Protecting Yourself from Financial Scams: Helpful Tips to Safeguard Against the Latest Threats

Financial scams have become increasingly sophisticated, especially for older adults. According to AARP, people over 60 lost $600 million to scams in 2020. Fast forward to 2023, and boomers were defrauded of over $3 billion, according to the New York Post. With an 11% increase in fraud targeting those 60 and older, it's crucial to understand how to protect yourself from these evolving scams. Below are some common tactics and essential tips to avoid falling victim.

Common Types of Scams

Scammers often rely on emotional manipulation and create a sense of urgency to trick people into making hasty decisions. The most common scams include:

• Online shopping scams: Fake websites that look legitimate but are only set up to steal your money or personal information.
• Romance scams: Con artists pretending to form a relationship, then asking for money.
• Prize and lottery scams: Fraudulent calls or emails claiming you've won something—if you just pay an upfront fee.
• Government impersonation scams: Scammers pretending to be from agencies like the IRS or Social Security.
• Tech support scams: Fake alerts claiming your computer has been compromised, with the goal of gaining remote access to your devices.

How the Phantom Hacker Scam Works

This scam typically begins with an unsolicited phone call, email, or pop-up message on your computer urging you to contact a support number for help. Once you engage with the scammer, they ask you to download software that gives them control over your computer. They then "scan" your computer and falsely claim that you’ve been hacked or are at risk.

Next, they instruct you to open your financial accounts to verify unauthorized activity, which allows them to see your assets. The scam escalates when the victim is told to transfer funds to a "safe" account—often under the pretense of being from a government agency like the Federal Reserve. Victims may receive counterfeit official-looking emails on government letterhead to enhance the credibility of the scam.

How to Protect Yourself

While these scams can be complex and highly deceptive, there are clear steps you can take to protect your financial well-being:

1. Don’t Click on Unsolicited Links or Pop-Ups
   Avoid interacting with unexpected pop-ups, texts, or emails asking you to click on links or call a phone number for support. Scammers use these to lure you into giving them access to your devices or personal information.
   
   
2. Never Give Remote Control of Your Computer
   Do not let anyone you don’t know take control of your computer. If you receive a message or call saying you need to download software for a "virus scan" or technical assistance, it’s likely a scam.
   
   
3. Beware of Requests for Money Transfers
   Scammers often urge victims to wire money to resolve an issue or prevent fraud. Always be skeptical of anyone asking for a money transfer, especially if they claim it’s for your protection.
   
   
4. Verify the Source
   If someone contacts you claiming to be from a government agency, financial institution, or tech support, verify their identity independently. Hang up the phone or close the message, and contact the organization using a trusted number from their official website.
   
   
5. Keep Your Information Private
   Never give out sensitive information, like your Social Security number or financial account details, to unsolicited callers or emails. Legitimate organizations will not ask for these details via phone or email.
   
   
6. Don’t Talk to Strangers
   When in doubt, don’t engage. Scammers often rely on gaining your trust by posing as someone familiar or authoritative. The best way to avoid falling victim is to limit communication with unknown individuals.

Final Thoughts

As scams grow increasingly advanced, older adults are often prime targets who may be less familiar with newer digital threats. Staying informed about common fraud tactics and following these basic safety rules can help protect you from financial fraud. Always remain cautious and take the time to verify any unsolicited requests for money or personal information.

Disclosure

The views expressed represent the opinions of ClientFirst Wealth Management, LLC as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website. www.adviserinfo.sec.gov Past performance is not a guarantee of future results.