Keeping Assets Safe
By Angela Bowman
One of my favorite things to do in this line of work is help people, whether it means helping a colleague learn about irrevocable trust tax returns, walking a client through a complicated financial plan, or just giving general advice to someone who asks. One area in which, unfortunately, we are finding we need to help out more and more often is protecting clients and those we love from scams.
When I first started in the trust world, it was easy to spot a scammer. An email would come through with grammatical errors, saying a long-lost relative was leaving you money, and all you had to do was send them some money. Most people are familiar with this type of scam, and that is why you typically do not see it occur anymore. Instead, scammers have had to become more sophisticated in their ways, and it is becoming harder and harder to identify them. Below I am going to give a few examples of recent scams we have seen, as well as ways to protect yourself and loved ones from them.
“Too good to be true investment!”
This may be one of the hardest to spot, as many times, it is a friend or loved one who introduces you to the investment. They have given a scammer funds and in return have received a “statement” showing returns often two to three times the original investment. They then are asked to invest a little more and a little more over time. Each time, they see a crafted statement with fake returns. The scammer then asks if you have any family or friends who would be interested in investing and asks for the contact names of a few people. Soon, each investor has now lost, at times, tens of thousands of dollars. We have seen this type of scam happen with cryptocurrency as well as a start-up business investment.
“Send me a deposit and…”
Social media can be great for keeping in touch with loved ones and even finding advice for questions you have. The issue is that you don’t always know 100% who is answering you. As you all know, the real estate market is tight. It is harder and harder to find a new home if you are looking to move. You post something online about looking for a home or place to rent and people have asked you to make this “shareable” so more people will see it. Soon, you start a conversation with a lovely person who tells you all about how they have a parent who is moving into assisted living and tells you all about the home that you can buy or rent before it is listed…. You just need to send a small, completely refundable, deposit. The person sends you pictures and it looks like your dream home. You don’t want to lose the opportunity so off goes the deposit. Soon after, the social media account is closed and you are out your deposit.
“Quickly send me money or give me information!”
You receive a phone call and on the other end is a person from a bank, credit card company, or the like saying that they have noticed some suspicious activity. They need you to verify your bank name, account number, address, DOB, etc…. Many times this comes with much urgency. They tell you that your account is down to $100, and they are seeing funds being withdrawn currently. The only way for the bank to put a hold on your account and begin the process of refunding you the funds is for you to verify your information immediately! Soon, you have given the scammer all the information they need to access your account or open accounts in your name.
Scams and scammers will continue to evolve, but there are a few simple things that you can do to protect yourself. You should always remember to keep your information and data protected. This includes keeping antivirus active on your computers, using strong and unique passwords for all accounts, and always remembering to think before clicking on any links, emails, or text messages. In addition, be sure to review your privacy settings on all your social media accounts. Review who can see what you are posting and who can share that information.
If you receive a call, we also recommend calling the person or institution directly. Find the number that you know is for them and use that to verify what the original caller discussed. Doing a quick search yourself can also help verify what someone is saying. Getting as much information as possible about an investment, or the person contacting you, and verifying what you are being told will go a long way in keeping your data and assets safe. It is also important to discuss circumstances with family, friends, and trusted advisors.
If you do happen to find yourself in one of the above or another situation, don’t be afraid to ask for help. You should contact your financial institutions to let them know what happened. This way, there can be added checks on your account to review for fraudulent activity. You should also contact your local law enforcement officials. At TCV, we unfortunately hear more and more about these circumstances and are always here to give you our perspective. Always remember the adage – if it sounds too good to be true, it probably is.