Are You Being Scammed?

Scammers. I hate that I even have to talk about this, but unfortunately, I do – they are out there. And I have heard more horror stories than makes sense. However, the topic of scams and scammers has come up a fair amount lately.

There are some of those really obvious scammers, those who are entrusted with access to a person or entity’s finances and who abuse that access for their own financial gain. There are those who allegedly invest people’s money using a Ponzi Scheme to borrow from Peter just to pay Paul. Then there are less obvious scams like one I came across years ago, which I will get to in a minute. Whatever the level of scam, no one ever feels good about being scammed, and it, unfortunately, taints other professionals in that industry who are above board and hold themselves to a high degree of integrity.

The year was 2016 and I was working on a business plan for a client who was applying for business grants. This client was interested in a grant I had never heard of, but it was for small business owners, and they were offering a substantial amount at the time. As I was working on gathering the information that was required, something seemed off to me. This was supposed to be a grant for a small business owner, but they had something like 50 pages worth of requirements that had to be met. If you know anything about small businesses and business proposals this was overkill, to say the least. That was my first clue something was off. It was as-if they were setting people up to fail – no small business owner would be able to meet all of the demands for applying for the grant, which would mean they automatically disqualified themselves. So, what was the catch then?

The next thing I noticed was that this grant had an association with some company alleging to write business proposals specifically for this grant. It wasn’t a small fee either – the company was charging $2700 - $4000 per application. This was odd. It was odd that a company would be directly affiliated as the “go to” company for writing the business plan for this specific grant. A grant, nonetheless, that had 50 pages of requirements to even apply for the grant. This prompted me to look further into this grant before going any further.

The first thing I found out was that no one had actually seemed to be a recipient of this grant. Their website had reviews from people stating they received the grant prior to the actual date that the company started. In 2016 it was easier to see who owned websites, so I did a reverse search and tried to see if I could figure out if this was a legitimate person/entity that owned this grant. It turned out that the address was registered in the US, despite being a Canadian grant. And the owner? Well, it was Darren Morgenstern, the man who launched Ashley Madison in 2002, you know…the man and the website synonymous with peddling lying and cheating.

A quick search of Darren Morgenstern and you’ll see since 2001 he’s been part of a few lawsuits/legal action against fraudulent domains and grants. You might wonder “how can someone benefit from a fraudulent grant? Aren’t they offering to give money?” Well, in the example of the one I uncovered, no, they aren’t giving money. A company (or companies) pay them (the pseudo grant company) to be listed on their website as an “official provider” for writing a business plan. That provider gets paid by the client who learns of this grant, and there are so many “hoops” to jump through it’s plausible that no one ends up meeting the criteria, so no grant is ever awarded.

In the case of other fraudulent grant cases, it appears that Mr. Morgenstern is connected to, like a Canadian dental grant, people see an ad for a dental grant of say $5000 for implants. They fill out the questionnaire and receive a call or email back stating that they’ve received this grant of $5000 for the implants, but they have to pay the difference. They are quoted $20,000 for the implants, but they must pay $15,000 (more than it actually costs with a reputable dentist). The grant company is the middleman, so they pocket the difference between what it ACTUALLY costs to pay the dental company for the implants (most definitely less than the $15,000 they receive) and what the unsuspecting customer pays them. There’s a second source of income to these scams. Usually, there are dental offices that pay for the increase in dental patients and traffic (advertising and marketing), and the pseudo grant company drives the unsuspecting customers their way.

Another scam I see often, someone pretending to be more qualified than they are. I don’t mean being a little confident. I mean portraying that they are capable of filing corporate tax returns, yet they can’t even read an expense receipt. Or someone claiming they are an Accountant without having the degree or training of an Accountant. Unfortunately, there are people all over who feel entitled to take from others for their own gain. So, what do you do? How do you not recluse entirely and just succumb to the idea “I have to do it all myself then”?

First thing’s first, the stories I shared are far fewer than the good stories. There are far more qualified people doing jobs and providing services they are qualified to do with integrity. Phew! That’s good news. The bad just screams a little louder, but the good far outweighs the people who should be forced to wear a scarlet red letter.

Here are some green flags:

• Honesty and transparency. You get straight answers, and nothing feels like it’s being hidden in the fine print.

• Clear, simple communication. They can explain things in a way that you understand and makes sense.

• Tangible, verifiable results. You can point to real outcomes, not just promises or lofty claims.

• They welcome your questions. Curiosity is respected, not treated like an inconvenience.

• They can comfortably say “I don’t know.” If something is outside their scope, they admit it rather than pretending to be an expert in everything.

• Their incentives align with your best interest. You don’t feel like your confusion or dependence benefits them.

• They have appropriate credentials for what they claim to do. If they call themselves an Accountant, they actually are one.

• They set clear boundaries and expectations. You understand the scope, the process, and the costs.

Here are some red flags:

• You’re being sold something you don’t need or didn’t ask for, even if it feels subtle or “wrapped in value.”

• You’re being pressured or rushed. False urgency like “you must decide today” is rarely in your best interest.

• You’re asked for personal information that doesn’t seem necessary. If it feels intrusive, it probably is.

• Their answers are vague or inconsistent. When you ask direct questions, you get evasive responses.

• Big, unrealistic promises. Anything framed as “guaranteed,” “risk-free,” or “too good to be true.”

• They discourage you from getting a second opinion. A legitimate professional will never fear another expert looking over their work.

• They rely on fear to sell you. Threats about audits, penalties, or disaster are used to push you into decisions.

• There’s little to no verifiable presence or track record. No credible website, reviews, or professional history you can check.

Ultimately, the goal isn’t to become suspicious of everyone, it’s to strengthen your discernment so you can move through the world with clarity, confidence, and common sense. There are people who are doing unethical things, but there are many more who truly want to help and who operate with integrity. Hopefully this will help you or someone you know in the future.