Though logic seems to suggest it should be otherwise, even experienced, intelligent businesspeople can fall prey to some tricksy bamboozlement. Scams are a perennial threat to us all, with scam artists preying on the basic human traits of fear and greed to create a sense of urgency and scarcity that drives people to make desperate decisions.

In his recent article for Inc, BigSpeak’s EVP and practicing attorney Ken Sterling shares insider knowledge on identifying and avoiding a specific and legendary scam: the Ponzi Scheme.

As a young man taken under the wing of a now notorious realtor known as the “Ponzi King of Southern California,” Sterling witnessed his erstwhile mentor carefully crafting conditions that lowered the target’s inhibitions and overrode their logical reasoning. An atmosphere was created in which the victim felt they had to act quickly or lose their chance to take part in a highly exclusive project– so be wary of cases in which a potential business partner offers an in on “a funding round that’s about to shut” that “usually only allows higher net-worth partners in, but for you, an exception could be made.” If something sounds too good to be true, Sterling warns, it is!