I Lost $5,500 in a Scam—How I Bounced Back

Even the most financially savvy folks can fall prey to a ‘get rich quick’ scheme, as Conny Gordon discovered. Gordon, the founder of The Simple Adult, a financial literacy platform, is proof that anyone can be scammed. Despite her financial acumen, a scheme promising overnight wealth through Airbnb arbitrage led to a significant financial loss.

Conny Gordon was not unfamiliar with scams. As the proprietor of a financial literacy platform, she knew well enough to be cautious. But the prospect of a lucrative new revenue stream was too enticing. This inclination led her to interact with a ‘get rich quick’ scheme that ultimately cost her $5,500.

As Gordon herself says, “Earlier this year, I became the victim of a get-rich-quick scheme that promised financial freedom through Airbnb arbitrage. The allure of financial independence and the ability to provide for my family were irresistible, especially after seeing many success stories from others online.”

Back in February, CNBC brought to light a deceptive scheme targeting individuals eager to supplement their income. The scam claimed to offer “higher returns than the stock market” through Airbnb arbitrage, a strategy that involves leasing properties long-term and renting them out short-term for a profit.

While this can be profitable, it is fraught with challenges such as legal issues and minimal profit margins, making it a risky venture for most. Although the scheme targeting Gordon wasn’t identical to the one CNBC reported, it shared similar tactics designed to exploit economic optimism.

The allure of real estate arbitrage can be captivating, especially for those who lack the means or knowledge to invest in property directly. Skilled individuals may earn money this way, but be wary of anyone guaranteeing it will be easy. Gordon overlooked such warnings in her excitement.

She recalls, “The course promised immediate returns with minimal upfront costs. Pressured by my circumstances, I quickly signed up.”

Description: “The program marketed itself as a foolproof way to achieve high earnings by renting properties without owning them,” Gordon elaborates. She was assured of financial success, claiming, “I could make thousands monthly without property ownership or renovations.” These assurances fueled her investment of $5,500, a considerable sum given her financial instability after a layoff.

Like most get-rich-quick scams, Gordon’s scheme required significant upfront spending. After paying $5,500, she soon discovered the daunting tasks expected of her.

“I had to contact 300 landlords and 200 agents weekly, negotiate contracts, research over 150 listings, and manage properties remotely,” she recalls. “The terms were overwhelming and withheld until after payment.”

Coming to terms with being scammed is never easy. For Gordon, the realization hit when she noticed the so-called coaching turned into high-pressure sales tactics with little practical help.

“I recognized it was a scam when the promised ‘coaching’ turned into an environment focused on upselling additional services. Despite following the steps, no financial gains came, only mounting anxiety over further financial loss,” she shares.

Eventually, Gordon faced a loss of $5,500, which deeply impacted her savings and set back her business plans. The emotional burden was equally significant. “The stress of being deceived and watching my savings drain was overwhelming,” she confides. Nevertheless, she persisted.

Refocusing on her core business, The Simple Adult, and genuine growth strategies, she cautions others about these schemes. Gordon’s experience underscores the importance of prudence, thorough research, and the avoidance of desperation-driven decisions.