Scammed By Family or a Friend? Here’s What to Do

Filed under: Personal Finance, Lynnette Khalfani-Cox

It’s bad enough to get financially scammed by a stockbroker, investment adviser or some other financial expert that is supposed to be working for you. But what should you do when a family member — or a trusted friend — scams you and costs you money? Here is some advice on handling this thorny situation.

Evaluate the Circumstances
Start by taking a long hard look at what went down. Was there some intentional fraud involved — like them using your social security number or credit without your knowledge? Did the con you by lying or manipulating you into giving them money? Or was it just a case of them giving you bad financial advice and you losing money? Family members and close friends may get ask you to “invest” in new business ventures or get-rich-quick schemes and then when you lose money, they say: “Don’t be mad at me… I lost my money too!” It’s hard to evaluate the extent of their guilt in these situations, which is why in most instances it’s best to say “No” to such “investment opportunities” and preserve your relationship. Trust me, they’ll get over it if you say “No” and decline to “invest.” But you may not get over it, if you invest and get scammed.