I recently attended a seminar about financial scams.   The common term used for this special brand of ruthless criminals is “Bad Actors.” I think we need a new term here – because bad actors make me think of a middle school play. These criminals are increasingly sophisticated and constantly updating and broadening their approach to improve effectiveness.  Here are few simple habits can help protect your money, identity, and loved ones.

How Bad is the problem?

In 2024, consumers reported more than $12.5 billion in fraud losses to the Federal Trade Commission, including $5.7 billion from investment scams. The FBI also reported over $16 billion in internet-crime losses, with people age 60 and older reporting nearly $5 billion in losses. 

1. Slow down when something feels urgent

Scammers often create pressure with phrases like “act now” or “your account is at risk.” If something feels urgent, pause, hang up, and verify the request through a trusted source.

2. Never share sensitive information from an unexpected request

Never provide your Social Security number, account login, passcode, or financial information in response to an unexpected call, text, or email. Contact the organization directly using a verified number or website.

3. Watch for unusual payment requests

Be cautious if someone asks for gift cards, cryptocurrency, wire transfers, payment apps, or cash withdrawals. These payment methods can be difficult to reverse.

4. Verify investment opportunities and financial professionals

Question promises of “guaranteed,” “risk-free,” or unusually high returns. Confirm that a financial professional or firm is properly registered before investing.

5. Strengthen your digital defenses

Use strong passwords, turn on multi-factor authentication, keep devices updated, and avoid links in unexpected messages. Review account activity regularly.  Consider a password manager. 

How to Help Others Avoid Scams

Older adults may be targeted by scams that exploit trust, urgency, isolation, or unfamiliar technology. Respectful, plain-language conversations can help loved ones recognize red flags before money or personal information is at risk.

• Encourage loved ones to pause before sending money or sharing information. If they can not phone a friend and explain the situation – it is probably a scam.
• Agree on a simple family rule: urgent money requests should be verified with a trusted person first.
• Save trusted phone numbers for banks, advisors, credit card companies, and family contacts.
• Respond with support, not judgment, if someone has been targeted.
• Print out the next last page and have post it near their computer. Ninety percent of these scams start with an email!
• Consider removing them as an administrator from their primary computer.

If You Suspect a Scam

If you suspect a scam, contact the financial institution involved, change compromised passwords, and report the incident to the appropriate authorities.  Please - contact Leading Edge for a second opinion.

Concerned about a loved one? Share this article and encourage them to call a trusted person before sending money or sharing personal information. 

Bottom line: Slow down, verify requests, protect your information, and talk openly with the people you care about.

 

 

Scam Stoppers:

• Ask for their number to call them back
• Tell them you are going to add someone to the call
• Do not give them any information
  
  

(Warren) Paul Brockett, CRPC®