Watch Out For Fraudsters!

Avoid Emerging Fraud Trends

By Fred Hymans, CFP ®

By staying informed of current and emerging fraud trends, you can protect your assets and personal information and reduce your risk of falling victim to a scam.

Below is a list of four common fraud types and trends that have been known to target individual investors.

1. Romance Baiting and Cryptocurrency Scams

In romance baiting types of scams, scammers build online relationships with their victims-sometimes over a period of months-to lure them into fake investments, particularly in cryptocurrency.

These scammers usually make initial contact through social media outlets such as Facebook, LinkedIn, or Instagram, or through text messages. After the scammer builds the relationship, the victim is offered an investment opportunity and led to believe they’re making money, only to be told they need to front taxes or pay fees before they can process a disbursement. The scammer attempts to get as much money from their victim as they can before cutting off all communication and disappearing.

Red flag: An online love interest or friend is pushing investments, especially in cryptocurrency. How to protect yourself: If a newfound friend or love interest begins pressuring you to get involved in a great investment opportunity, cease communication and seek advice from your Financial Professional.

2. Imposter Scams (Fraudsters Pose as Banks, Regulators, or Law Enforcement)

In imposter scams, scammers call, text, or email their victims pretending to be from a legitimate financial institution or government agency. They may claim that there is a problem with your account or that your information is being used for criminal and fraudulent purposes.

A scammer relies on their victim panicking, providing personal information, wiring funds, or even meeting the scammer in person to hand over cash, gift cards, or gold.

Red flag: The impersonator demands immediate action, claiming it’s the only way to safeguard your funds or reputation. How to protect yourself: Hang up immediately. No law enforcement agency, regulator, or financial institution will require immediate action. They will also never ask you to convert funds or hand over assets at a designated location, such as a parking lot.

3. Account Takeover

In account takeover scams, hackers steal login credentials (often through phishing or malware) and take control of brokerage or bank accounts. Once inside, they make unauthorized trades, transfer funds, or even change account settings to lock the real owner out.

Red flag: Unexpected login alerts, password change notifications, or missing funds. How to protect yourself: If you receive an email or text claiming to be from your financial institution and asking you to download or click a link to resolve an issue with your account, do not proceed. Visit your institution’s website directly, call the number on the back of your card, or contact your Financial Professional.

4. Tech Support and Remote Access Scams

In remote access scams, victims receive a popup alert, phone call, or email claiming their account or computer is compromised.

The scammer often poses as tech support personnel and tricks the victim into giving the scammer remote access to their computer, leading to drained bank accounts or identity theft.

Red flag: Popups or calls from “tech support” asking you to click links, download software, or share passwords. How to protect yourself: Never share passwords or multi-factor authentication codes, and never download software from anyone claiming to be tech support. If you receive a popup on your computer or phone, your computer may be infected with malware or a virus. You can have it diagnosed and repaired by a trusted local technician.

Tips to Protect Yourself and Your AssetsVerify everything: If you get an urgent request, call the company or person back using a known phone number-not the number provided in the message.

Slow down: Scammers often create a false sense of urgency to get you to act fast before you have time to think. Take your time.

Use strong security: Enable multi-factor authentication whenever possible, do not reuse passwords across platforms, and monitor your accounts regularly.

Educate and report: If something seems off, report it to your Financial Professional, financial institution, or legal authorities.

Fred Hymans, CFP®, is a Certified Financial Planner Practitioner who works with seniors to help them plan for retirement and leaving a legacy. Fred is a proud member of Seniors Resource Group and has his office in Rocklin, CA. He provides fee-based investment services as well as tax, estate, and retirement planning as part of his comprehensive planning process.