The anatomy of a financial scam

Financial scams look wildly different on the surface — romance scams, cryptocurrency schemes, fake tech support, phishing emails, grandchild impersonations. Underneath, they're all the same shape. If you understand the shape, you can recognize a new scam variant years before it has a name.

The five parts of every scam

1. A trusted contact — someone claiming to be the IRS, your bank, your grandchild, your company's CEO, Microsoft, the police, or a romantic interest. The scammer steals the authority of a known entity.
2. Urgency — 'respond right now or you'll lose access / be arrested / miss this once-in-a-lifetime chance.' Urgency is how scammers prevent you from thinking clearly or consulting others.
3. Isolation — 'don't tell your spouse / your bank teller / anyone. This is a private matter.' Scammers separate you from the people who would spot the con.
4. An unusual payment method — wire transfer, gift cards, cryptocurrency, peer-to-peer apps, cash in a package. Legitimate businesses never ask for these for anything important.
5. A story that's plausible but not verifiable — by the time you check it, the money is gone.

The single most useful rule

Never send money under pressure. Not to anyone, ever, for any reason. No legitimate organization on earth will ever require you to make a financial decision in the next 60 minutes. Not your bank, not the IRS, not your employer. The rule is absolute because the exceptions are too dangerous to learn.