Most of us like to think we'd never fall for a scam.

We're good about deleting suspicious emails, ignoring texts about unpaid tolls, and hanging up on "calls from our bank."

But according to the FBI's latest report, Americans age 60+ reported $7.7 billion in fraud losses in 2025, about a 60% increase from the year before.

And contrary to what you might assume, many of the people behind that number weren't careless or naive.

In short, falling for a con has very little to do with intelligence, and understanding why is one of the best ways to protect yourself and the people you love.

And since knowing the red flags only goes so far, I’m also sharing my 9-page Retirement Security Checklist with you today.

It turns everything below into a short list of steps you can take this week, and you can download it here.

In today's email:

• Why smart, careful people fall for scams
• 5 red flags that could indicate you're being conned
• The one payment method scammers love most (and why you should avoid it)

As always, I'll wrap up with a few of the best retirement and investing articles I read in the past week.

***

Before we dive in, did you catch this week's podcast? 👇

It's Not About Intelligence

Falling for a con doesn't mean you're careless, stupid, or gullible.

It means you're human.

Scammers are experts at manipulating emotion, urgency, and trust, and the better you understand those tactics, the harder it becomes for anyone to use them against you.

It's widely documented that con artists don't seek out unintelligent people.

They seek out feeling people: those who are hopeful, those who are under pressure, and those who believe in fairness and goodwill.

In other words, they prey on emotional vulnerability, not intellectual weakness.

Which is why one of the most dangerous beliefs you can have is that you're immune.

Confidence is exactly what scammers exploit.

It's also worth remembering that fraud doesn't always come from a stranger or a faceless corporation.

Sometimes it comes from a respected professional in your community, or from someone your friends and family have trusted for decades.

As Jonathan Walton, who lost nearly $100,000 to a sophisticated scam, put it:

With that, let’s unpack five red flags, which come from one of the most popular podcast episodes I published last year.

Red Flag #1: The Perfectly Timed "Helper"

The FBI has a specific term for people who somehow show up at precisely your moment of greatest need.

They're referred to as "rescue merchants."

If someone appears out of nowhere with the exact solution to your problem, your internal alarm bells should start ringing.

The challenge is that when you're stressed or desperate, your cognitive bandwidth shrinks.

You're focused on finding a fix, and everything else (like who this person is or whether their offer even makes sense) gets pushed aside.

As Eric Barker points out in his article, they'll say things like, "I know exactly what you're going through. I've been there myself. That's why I created this program for people like us."

It may feel like empathy, but it's a sales tactic.

To be fair, appearing helpful doesn't automatically make someone a scammer.

But if someone magically appears at the right time with the right solution to your problem, I'd encourage you to take a step back and proceed with caution.

Red Flag #2: Instant Intimacy

The second red flag is when someone new in your life is immediately and intensely thoughtful.

They remember every detail you've mentioned, they're extraordinarily attentive, and they make you feel special almost instantly.

Of course, this feels wonderful -- who doesn't want to be seen and understood?

But authentic relationships don't develop at warp speed.

Normal people gradually increase their support and investment as a relationship deepens over time.

As Eric cleverly put it, if someone is moving too quickly with their kindness and generosity, "they're not trying to get to know you; they're trying to install malware in your soul."

You can appreciate someone’s kindness while still being cautious when a relationship moves unusually fast.

But when someone seems unusually eager to earn your trust, it’s worth considering what they might want in return.

Red Flag #3: The Overshare Trap

The third red flag is when someone you've just met starts sharing deeply personal information almost immediately.

They may tell a carefully rehearsed, emotional story designed to create an instant sense of connection.

And because we naturally tend to open up when someone else does, you may find yourself sharing personal details of your own.

Before long, someone you barely know can start to feel like an old friend.

And that sudden sense of closeness can make you more willing to do favors, share sensitive information, or even send money when they ask.

Genuine trust takes time to build, so be cautious when someone seems eager to skip that process.

Red Flag #4: Constant Chaos

The fourth red flag is when someone's life feels like a never-ending soap opera.

There's always a new crisis, and somehow they're always the victim.

Their coworker is jealous... their neighbor is spreading rumors.. their "business partner" disappeared with the funds.

And now they just need a little help until things calm down.

By this point, you're emotionally invested, and you may even find yourself defending the story you've been told:

That you're the one person they can trust in a world that keeps wronging them.

But chaos is a tactic because it keeps you distracted, sympathetic, and too tired to see the pattern.

Of course, everyone goes through difficult stretches.

But when there's always a new crisis, someone else is always to blame, and you're repeatedly being asked to help, it's worth taking a step back and looking at the bigger pattern.

Red Flag #5: The Wire Transfer Rule

Here's a basic rule of financial survival: Never. Send. Wires.

Scammers love wires because they're instant and, in most cases, irreversible.

Only in rare circumstances, and usually only when it's reported immediately, does the money have a chance of being recovered.

As Jonathan writes in his book:

Yes, there are legitimate reasons to wire money, like buying a house or a business.

But for most everyday transactions, a request for a wire should be seen as a massive red flag.

Bottom Line

I hope it's clear that it's not stupidity that makes us vulnerable to scams.

We're vulnerable because we're human and because we want things to get better.

Maybe we're hopeful, tired, or think we've earned a break.

That's what scammers feed on, and the real danger is thinking you're too smart to fall for it.

As Eric wisely puts it:

So if an opportunity ever shows up at just the right moment, from someone who seems almost too kind, with a deadline attached, I encourage you to slow down and talk to someone you trust before any money changes hands.

Until next time, stay safe.

📚 What I've Been Reading

• What the Midterm Elections Will Mean for Markets (Morningstar)
• Social Security Sets Its 2027 COLA Increase At 3.6%. Here's What To Know. (CBS News)
• Social Security Claiming Ages May Soon Get New Names (CNBC)
• Social Security Is Running Out of Time. What Happens Then? (Morningstar)
• The Surprising Benefits of Small Talk (Meghaan Lurtz)
• Why Small Dogs Tend to Live Longer Than Big Dogs (Smithsonian)​

Thank you for reading!

Please reply to this email with comments, questions, and/or feedback.

Stay wealthy,

Taylor Schulte, CFP®