Identifying and Avoiding Banking Scams
Welcome back to Chris’s Client Corner! Let’s start this one out with a hypothetical scenario:
Imagine you just sat down on the beach to kick off your first vacation of the summer when suddenly your phone rings. You answer, and someone on the other end states that your bank account has been compromised and you must provide them with your personal information immediately. They continue to add a sense of urgency with each word, and you give them the details they are looking for to prevent further damage. The call disconnects and you try to wrap your head around what just happened. At first, you breathe a sigh of relief thinking that you just saved yourself from further damage. When, in reality, you just fell victim to a scam. You soon realize that the scammer has gained access to your accounts, and you spend the rest of your vacation trying to clean up the mess they made. Not an ideal start to the summer.
While that scenario might seem a bit silly, it is becoming more and more common every day. Scammers are popping up and using every channel imaginable to get in contact with you and convince you to give them what they are looking for. Not only that, but they are now savvier in the ways they present themselves. These scammers can pose as anything from a bank employee to an innocent civilian looking to find love (and eventually swindle you out of your savings, more on that below). They conjure up false claims and elaborate stories to seem legitimate and will try every trick in the book to get what they want from you. Gone are the days where you could easily identify a potential scammer. Now it takes an extra level of skepticism to truly know when you have become the target of a fraudulent scam. Let’s dive into some ways that we can prevent that from happening to you.
First off, be very suspicious! I know that’s easier said than done, but if you treat every random call, text, email, social media message, with a little more skepticism, you’ll naturally filter out those that aren’t real. Again, these people will often pose as someone else, so don’t just take their word for it when they tell you who they are. Sometimes, they can even show up as a trusted number on your phone’s caller ID, so be careful when answering unknown numbers. If you are not 100% sure that person is who they say they are, hang up and call back using a known number for the organization they were calling from. For example, some scammers will impersonate a government employee in an attempt to get your personal information. Always be skeptical in those scenarios and hang up and call back the government agency directly if you have to.
Never respond directly to a text or email asking for personal information and hang up immediately if asked for those details over the phone, especially if you are unsure who the person is on the other end. Be extremely cautious when sharing personal information in general, and never disclose any of that information on social media or in a public setting (or on public Wi-Fi networks). If you must send confidential information, always do so in a secure manner, and refrain from texting those details.
When it comes to social media, there are some additional things to note. For my active social media users, It’s no surprise that there are a multitude of fake accounts out there. Most of them are easy to detect, but some can come across as another average user with nothing to hide. Those are the tricky ones. In a recent Wall Street Journal article, a 75-year-old man shared a story about how he was scammed out of more than $700,000 over several months. What started as an innocent LinkedIn connection quickly turned into a love interest. This seemingly innocent connection slowly earned his trust over months of texting back and forth. She detailed how she had become wealthy through trading futures, and eventually convinced him to send money to her through a website that, unbeknownst to him, was a scam. You’re probably thinking “that would never happen to me”, but this has already happened to millions of people globally. Typical targets are those that are elderly or less technology-oriented, but many victims are well-educated folks that get manipulated over time.
While all of this can be a bit unnerving, it is preventable in most situations as long as you stick to the best practices outlined below:
To reiterate, always be suspicious of unexpected or unsolicited calls, texts, and emails asking for money or personal information.
Be extremely cautious when sharing sensitive information and do so in a secure manner when needed.
Be aware of phishing attempts and malicious links in emails.
Look for typos, a sense of urgency from the sender, and odd email addresses when identifying phishing scams. Never click a link in a suspicious email!
Check your email and account statements regularly for suspicious activity.
Keep your technology up to date and use strong username and password combinations.
Consider two-factor authentication for accounts with sensitive information.
Never let an unknown party remote into your computer.
Ensure that you are using secure websites
Check the URL to see that the site begins with https rather than http. These sites are generally considered safer.
In summary, be suspicious, be skeptical, and there is no such thing as being “too secure” when it comes to sensitive information. If you are ever in a position when you think you have fallen victim to a scam, immediately contact your financial institutions and credit agencies to ensure your data is safeguarded. And of course, please give your trusted financial advisor a call for further guidance.
Let’s stay scam free this summer!