Recently, I found myself added to a WhatsApp group by strangers. Normally, I would report and exit, but I wanted a laugh so I decided to stay. The group promised to teach its members how to get rich through daily updates from a "Professor Brian." The allure was strong – no need to buy products or share personal information, just pure teaching. Sounds too good to be true right?

 

As the messages flowed in, members expressed their excitement and were thanking their lucky stars for being added. Skepticism was scarce, and when one person voiced reservations, the majority reassured them that since no information was required, it must be legitimate. One even remarked, "Hey, even if it is a scam, they usually give out free stuff first."

 

Finding myself increasingly uneasy, I decided to drop a bombshell. I explained that this could very well be a classic "pump and dump" scheme, where the orchestrators artificially inflate the price of a stock through misleading statements, only to sell off their shares at the high point, leaving others with worthless stock. I shared a few links to credible sources explaining this type of fraud.

 

The speed at which I was removed from the group… let me tell you. After I was removed I received private messages from some members asking why I had been kicked out. I shared my links and insights with them privately. Initially, they were reluctant to believe me, but my professional background lent me some credibility. Especially when I asked them to think about why I, a professional, would share my knowledge without expecting anything in return – and why "Professor Brian" would do the same.

This experience highlighted how easy it is to fall prey to schemes that promise effortless wealth. This promise of quick riches when delivered at the right time can cloud judgment, making even the most cautious individuals susceptible to scams.

 

There’s a growing trend of providing questionable financial products and teachings. According to the Federal Trade Commission, consumers reported losing more than $3.3 billion to investment scams in 2020 alone.

 

I’m not sure how I got on the list to be added to that group, I’m sure they regretted it the moment I mentioned “pump & dump”, but it happened. And were I not in the financial profession I am not sure I wouldn’t have stayed. I urge you to remain vigilant and skeptical. Always research and verify the credentials of anyone offering free financial advice. And remember: if it sounds too good to be true, it probably is.

 

Stay informed, stay cautious, and protect your financial well-being.

 

Want to learn more? Please read this article on 6 Common Financial Scams to Watch Out For.