If you’re reading this article, chances are you’ve been either approached to buy a World Financial Group (WFG) product or to start working for WFG as a financial advisor.
You might be curious but may also be wondering: Is World Financial Group a scam?
You’ve probably heard whispers about this from other friends or colleagues warning you that WFG is a scam, which I believe is a common occurrence.
In the finance industry where I had worked for over a decade, World Financial Group doesn’t get a lot of respect amongst its peers. But as of 2022, WFG has over 53,000 associates working for them. In 2021, WFG paid out over $1.1 billion in commission to its associates.
Say what you want about the company, but there’s no denying that it is a huge global force and one that requires close examination. Let’s go through this World Financial Group (WFG) review to see if it is a scam or legit.
MLM Financial Planning
WFG has a multi-level-marketing method of promotion and recruitment that can turn both customers and employees off. Read this WFG review to find out if it’s a scam or legit.
- The marketing and sales system is likely effective as WFG has impressive sales numbers, and you’ll get training on their tactics.
- Multi-level marketing (MLM) strategy is seen as a pyramid scheme by many and can be a difficult objection to overcome when trying to close sales.
- Reports of high pressure to recruit other associates to work under you
- Very difficult to make a lot of money using an MLM strategy, with only a small fraction of members finding long-term success.
- You could become a social outcast if you are too aggressive in selling to your family and friends.
- There could be a conflict of interest as the WFG associate might try to sell you a high-commission product that isn’t necessarily well-suited.
Check out my viral video, with over 130,000 views about this topic!
What is World Financial Group?
WFG is a company that sells financial planning services. The company sells savings, insurance, and retirement products through its associates, who usually have to pass a licensing exam for the country they live in.
The company was launched in 2001 by an insurance company called Aegon. In 2008, another insurance company, Transamerica, purchased WFG from Aegon. The company operates in Canada, the U.S., and Puerto Rico.
Is WFG a Scam or Pyramid Scheme?
One of the biggest accusations levelled against the World Financial Group is that it operates as a pyramid scheme and is an outright scam.
Pyramid schemes are illegal in most countries. In a classic pyramid scheme, individuals make money primarily from recruiting others, not from selling products or services to the public.
I wanted to answer this question right off the bat. In the literal sense of the word, no, World Financial Group is not a scam. The company will not take your money as a customer and give you nothing in return. That’s what a scam or a pyramid scheme is, and WFG is not that.
If you join the company as an agent, you will have the chance to earn an income and need to be licensed in order to sell any of these products directly. WFG is approved and regulated by the financial governing bodies of the countries where it operates.
However, where many people are turned off of WFG and wonder if it is a scam is due to its sales tactics in acquiring customers and multi-level marketing (MLM) methods of hiring agents to work for them.
How Does WFG Hire Associates?
WFG employs a multi-level marketing (MLM) business model for its associates. The way it works is after you get hired onto WFG and pass all the licensing exams, you’ll have to recruit new associates.
After you join WFG, you’ll be encouraged to get off to a “fast start,” where you are supposed to recruit three new members and sit in on three training sales within the first 30 days of the company.
This aggressive approach to recruiting new members sets off alarm bells in my head. Getting these new recruits and associates is another type of sales tactic.
Any products that those associates either buy themselves or sell to other people, you’ll get a percentage of the commissions.
A lot of WFG’s sales come from its associates themselves. It’s a classic MLM business model and one that should be a huge red flag in choosing to work for WFG. Their own website shows the multi-level shape of their business model.
How Much Money Can You Earn at WFG?
You will only receive money as a commission if you sell something at WFG or if those associates you recruit under you buy or sell WFG products.
Even ignoring all the negative connotations that come with MLM companies, I’ll give you an example of why WFG is not a great place to work. Let’s take a look at the WFG contract levels, which is the amount of commissions you can earn for say, a product like life insurance.
If you have a contract level of 100%, you will earn 100% of the first-year commissions on top of what your commission structure is.
When I first started out as a life insurance broker, I had an 80% contract level to start, and it increased to 140% near the end of my time as a broker, which was in less than two years.
According to a previous year’s compensation report that I found (which I can’t link to due to copyright claims by WFG), a WFG Associate contract level is a measly 36%, a Marketing Director contract level is 51%, and a Senior Marketing Director contract level is 64%.
I’ve had some WFG people reach out to me directly, and the contract levels they have mentioned seem pretty in line with those numbers.
There are other better and more reputable brokerages out there. If you are willing to get licensed, they can also train you and support you better than WFG and give you a larger payout.
Also, don’t be fooled by the WFG website, which states that the average earnings for someone with 0 – 3 years of experience is $88,075 per year. This is for a Senior Marketing Director if you read the fine print. The average new associate who joins WFG won’t make even close to this amount and often won’t make anything at all.
How Does WFG Get Its Customers?
WFG relies on its associates in two main ways to get customers. Firstly, any of the products the associates themselves purchase essentially turn them into customers.
All those new associates will be immersed in WFG products and culture, and many will end up buying products themselves. Then, many are taught to aggressively try to get more associates, spreading the WFG product line and sales almost like a virus as it multiplies down the levels.
As an associate, you’re expected to make a list of all your friends and family and approach them to sell your financial products or to recruit them as an associate for WFG.
But that is typical of all MLM financial companies, and I don’t want to knock WFG specifically. They aren’t doing anything illegal, but I just think it’s a terrible business model for both customers and associates, and there are so many better options out there. But it obviously works, as WFG has a tonne of sales. If anything, this just shows the power of “warm” leads and buying from people that you know and trust.
As a former sales guy, I think that WFG must have an extremely effective pitch for new members because it is obviously working and getting results. But as an investor or insurance purchaser, I would never hire a WFG associate.
I get it, though; investing and insurance can be intimidating. If you’ve never worked with numbers or cared about your finances before, the whole process can be daunting. But consider putting some time in, learn how to start investing, and take control of your own finances.
If you need to hire an advisor, try to find a properly trained fee-based one, and one that won’t just try to charge you an annual fee on your investments and never speak to you again.
Is WFG a Legitimate Company for Customers?
Yes, WFG is a legitimate company. If you purchase an insurance or investment product from them, you will receive the product.
But beware, you may be pressured into purchasing expensive products that may not be the best for you but will earn the associate selling it a big commission, such as permanent life insurance or segregated funds. There are numerous anecdotal accounts of this happening; just scroll through the dozens of comments below this article (some even state that “WFG ruined my life!”).
Often, the associate you are dealing with may not have much financial or investing experience and will likely try to recruit you to become an associate also.
As a former life insurance agent and financial advisor, I can understand the success of WFG. The secret to WFG is its method of using what we call in the industry “warm” leads.
You’re much more likely to buy or trust someone that you know. Multi-level marketing relies on this, and you’ll see it applied to many different businesses, the most successful one probably being Amway.
Have your guard up, and if WFG is pitching you something, don’t be afraid to ask tough questions like “what will you get paid in commissions on this product?” They are legally obligated to tell you their financial incentive; if they don’t reply, that’s a big red flag.
Should You Become a WFG Associate?
In my opinion, it is very difficult to make money with this business model. Yes, there are some success stories, and in its marketing materials, there will be descriptions of people getting rich at WFG. However, it will be a very tiny fraction of the overall recruits.
Sure, if you’re willing to hustle your butt off, contact all your friends and family, and aggressively pursue new sales prospects, then yes, you might be able to find success with WFG. But if you’re this much of a go-getter, why would you stick with a company like WFG?
You’ll also risk damage to your reputation and maybe even your personal relationships. WFG almost has the same negative stigma as Amway does. You could become known as the “pyramid scheme” person behind your back and might be avoided in social situations.
Other Reasons to Not Join WFG
High Fees
Another accusation against World Financial Group is that the company charges high fees from its associates. When someone joins WFG as an associate, they are required to pay a fee for background checks and online access to company resources. There are also continuing costs for training materials and meetings.
There have been complaints from WFG associates that the cost of becoming an associate and maintaining the membership is too high. Some also argue that the company is not clear about these fees upfront, leading to surprises for many new associates.
Misleading and Inadequate Training
Training provided to new recruits often focuses more on sales and recruitment techniques than on giving a comprehensive understanding of the financial products they’re expected to sell.
Many new recruits feel they are not adequately prepared to provide accurate financial advice to clients. They contend that the training is misleading because it overstates the potential income and understates the difficulty of selling insurance and investment products. This could potentially lead to unsuitable financial advice being given to clients and new recruits having unmet income expectations.
Unsuitable Products
World Financial Group has been accused of promoting unsuitable financial products when it isn’t necessary for the client, such as Universal Life Insurance. This can have the effect of giving the agent a big commission cheque, but it might not be the best product for the customer.
WFG associates, driven by high commissions, might be pressured to sell products that are more beneficial to them rather than ones suitable for their clients.
Why I Hate MLMs
I’ve been pitched multiple MLM ideas over the years, ranging from smoothie drinks, painting business, Amway, and many more. Here are some of the reasons I hate MLMs:
- MLM pitches are annoying and misleading and always sell the same kind of story: be your own boss, recruit three other people, and they will recruit three more, then you’ll have hundreds of people working for you, all while making money on whatever they sell!
- If someone I know pitches me an MLM business idea, it makes me think less of the person and want to avoid them in the future.
- While selling something like smoothie drinks is relatively harmless, having this business model for something so vital as investment products could have a direct harmful impact on customers by not having properly trained advisors that have your best financial interests at heart.
- It’s very difficult to climb to the top of an MLM company and actually start making really good money.
- Any business model that places more of an emphasis on recruiting new members rather than customer needs in order to make money is one to be cautious of.
World Financial Group Alternatives
If you were excited to join WFG before reading all this, I hope you aren’t too dejected now because there are a lot of other ways to make money and build your own business.
Build a Skill
I strongly suspect that most people who join WFG aren’t that passionate about investing and insurance, and certainly not sales. Instead, they’re just looking for a way to make some money on the side or at home.
If that’s the case for you, why not build a tangible skill instead? You can learn something like how to code, become a virtual assistant, or brush up on design skills, then freelance your services to clients. The possibilities are endless. Check out lists like these for ideas:
- 25 Authentic Work-From-Home Jobs – No Degree Needed
- 30 Effective Ways to Make Money Online in Canada
- 30 Side-Hustles in Canada To Start Right Now
Employee
Instead of working at WFG, you can get licensed on your own to sell investment and insurance products and start working for an insurance or investment brokerage.
I mentioned before that I worked for an insurance broker in Canada that had way higher commission payouts than WFG has (see below).
ou won’t have to worry about the bad reputation that WFG seems to have among some consumers. You will also get trained up at these brokerages. Contact brokerages in your area to see if there are any opportunities or see if there are any job postings on sites like Indeed.
As A Customer
As a consumer, there are countless other options for you other than buying from WFG:
For Investors
If you’d like to become a do-it-yourself (DIY) investor, sign up for an online broker and learn how to invest on your own. Here are my top picks on the best trading platforms in Canada.
If you need a little bit of advice, you can look at my top picks for the best robo-advisors in Canada.
For Insurance
For Canadian term life insurance, I would recommend PolicyMe. They’ve recently created their own products and offer them at very competitive rates. Check out PolicyMe’s website for some free quotes.
Another life insurance option for Canadians is PolicyAdvisor. You can compare 20 different insurers very quickly and get the best rates. They have more options such as term and whole life, disability, and critical insurance you can choose from. Check out PolicyAdvisor’s website for a quick comparison of 20 companies.
Finding an Advisor
If you must use an advisor, try to find a fee-based advisor that is not incentivized to push you towards a certain product. They can help you with both investments and insurance. Do a search for a “fee-based financial advisor” in your area. Try to find one with a Certified Financial Planning (CFP) designation. You can also search on a site like Money Coaches Canada for a fee-based advisor in your area.
Work for a Better Insurance Company
Steer clear of MLM companies with low payouts like WFG. Opt for a career with a credible insurance company. Here’s how you can do it.
Steps:
- Choose a License Type:
- Canada: Decide between types such as life insurance, accident & sickness, and general insurance (e.g., property, auto).
- USA: Decide if you want to sell life, health, property, casualty, or other insurance.
- Complete Required Education:
- Canada: Enroll in an accredited insurance course relevant to your type; courses are offered by institutions like the Insurance Institute of Canada.
- USA: Complete the required pre-licensing education hours, either in-person or online, as mandated by your state.
- Pass the Licensing Exam:
- Canada: Take and pass a provincial licensing exam.
- USA: After pre-licensing education, take the state licensing exam, focusing on state-specific regulations and general insurance topics.
- Apply for a License:
- Canada: Submit an application to your province’s insurance regulatory body, which may include background checks.
- USA: Apply through your state’s Department of Insurance or equivalent, with most states requiring fingerprinting and a background check.
- Maintain the License:
- Both: Obtain Continuing Education credits periodically and stay updated with regulatory changes and industry practices.
- Join a Brokerage or Insurance Company:
- Canada: To sell insurance products, align with a recognized insurance provider or brokerage.
- USA: Before selling, be contracted or appointed with an insurance company.
Note that before getting licensed, you can try to find an insurance company that will sponsor and guide you through the licensing process. Research life insurance companies in your region, and use LinkedIn and Glassdoor for insights if you go this route. You can try reaching out to insurance agents directly as well via LinkedIn.
Has WFG been sued in Canada?
Yes, WFG has been sued before both in the U.S. and in Canada. Here are the details of some of the cases:
- In 2014, WFG Securities of Canada Inc. agreed to pay $250,000 to settle a case against it by the Manitoba Securities Commission.
- In 2022, WFG terminated an agent’s membership agreement and the agent was served two administrative monetary penalties.
- In April 2023, the Financial Services Regulatory Authority (FSRA) issued a notice of proposal against World Financial Group Insurance Agency of Canada Inc., alleging gaps in WFG’s operation and ongoing proceedings by another regulator against WFG.
- In 2022, a lawsuit was filed against WFG in the United States. Seven brokers sold $1.4 million worth of fraudulent notes, scamming investors of their retirement savings.
Final Thoughts
While WFG may not be an outright scam, I wouldn’t personally ever work or buy any products from them, nor would I recommend any of my friends or family to either.
I believe there are so many other better options in terms of choosing a career or buying financial products.
When I wrote this article, I wanted to get to the bottom of WFG’s success despite the many complaints I’ve heard about them.
I want to end this by saying that not all WFG agents are bad, and it wasn’t my intention to paint every person there with the same brush or to cause so much anger in what I wrote.
There are competent, honest, and intelligent agents at WFG, and I’ve interacted with many since publishing this article. I’ve also interacted with some fairly nasty ones as well.
I’ve edited content in this article that I didn’t deem accurate after a rational argument and facts were presented to me, but my negative opinion on financial MLMs still stands.
If you can avoid all of the bad agents at WFG (and there are a lot of stories about unscrupulous agents, see the hundreds of comments in the comment section below or on my Youtube video for some horror stories!) and find a good agent that you can trust, then you might be alright with buying products at WFG, but I still feel there are better options out there.
There are two extremely divided sides to this argument, and I hope that this has helped to spark some conversation between them.
If you want to learn about other MLM companies that you might want to avoid, check out my Primerica review or my Greatway Financial review.
In every field you can see good and bad people. There are bad doctor’s who prescribe unnecessary medication to the patients. Can you judge all the doctors are bad. You can point out few restaurants serve bad food for the customers. Does it mean all the restaurants are bad.
How do we get this opinionated blog taken down? There is so much mis-information that there should be a law or even a lawsuit. I can’t possible cover all of it but it is effecting my business and leading people to believe things that are not true.
– As a WFG it has been life changing for me. I have never worked for a better company and many positive, motivated and helpful colleges. Not to mention all the rewards including , golfing, World Cup Soccer event, Fancy dinners at Pampa and other amazing restaurants, convention at Banff Springs hotel and Vegas, Skip the dishes gift cards etc. Just rewards & recognized for doing good work, which is not common in the corporate world.
– So many families helped. I don’t bad mouth other companies as that was part of the ethics course during the government licensing process but this post should be reported as un-ethical. Exactly what firm are you now working for now Christopher Liew?
– Highly regulated industry. Must have a government license to work in finance. WFG has ongoing training daily as well as training continuously from the companies we are partnered with.
– Most all WFG agents educate the client on the products and services available and then let the client decide what best suits them. Never do we push a product and not mention or compare them to any others. For many younger people or younger wealthy people, a tax sheltered UL is best, possibly mixed with some term insurance. For so many people, that is the only savings they have when they reach 65 and never saved a dime into a TFSA, RRSP (Canada), IRA (USA).
– The contract levels and payment structure is not accurate. TA:26%, A:36%, MD: 51%, SMD: 66%. If you don’t like the lower contract levels than I don’t see how you would get the amazing support and the training involved with another company. Good luck figuring out how to do that on your own.
The problem with many companies is that nobody wants to train the new guy if there is no incentive to do so. At WFG there is an incentive. The support by your colleges is what makes it great. In business for yourself, but not by yourself.
The commissions are disbursed between the agent and their upline. I don’t think that is what a MLM is specifically but if it is than that is why support is great at a MLM. Also working with people you trust (warm market) is preferred. Do you like cold market or working with people your don’t know? Do you like getting cold calls from strangers. Every business must market to get clients. So which do you prefer as a business owner. If you pay for marketing, than somebody pays for that. Unfortunately it is the client in the end that pays as a business must make money. Networking is free marketing so it is preferred by many business owners.
– If you want to trade time for money than do that. There is a sense of security by people who have jobs but when they get let go they panic. When you have a successful business you don’t have that problem as you know how to start another business if it fails. I feel entrepreneurship should be taught in school.
The personal growth at WFG has been world class. Listen to “The Pursuit” podcast by Ben Spangle and also Ed Mylett also has amazing podcast and amazing leadership.
I hope this helps others to try things for yourself instead of letting others decide for you what is possible. WFG is not easy but is worth it if you stick with it and give it 100%.
WFG may not be a scam to customers but it definitely is to the people they lie and trick into selling their “products”. They charge for a useless “product” list that anyone can google, charge for an office no one can go to, etc.
Hello! I came to this post because a friend of mine introduced me to someone (her upline) and said that will introduce about financial literacy. The upline lectured us about estate planning and said that we could have it for as low as $100 since we are friends then asked for our ssn and credit card details. Later we found out that it’s a membership fee and tadaahh we’re already a member. We felt cheated because they didn’t explain to it transparently. All we just wanted to know is where and how to invest.
And herein lies the controversy. I’m sure that there are lots of WFG agents that wouldn’t resort to such sleazy tactics, but I’ve heard of so many stories similar to this.
Do you know if it’s possible to have the $100 be refunded to us?
Anyway, do you have recommendations on where to get a life insurance or where to invest? Thank you.
I am not sure if you can have it refunded to you! As for your other questions I try to cover it in the blog post.
Yes its possible but why would you want to. You just acquired a years worth of business training, financial education from multi millionaires as well as having access to over 200 companies so you can custom tailor a financial package that best fits your clientele, rather than pushing something on them because thats all you have to offer! And the commission in this article is way off and misunderstood because it doesn’t work like typical insurance sales. We are primarily financial educators and teach our clients how everything works in the financial industry. We show people the tax advantages owning a business has. We recruit in the same sense that every business does. An employee at a company was recruited. You want to build a business, you need employees. The difference is we offer on the job training where most employers expect you to come with all the skills required, and we do this because the pay is commission based and not hourly. This is not an MLM, it is similar to an MLM but there are key differences. MLM’s you make money off recruiting. We get paid only when a product sells. This is not how an MLM works. Its also not how an hourly job works. Since you call in an MLM i will use that terminology. It is in between these methods of business and is why WFG has an amazing system that has your “upline” constantly supporting and trying to grow their “downline”. A traditional MLM you don’t care about your downline’s success because you got paid out on their recruit.
As a current WFG agent, I can tell you that though my team and I are definitely not like that, like most commission based enterprises, there are definitely those that will find ways to use it to their own advantage over that of their clients.
Many of the people I have met and worked with in WFG are very much like minded in that our goal is to help educate individuals and families on the basics of financial literacy. Something that is definitely in greater need as historically, the financial industry has focused largely on the wealthiest of society.
When I began with WFG, I was not interested at all in recruiting, nor was I constantly pressured to do so by my upline. I chose to beginning building a team of my own for the same reason as many of us. There are only so many hours in a day for myself to help others. By expanding my team, training them to help others as I do, I expand my reach of people and families I can help.
Like a mortgage broker does, I earn override commissions on the work that my agents do. This gives me the incentive to not only recruit but, and more importantly, to also ensure that they are trained appropriately to do as I would.
I hope this helps many to understand a bit more about why we do things the way we do and to express the point that like many professions, there are some bad apples, though I have found them to be the exception and not the rule with regards to WFG.
Many agents are incouraged to develop their personal, and professional skills and knowledge to be able to fully help clients, but it is still on the individual to make use of the opportunities presented to them.
Heard… yes there are sleazy rumors about every insurance company. How about looking at dat and statistics, and not rumors.
that’s not at all his wfg operates . that wasn’t through them.
I don’t think the actual products or system of WFG is bad but the sales tactics/recruitment methods are highly questionable and distasteful! I absolutely would not buy a financial product from this company just because the quality and ethics of the agents I have come across are so questionable.
I met up with an acquaintance from a college class who acted as if she wanted to grab coffee. I thought it was strange as we had not had much interaction but figured she might be feeling isolated after the pandemic, tried to do my good deed by meeting up with her but turned out she was trying to shove WFG down my throat.
I actually wasn’t turned off by WFG, the opportunity to sell financial planning sounded interesting! BUT the behavior of my friend and the woman who recruited her was incredibly aggressive and a bit of a show, low focus on substance and high focus on flash.
Two days from when we grabbed coffee, my acquaintance was pushing for a meeting to show me about the WFG program. I let her know I was kind of busy but ok, I’ll attend the online meeting. The online meeting was highly questionable, the woman presenting seemed to focus more on telling me about how much money she made through WFG instead of how she actually made the money or even what the WFG program was. By the time the hour long presentation was over I knew she said she had made serious money in earnings but I still had no idea what WFG actually was because she didn’t focus on that. That should have been my sign to run for the hills.
The presenter kept stating that she had retired before she hit 40 because woohoo, WFG was so good for her finances! But she kept on trying to frame the situation as “ I retired we earned so much from WFG!” when in reality she and her husband had just moved from working their 9-5 jobs into doing WFG recruitment full time. This seemed a bit disingenuous but i brushed it aside.
A few days after that meeting I get a document from my college acquaintance asking me for my employment information, medical history, family information, beneficiary information and so on. Turns out she was getting ready to sell me life insurance but ummmm…what? I had no idea that the WFG recruits were trying to earn money by selling products to other recruits. In addition tactics were very aggressive. I received multiple texts and emails a day regarding “meetings” to try to get me to sign up for products. The early interactions left a bad taste in my mouth but ok whatever, for $200 bucks I’ll try out this course nothing to lose.
I wish I hadn’t signed up. After I signed up I ended up sick for a few weeks, to the point where I was at my best friends house with her taking care of me (I had what I’m pretty sure was covid but all my tests kept coming back negative). I was absolutely exhausted, had already told my college acquaintance I was super sick and…
I got texts, a lot of texts, from both my college acquaintance and the woman who recruited her trying to schedule meetings even though I told them I was very sick. That didn’t stop them from trying to message me numerous times over three weeks trying to schedule meetings. I could barely manage to sit up for weeks but these people were trying to schedule half hour zoom meetings when I already told them I wasn’t even near my phone for days, the friend taking care of me was screening my calls and texts and keeping my family and friends updated on my status. It was ridiculous but I tried to move past it because I considered the fact that I may have just been in a really bad mood/unfairly annoyed because I had been so sick.
Yeah no. I realized in full health the agents I was dealing with were manipulative. They were super pushy on trying to get me and family members to sign up for products, kept trying to disguise aggressive sales to me as friendly zoom meetings and just overall these people felt like people who did not have the morals and values of people I wanted to do business with.
WFG is not a pyramid scheme but it is an MLM. The structure of the business rewards sales and there are agents out there who are literally willing to bombard a sick person with texts to try to make a sale and agents who disguise aggressive sale meetings as friendly “catch up” get togethers.
I would absolutely avoid WFG just because there is no set standard for levels of professionalism and conduct. The products are genuine but unfortunately being peddled by some agents with extremely questionable morals.
yet again a person who doesn’t have the full story here. you paid 200 to become licensed . then the emails come automatically . it’s like any other business where your employer sends emails.
now the person you dealt with is the issue not the company . and they have access to more financial services than other places especially banks and it’s not mlm as the money earned isn’t from the person they recruit but the companies whose product is sold.
this article and your bad experience aren’t the facts
I don’t find anything wrong in this Post except generalization. There are both Good people and Bad people in every industry. Fortunately I have seen both in WFG.
Good People –
1. Understand clients need.
2. Protect clients wealth.
3. Accepts that something went wrong and tries to fix it.
Bad People – They tend to play with peoples fear in disguise of providing financial literacy.
1. Do you want to take control of your life?
2. Who controls your time? You work for money and does your money work for you?
3. Do you want financial literacy and/or financial independence?
4. Is your money growing?
5. Trying hard to sell ULs and Seg. Funds despite financial situation of the client.
During Pandemic last year, I lost my job. Immediately an agent (has 12+ years with WFG) whom I took TFSA and RRSP, was visiting home to do a review. I was not in mood but he insisted to in person meeting.
They were flaming the fear that North American countries has bad reputation for job security. Only Financial Services industry can provide protect people, even in financial crisis people in WFG have thrived and they promised they has impugnable duplication system that works immensely for everyone. I have joined them and was working there for year before I decided to discontinue.
There are thousands who have benefitted from joining WFG (at least that’s what I learnt attending their meetings). The only problem I see is that there are too many bad ones than good ones.
1. Their system of “Fast start” and making recruit as an activity has falsely implied on people to make quick earnings. It is like any other business, if we want to grow the business you need to recruit is the justification provided from great mentors and coaches.
2. They really have poor understanding of product. To my knowledge I have interacted with few extra-ordinary people (SMDs or CEOs) who understood what product to recommend and how to design a product. Rest all 30 to 45 people depend on these 2 or 3 people. Often these other people tend to suggest very bad advise and/or product. They don’t do financial need analysis or consider the situation of client, its mostly the “one solution fits all”.
3. They also worry about activities and trying to meet goals. People at the bottom somehow want to be SMD to get bigger cut and get bonus, which I felt really bad. They really don’t care about products and services because they have backup to get information. They are worst so much so that they err in basics. How many of them will be scrutinized in a random audit?
4. They take ownership if their product does well, they will call to inform about grow. they will schedule in-person review to discuss about the grow, thereby asking about other solutions and products that they offer and they thing we are lacking from their financial advisor’s view.
My Agent despite having 12+ years of experience, was constantly critical about my investments in banks and wanted me to move to WFG offered solutions. I moved all my investments on his advise and simultaneous I was fortunate to have few other company sponsored and private investments. Currently all my other investments have outperformed WFG offered solution at least by 10-13%. It may be just my agent fault but I had enough.
I am not an agent representing anyone. Shop around and learning about stuffs is very easy in this internet world. There are pros and cons in every product. Don’t buy products from person who emphases only the pros. Take your time to decide which I felt not given by bad agents in WFG.
As far as joining yourself in WFG (especially Students and Immigrants), if you are absolutely sure that you can help people and can devote your entire time like some of the good agents, then you can join. Don’t join WFG for part-time or for easy money based on their prospecting stories (even if you are without job). You will simply loose your friends at the end.
Chris,
I love how you “bad mouth others” to drive business your way or diverting potential clients to you. This is so obvious….
You are in the financial business just like WFG. So, that makes you a competitors. I did a Google search on WFG and your conniving misleading YouTube info pops up. It’s a classic marketing 101 ploy and tactic.
The fact that you nonchalantly told people to go online and get a “quote” reflects that you either don’t care or that you LACK experiences in serving your clients properly…. This is a are huge red FLAG!!!! I don’t think you’re an idiot, but you do sounds like one!!!
Do you know even know what the difference types of “life insurance” are? Terms, whole, UL, IUL, VUL, and VIUL? The history and how these solutions evolved over time? Do you even take times to try to understand what the individual/family needs are?
There’s an old saying, “You know what you know, you know what you don’t know, and there are a lot of you don’t know what you don’t know” about WFG.
There’s a reason why WFG is as large or as big as it is. Obviously, when a company get this big, there will be challenges and misinformation. As the saying goes, gun don’t kill people. It’s people that kill. WFG is a platforms. There will be good agents, broker/dealers, investment advisors. You may be a BAD or and incompetent advisor too but that doesn’t mean the financial solutions you offer is bad…
Do you think financial institutions such as Prudential, Nationwide, Jackson, John Hancock, Transamerica, Pacific Life, Betterment’s, etc would associate their good names with WFG if as you eluded to that this company is a “SCAM”.
As with all financial businesses, WFG has rules, regulations, and compliance to adhere to. Those who broke those rules are heavily fined and/or terminated.
WFG is just a business platforms that oversees administrative functions. WFG don’t “hire”. Those who decided to join into this business model are NOT employees…. Let me be cleared… they are NOT hired.
Changing anyone with an employee mindset to a business-owner mindset takes time and discipline. Those that understand and willing to work will make it. Easy? No! Simple? Yes!
If you say flying an airplane is hard, then you haven’t given a pilot yet.
You are in an agency or “linear” model, and have no clue what an exponential business model looks like. You ONLY see the direct compensation percentages and are clueless as what the business building percentage percentage is….
You have a security license right? As a CFA, you should Disinformation.
So, my suggestions is before you judge a WFG as a whole because of one or two bad apples. Badmouthing a company without knowing everything about WFG is not only make you sounds like a fool but there are legal actions that be knocking your door.
It is clear you are an emotional fanboy of WFG, resorting to personal attacks when factual opinions are presented in a logical manner. These are the man’s opinion, period. your misuse of proverbs and big words are quite revulsive, yet laughable.
If an opinion different from yours ruffles you so much, then going back to your country of origin is an option you, where obviously tyranny still reigns. Over here we thrive and grow off diversity. If you love WFG so much, then make your own youtube explaining, logically and not emotionally, how this MLM outfit does it so good in you.
Hop this doesn’t hurt your feelings or ego
I don’t understand where you got that this person was from another country…. but ok.
Also, they are not entirely wrong in saying that he should be careful if he is spreading misinformation (or “opinions”) if the intent is to steer customers towards personal business. All agents have licenses regulated by the state that have very specific laws about defamation and twisting. I’m not saying that is the case, but can be a sticky situation for him if he work in the financial industry.
I no longer work directly with clients, and try my best to provide unbiased reviews.
your response is ridiculous just like the original post .
get some factual info as this post is loaded with misinformation.
they have access to more products and make more gains for people than banks etc .
Hi Crystal,
Sorry to hear that experience.
Most of the time it’s the people who represent the company who is creating negativity when they are not following proper business ethics. The insurance & investment industry is highly regulated in Canada and licensing put emphasis on what is best for the clients not on agent’s pocket. With WFG, the likelihood of non-compliance is high when associates (not licensed yet) start to approach prospects and apply their own marketing pitch and not the company’s proper business approach. The history of WFG can be traced online at Wikipedia and you will see more info why the pros & cons.
Hope this helps.
Thanks Chris for your posts.
Ted
Thanks Christopher, I joined WFG through a friend a couple years back before I started my college in Finance Major. They treated me very kindly and signed me up for online self-study training, and I supposed to learn on my own, and it’s ok for me because I love learning new things. What bugs me is the pressure to get my license and start recruiting as soon as possible. I was in no hurry to make money until I know exactly what I was doing in terms of understanding the products and service inside out. I did not quite fully understand all the learning concepts on my own since my education was limited to high school level. My upline tells me I don’t need to understand how it works, I just needed to bring in friends and family member and they would take care of everything. I didn’t really like this concept, and I don’t think it is for me. My uplines were extremely nice and I am still grateful to know them, but the system structures is not aligned with my values. I worked in sales and personal services prior to joining WFG and I care about my clients dearly, and will never sell them something that I don’t have knowledge of, because of my own bad experience with MLM. I got sucked in a very bad deal with CEFI years back and couldn’t get out of that contract till this day, (the sales rep was my dad’s friend at church, he was a good person and probably thought he was helping us, unknowingly got us a sub-par products at a very expensive cost). This business models probably works for a lot of people, but just not for me.
Solutions evolved and changed all the time. This is how products/solutions providers compete among themselves.
You dad’s friend offered the best possible solution that was available and that he understood at that point in time with the information he had about your needs. Would you agree that there’s no perfect solution. Just the best one available at that point in particular time.
That’s why it’s important to disclose as much information about your situation/need to him as possible.
Good and experienced agents take time to ask questions and understand your situation and need before offering a solution.
I have to disagree with those directly above that have represented the company with dignity and class (something that, imo, you are lacking sorely), and done a much better job in educating you about what WFG ACTUALLY does, by saying the following: This is such a badly written article, with so much inaccurate information that I don’t even know where to start.
As a person that has benefitted from WFG’s financial education and services as a client, with friends that are agents – I feel compelled to be more informative. First – WFG is technically a brokerage, not a MLM – as the main and most significant feature of MLM’s is the fact that they deal in direct sales – which, to my knowledge, WFG does not. As far as I know from what I am told, and from the financial education that I was given, is that WFG doesn’t own any of their “products” (insurance, investments, etc.), so that they can unbiased in picking and choosing what is best for the client. From what I was shown, as well as what I have been informed of by the agents that I know, is that the potential client is shown the information, and they choose whether or not to move their money. I can say that, once I was shown that I could save a bunch of money with their insurance, investments, and mortgage possibilities – I didn’t NEED to be “sold” anything! Of course I wanted to go ahead! Complete no-brainer! Do they learn how to “close” ? I imagine they would! Is that a bad thing, when you are passionate about something, and believe in it in the way that the agents that I know do? (BTW – they have seen articles like this, and worse, and just brush it off, but I couldn’t – so I am responding on their behalf)
The BEST part? And also a part that you, for some strange reason do NOT mention (unless I missed it due to being so distracted by the incorrect information, which I will admit is a distinct possibility), is that the business model pays the agents through these huge financial institutions so that they DON’T need to charge the client! I received a financial education that is better than anything i’ve ever had. All I did was sit in front of an agent that was very professional and knowledgeable. She answered all of my questions and was very transparent, and even went through the presentation a second time for me because I found it so fascinating. I also saved a lot of money per month (how much is none of anyone’s business) and it didn’t cost me anything!
Did YOU sit in front of one of these presentations, I wonder? If you haven’t, then I have NO clue as to how you could possibly say you have done responsible research. I had to pay ONE penalty fee that was charged by the BANK that I previously had my mortgage with initially (NOT WFG) in order to get a MUCH better mortgage rate (one that is exclusive to being a WFG client), with a different bank that saved me so much money over the amortisation of my mortgage that the penalty was a drop in the bucket anyways!
This “article” is misleading, irresponsible, and is, frankly, why we can’t have nice things. I think it’s disgusting that, as opposed to elevating yourself and marketing yourself positively, you stoop to slandering good companies, with grimy marketing strategies of your own. Maybe just work harder?
Also – I see you have defended your position above under the guise of “it’s my opinion” However, if you are going to take a public stance on something, the burden of proof is up to the one that is giving their opinion. What I see here is all conjecture, with you what seems to be attempting to take the moral high ground in some cases. The fact that you seem to flip flop and look as though you are trying to take the position of “virtuous high road” in some cases makes me question your integrity even more. This type of justification is why Clint Eastwood, (as Dirty Harry) says “opinions are like a$$holes, everybody has one”. Seeing as I see the word “SCAM” spelled out multiple times in the very beginning of your article – it hardly gives away your incredibly biased opinion – which seems absolutely laced with confirmation bias.
Wow… just wow! A review based on a very limited knowledge of the way that WFG works as a company.
WFG’s sole goal is to save people money and if they are interested join the company. I have seen many plans where families are saved over $1000 a month but normal is in the hundreds. We offer a free financial check-up and if we can help we do, if we can’t we don’t. We also can help people get in touch with debt consolidation services and do so if someone is in a hard place.
Recruiting is not necessary with WFG, you can achieve higher commission levels without it. But it is much easier to do with a team. Recruiting does not come with any financial benefit, only that if you are licensed and your recruit is not you will get the commission they would receive until they get a license.
Our structure as a company is very similar to that of Real Estate brokerages such as Remax or Royale Lepage, I’m guessing they’re huge scams too, with their MLM structure where a small commission goes to the agent and the broker gets the rest? The difference is that at WFG you can become a broker and your broker will help you get there.
If a (TA) training associate (lowest level 26% commission) helps a family, it is done mostly by their trainer, usually and MD (Marketing director 52% commission) or an SMD (Senior Marketing Director 64% commission). When the commission is paid out the TA will get 26% even though the MD say in this case did more, the MD will get 26% and that MD’s, SMD will get 12% as they are still involved in training the agent and building the team. This is no different from a commission/pay structure anywhere else. Does the manager at McDonalds make more money than the guy working the counter? Absolutely, doesn’t the regional manager make more, for sure!
We have access to many plans and opportunities that you cannot get elsewhere, not to mention that we don’t judge a person by what they make. We can help someone invest $500 if that is what they want. Other places often want a minimum investment of often more than $10k to help you.
We recruit because we help families learn more about finances and help them save money, the more people we have the more we can help. It’s that simple. Jeff Bezo’s didn’t build Amazon without a work force? It’s that simple.
Also rather suspicious that you work for another company that would be competition for WFG? Kinda means that bad mouthing another company works in your favour? Even if it is a complete misrepresentation of the company.
Hey.
I appreciate some of the information you have provided, and I am pleased that you have made it clear that WFG is legitimate and legal.
I agree with you about the commissions rates, and the affordability of our products. What I don’t appreciate is how your speaking about our company, because you don’t understand our company mindset.
You have been in the industry for 11 years, and you practice “Scarcity Economic” services. For you it’s the higher commission and the easiest (aka most affordable) packages to sell. The nuances and caveats of those packages are more specific and results in the clients not receiving what they expected, which has caused this issue regarding the younger generation avoiding insurance. For them, such business practices has resulted in them viewing all insurance as a scam.
WFG however is more into the resource generating economic mindset. It’s true that WFG has lower commission because your right, we advise the more expensive packages. But with our packages, we offer solutions that allow you to generate wealth, that can be accessed for buying homes, going on vacations, covering medical expensive, and leave the next generation heirlooms without loosing everything to government taxation.
WFG is not just another financial company. It’s a DIFFERENT economic mindset, a different culture, a different and IMO better financial solution. At WFG we don’t need to sell anything, it’s the clients choice, and if they can’t afford the package they want, we offer them an opportunity to afford it.
This does not mean it easy, or respected. It requires us to earn the trust of the youth that the previous options have shattered.
WFG is an international company, backed by Aegon, owned by TransAmerica. This makes us a global billion dollar company, able to provide packages from multiple markets, instead of just one.
We also do NOT sell from one company… we offer solutions from 77 companies. This beats your advised company only offering from 20 companies.
Also, your understanding of how we are paid seems both inaccurate and basic.
So at this I’m going to stop. I don’t expect a response, might pop back at some point tho idk. But basically, your advise to avoid WFG comes down to your inability to understand our methods, not our business practices. You should try to work at being more clear that your advise isn’t just personal opinion (which is totally cool), it’s built on your misunderstandings (not so cool).
Thanks for hearing me out.
End Scarcity; it causes war
B.
Hi Chris,
Hope you are doing good. Can I please have your email id so that I can shoot an email with an investment and insurance-related question? Would appreciate the help. Thank you.
Sure, you can find it on my contact page!
Hi Chris,
I recently tried signing up for life insurance with WFG, I was told it would be universal life no medical. Then I get a call form the advisor saying that I would have to do a full medical because I was randomly selected by the computer?? Is this a thing? It seems a little odd to me. The premium was taken out of my account less than 24 hours after I signed the application, is this also normal?
I think you submitted the application to IA. It’s not your advisor’s mistake. IA system randomly select some application for medical. Even if the advisor is from wfg or not
Hi Chris
I’m new in this business. I registered for CIFC and the classes are fine. But I’d rather not to get involved with this MLM model.
Can I just get my CIFC license and work for other possible options or even for myself?
I’m an international student. How do you see this way as a job for future?
Thank you in advance.
Yes, you can still get the license then work for someone else in the future if you don’t like it there. For the job as a future it’s tough to say, there will always be a job for financial advisors, but it is a shrinking industry, not growing as younger people are moving away from advisors.
Chris, you know what, Let’s agree to disagree!!! It’s a waste of time for both us to keep writing back and forth. I know the truth and the good about WFG so it doesn’t matter what you write. It will not change a thing. Good luck to our business.
Well said Rick…I’m with you. Anybody can post anything on the internet and its their opinion. I wasn’t going to post anything here but you (Rick) inspired me brother. I’ve been involved with WFG for over 10 years, mostly as client and now as a part-time agent. The things I’ve learned about money and finance, leadership, communication and building good relationships with people from across the country…people who believe in me and pour their love and wisdom…all that is priceless…at the same time earning some part-time income that has allowed me to pay-off my bad debts, save a little on the side and all because of the associations I have made through this beautiful community of people that WFG has created. I recently attended a Tony Robbins Seminar in Las Vegas for FREE because I did some thing that WFG asked me to do and I was able to attend this $5000 seminar for free.That seminar actually MADE me want to become a better husband, a better father and a better human being (I’m crying as I write this)…but this is what WFG has done for me. You guys just need to make your own decisions…I’m pouring my heart here because I believe in what WFG stands for, I believe in the people and my mentors who are leading the company, I believe in the companies that we represent and I believe that I am a better person because I’m associated with the PEOPLE IN WFG. Its not WFG, it’s the people that make it good or bad. I’ve had both good and bad experiences in WFG and have read many of these articles like Christopher Liew, CFA’s yet I’m still in WFG as a client and as an agent….Why is that? Ravi Padarath 403-680-7284 https://agents.wfgcanada.ca/ravineet-padarath
Hi Chris,
Thanks a lot for sharing your views. I am new to WFG and just got recruit. I am a skeptic but the reason i just is because most of my relative did and they are doctors so i kinda just follow along. But i will keep your words in mind and if the job isn’t mean for me, i will leave. Meanwhile, i will tried to gather knowledge as much as possible for my journey ahead.
Would you be able to give me some advices if you were me? Like what to study and stuff?
Thanks
Hey Joe, that seems like a good plan, you might as well see what it’s like and experience it for yourself. I would study beginner investment and personal finance books, learn about ETFs and how to set proper risk tolerances and goals.
Chris, chris chris!!! You still haven’t answer my questions to you and yet youve answered each and every post here especially the ones that are clueless about what the company WFG is all about. All the post here that bad mouthed WFG are clueless of what the company is about and you love every single one of those. I am not trying to convince you, I just need to know why you dont answer my questions. Maybe you didnt read my posts because it was a long one and have very legitimate points. But unlike you, I don’t make an article or you tube videos just to discredit WFG. You said it’s your opinion, so your opinion is that WFG is bad, scam and stay away. Better come to you??? Lol
As a business owner, it is important I spend my time wisely. I suggest you do the same and focus on growing your own business instead of obsessing over this post.
Im satisfied with my business. Im hapoy with everything is. To you spending wisely is to discredit the company that gives me the opportunity to have my own business. To you spending your time wisely as a business owner is to sway people who are clueless and feed them with more misinformation and fake news. What would you do if people are spreading lies and bad mouthing your company or your business and your means of livelihood to potential clients and business partners? Would you just say oh “it’s ok!”. Are you just gonna do nothing?
I can point you in the direction of at least 10 other blog posts and Youtube videos that are all saying the same thing about WFG, some of them much, much worse than what I’m saying. Are you going around to all of these other people and commenting on their posts and videos? I clearly state that WFG is not a scam, but there are so many that think it is. Why do you think that is?
People think its a scam because of people like you who are clueless and have nothing better to do than spread lies and mis information like this. I see you blocked the reply button so I can’t respond. You clearly state that its not scam but have the word scam as posterized and in big letters to insinuate that it is. This is why (again) cluless people like you think it is a scam because you want them to go to you and be your client. You’re just too scared to come out and say it. Just say you want them as your client. Tell them you want them to see what you have to offer instead of creating something like this to promote yourself. Say what you really want and just say you want them as your clients instead of trying to discredit WFG. If you’re concern and really believe that WFG advisors are bad then advise them to file a complaint with the insurance comission.
Oh I see , chris , I got what you mean , Rick still didn’t get it at all .
Chris just want to take care his own business , Chris business involve with the negative people of WFG so Chris have-to force himself to write-down unsuccessful people experience on WFG so Chris is going to make some advertise more on this website with support negative people’s mind .
RIck this is too easy to let you understand right . Chris wants do business too :))
Hi Chris,
Hope you are doing good. Can I please have your email id so that I can shoot an email with a question? Thank you.
thanks brother
i also want to ask, in NYC, how can i study for CFA? i want to self study so like what kind of books, videos and stuff would you recommend.
Schweser is a good one! I used Schweser for Level 1 and Level 2 I didn’t even touch the textbooks. L1 and L2 are all about practice problems. L3 I would recommend studying the textbooks closely and practicing old exam questions – and figure out how they score it also! They are looking for very particular answers.
Great article. I had some red flags come up when one of their agents tried to recruit me. After doing some research about WFG, I found out that I was right to be leery of this company. You are correct when you say there are better options out there.
Thanks Dave, glad you liked it!
Hi Chris,
I liked and subscribed after watching your youtube video about WFG. Excellent work.
I am new here and I don’t know much about you. I only know that you’re not happy about WFG’s business model (even the link on this page has the word “scam” at the end). So please don’t give us the “I am neutral, just informing the public about this company”. Your youtube video about WFG also has the keyword “scam” in it! Kudos to you for bringing traction to your channel and earning many subs, including me. I have nothing but respect for that.
However, you’re clearly stating in the video that WFG is not a scam, but you think the MLM business model is scammy and you recommend people not to buy any products from WFG, but rather invest some time into learning how to finance your own portfolio/bank accounts.
Chris, you know most people are not smart with their money, maybe close to 90% are just living off paycheck to paycheck. These people need help. A lot of them are good people who deserve help from the financial-savvy. Banks are using their funds without them even knowing. WFG products offer that “help”. They’re actually very good products with reasonable prices that offer piece of mind to the customers.
I am a new associate in the company, and just had a lovely interview with their recruiter. I will not disclose any names. I wouldn’t even do the interview if the company has a “scammy” business model.
So far everything is perfect. The recruiter even did something extremely nice for me. I will not disclose that either.
I think if you (plural for the audience) have any common sense, you would know that this is a legitimate, successful company. WFG is backed by whales in the financial sector; including RBC, BMO, TD, Franklin Templeton, etc. These guys are no joke. They wouldn’t back WFG if the company had a “scammy” MLM model. There are numerous successful businesses that use that exact model; it’s nothing new. MLM is NOT a pyramid scheme.
Out of 976 reviews on Indeed.ca, 473 are 5-star reviews, and 243 are 4-star reviews, so basically 700+ reviews of 4-star+.
The most likely reason you have this page still posted and your youtube video still posted is to gain traction to your channel. In essence, you are doing exactly what WFG associates are doing, selling good products! Your video is a good product to educate the masses. However, the biggest concern I have for you, is that you’re building a feud with a big company like WFG, and hurting your potential growth as a content creator in the process.
If I were you, I would create a new awesome video about WFG, and how absolutely nothing is wrong with them. Make an apology, and maybe you will get thousands of subs from their company and other associated companies! It’s a win-win for you.
Cheers my dude, and good luck in your youtube business. I will make sure to click the notification bill to see your new vids.
I appreciate the lengthy post, I wish you good luck with your new business. I was not trying to make enemies with anyone, but was merely stating my opinion on WFG. Thank you for subbing to my channels, I appreciate it!
Hey Chris,
I appreciate your candid review. It is pretty good.
However, WFG has no products that they own. They are associated with 60+ reputable companies and products in Canada. In the US, there are 300+ associations.
Not buying from WFG agents is okay but not buying any of our products doesn’t make sense to me. Because we partner with BMO, TD, IVARI, IA, IA Financial in Canada just to name a few. So you will look for all the companies that associated with WFG and avoid them. Is that what you mean? Really confused.
I can walk you through all the companies that are associated with us and so you can avoid them in the future. Please call me at 416 418-5264
Hi Linda, thanks for your response, I will consider changing the wording in my future revision in a few months.
Hi Chris,
I wished I read this article before giving my “friend” my credit card information yesterday.
She told me she left her job during Pandemic and she started her own business and wanted to chat with me. She told me she spent $100 a year ago and learned a lot about finance and she recommended me to do the same. She said see if you find it interesting then you can work for yourself. she said it will only take 3 mins in front of computer and I thought she was going to give me a website and I will pay for classes. She called me on Zoom instead and asking for my SSN and DOB! I trusted her and I asked her what is this information for? She said just to make sure you don’t have any criminal records. I didn’t know why She needed to do that and I told her I m planing to buy a car soon, do not run credit check on me because it will reduce the point every time you run credit check on someone. She promised she won’t. Then she quickly entered the rest of the information and clicked sign and told me it’s all done. The same day WFG company sent me an email saying I’m now their associate!! WTF! This friend never told me that she works for WFG! She never told me she was using my information to apply to be an associate of this company! And never disclosed any non refundable payment policy! Also the background check is including criminal records and credit check!! I felt cheated and started googling WFG and holy shit! Most of it it’s negative, even in other languages!
Wow that’s terrible to hear! Contact the company and explain your situation, and see if you can get your money back. If you didn’t authorize it then you should be ok. That’s not a very good “friend” though, but she’s probably in a desperate situation as well.
I am sorry to hear this happened to you, and I would advise you ask your “friend” for her uplinks contact information about this. This is not correct policy. I am sorry for your experience.