By Amber Shrosbree, CFP®

With the rise of AI and no shortage of creativity for scammers and fraudsters these days, we have come across story after story of ways that even the brightest of people have fallen victim to scams and fraud.  As much as each of us would like to say: “that will never be me”, it is important to remember that 10% of American adults join the ranks of scam victims each year, and 1.3 million children have their identities stolen annually.

Don’t be too quick to assume that the elderly population is the most at risk, because according to 2022 fraud complaints lodged with the Federal Trade Commission, the highest number fell between ages 30 and 39, closely trailed by ages 60-69. This just goes to show that scammers do not discriminate amongst age, and that we all need to be wary, no matter how “tech savvy” we view ourselves.

We have all learned the obvious red flags: strange email handles, asking for payment or personal information via email, phone calls from numbers you do not recognize involving payments due, or winning a prize. But even with all of this knowledge, scammers know that as soon as emotion becomes involved, the lines get blurry.

The Alarming Phone Call 

Imagine getting a phone call with an urgent voice on the other line claiming that your daughter was in trouble and that you needed to provide funds immediately to ensure that she is ok.  Although the logical path would be to question this unknown caller, their story is just plausible enough that you jump to the emotional and very human reaction that any parent would and ask what it will take to help her and how quickly you can do so. Before you know it, you’ve wired most of your savings to the voice on the phone willingly, knowing that you are helping your daughter. Shortly after hanging up, you find that your daughter has no knowledge of this and was never in trouble. 

The Online Love Interest 

That scenario doesn’t connect with you? Okay. Imagine now that you are a widower, have been for some time, but you are ready to get back out there. It’s been a while and the dating world has changed drastically. You’re using an app and have been chatting with a lovely woman for almost a year. You’ve shared a lot about yourself, and trust has been built between you both. You feel connected to this person and a void has been somewhat filled. You may not be in love, but you are in what I like to call, the “heavy like” stage. She messages you one day admitting she’s in a bit of a bind financially. She has become a big part of your life (even if it is not in person), and she has never given you a reason to doubt her throughout your entire year of conversation. You feel that you know her better than anyone at this point, so you are more than willing to share bank account information with her so that she can use it to float some expenses from time to time. But when you are slammed with tens of thousands of dollars in credit card debit and wire charges, you realize you have been what we call “catfished” or tricked by an online relationship, and this person is not who you thought she was.   

The Billing Text 

After reading these stories you’re thinking the emotional angle would never fool you, you’re young and teach savvy – you never even talk on the phone. Fair enough.  But what if you got a text from your wireless provider one day saying you have an outstanding payment due? Your card information is pre-saved in your phone along with all of your login information, so you never have to type this information in. Transactions on your phone barely require a thought. Your cell phone company does in fact have your cell phone number, so it’s not odd that they can contact you via text. You don’t pay much attention to your cell phone bill, so when your carrier says you owe $50 you just handle it quickly. It must be an annual charge. One, two, three, done. You quickly check your phone and see a fraud alert from your bank. Was a $5,000 charge authorized? No, it was the scam artist you just gave your debit card information to. Your bank protected you this time, but you might not be so lucky the next.

What could they have done differently?

In the first story, the victim could have hung up immediately from the unknown number and called his or her daughter directly to avoid sending the wire. In the second scenario, he broke the rule of giving out bank information over unofficial online chatting with someone who technically falls into the “stranger” category. In the third, although the amount seemed harmless and the text seemed to make enough sense, you responded via text message with personal bank information, rather than calling your carrier directly, or logging into your account online to verify if you truly had a balance due or not.

Whatever your age and whatever your personal life looks like, there’s a scam out there for you. Always slow the process down. It is far better to take the time to do your due diligence than act too quickly and make an irreversible mistake. Look for official letters, then verify the address and phone numbers and websites on those letters to determine if it all lines up. It is better that you initiate any calls using verified numbers that you already have, rather than trusting the number giving you the phone call. Sometimes text messages regarding billing are legitimate, but not if they are asking you to text back with any information. When in doubt, pick up the phone and call whoever scammers are claiming to be to verify things for yourself.

If you ever find yourself in a situation similar to any of these, or you think that someone is targeting you with a scam or fraud in any way, please feel free to give us a call. We would be happy to act as a sounding board as you navigate through your own unique scenario.