Common Mistakes and How to Avoid Them
Even the most cautious person can make a mistake when faced with a clever scam or a high-pressure sales tactic. Understanding these common errors is the best way to build habits that will protect you from falling victim.
Mistake 1: Acting Too Quickly Under Pressure
Scammers and aggressive salespeople create a sense of urgency on purpose. They might say an offer is “for a limited time only,” that your “account will be suspended immediately,” or that your “grandchild needs help right now.” This pressure is designed to make you panic and bypass your rational judgment.
- How to Avoid It: Create a personal rule to never make a financial decision on the spot. Give yourself a cooling-off period of at least 24 hours. A legitimate business offer will still be available tomorrow. For urgent-sounding family emergencies, hang up and call the family member back directly on a number you know is theirs to verify the story.
Mistake 2: Giving Out Personal or Financial Information
Never provide your Social Security number, Medicare number, bank account details, credit card number, or passwords to someone who contacts you unexpectedly, whether by phone, email, or text. This is how identity theft begins.
- How to Avoid It: Be skeptical of any unsolicited request for information. Remember that legitimate organizations like the IRS, your bank, or the Social Security Administration will never call or email you to ask for this information. If you think the request might be real, hang up and call the organization yourself using the official number on their website or your account statements.
Mistake 3: Not Reading the Fine Print
Many financial issues arise from misunderstanding the terms of a contract or agreement. A salesperson may make verbal promises that are not reflected in the written document, or the contract may contain hidden fees and clauses you weren’t aware of.
- How to Avoid It: Never sign anything you haven’t read and understood completely. Take your time. If the text is too small, ask for a large-print version. If you don’t understand the legal language, don’t be embarrassed to say so. Ask the representative to explain it in simple terms, or better yet, take it home to review with a trusted family member, friend, or legal professional.
Mistake 4: Feeling Ashamed or Embarrassed to Report a Scam
Many seniors who fall for a scam feel embarrassed and choose not to tell anyone, including their family or law enforcement. Scammers count on this silence. It allows them to continue operating without fear of being caught and to target more victims.
- How to Avoid It: Understand that being targeted by a scam is not a reflection of your intelligence. These criminals are professional manipulators who deceive people from all walks of life every single day. Reporting the scam is a courageous step that helps protect your community. It provides authorities with the information they need to shut down these operations and prevent others from losing their money.
Mistake 5: Relying on Verbal Promises
A salesperson might promise you a special discount, a lifetime warranty, or an easy cancellation policy. But if that promise isn’t in writing, it is extremely difficult to enforce later on.
- How to Avoid It: Adopt the motto: “If it’s not in writing, it doesn’t exist.” Before you agree to a purchase or service, especially a significant one, make sure that all the promises made to you are included in the final contract. If a salesperson agrees to something, ask them to add it as a written clause or addendum before you sign.
