I have worked as a Wealth Advisor for a major Wall Street firm for 22 years. Never in that time have I seen the volume of fraudulent attempts at stealing my client’s money as I have within the past few months. In this short diary, I just wanted to give a few tips of what to look for and how you can protect yourself.
As long as there has been money, there have been people trying to steal it. Cons come in many forms and the owners of money (regardless of the amount) need to be vigilant in protecting it. One client of mine, 74 years of age, had over $650k stolen from him in a crazy crypto scam. I tried to get him to stop withdrawing from his retirement accounts to fund his new fascination in the get rich quick crypto market, but I couldn’t do it. It’s hard to get someone, who responds in sane and rational answers to questions attempting to reveal duress, influence, or declining mental acuity. I can’t stop a person from spending their money. In his case, an unscrupulous “salesman” duped him into a fake account and absconded with his money. The first two deposits of $50k were real, the rest was a ruse. In another case, one of my clients (age 63) wanted to withdraw over $150k when she has never taken out more than $5k at a time. When I simply asked what this large withdrawal was about (over 50% of her account value), she couldn’t give me a straight answer. I asked her plainly if she was being manipulated or if she felt threatened. She then yelled at me to give her her money. If ever there was a tell, that would be it. I was able to stall the withdrawal over two weeks and just today, she revealed that her life was being threatened by two actors who were draining her accounts. That is, she felt she had no choice. She filed a police report and now has documentation about what has been happening to her. It was/is chilling.
Other scams involve a real transaction, like the purchase of a house. Someone electronically steals the identity of the buyer of the house, and right before the money has to change hands, calls a staff member of the buyer’s bank and gets the money wired to a different place. So the bank/financial institution has been given a head’s up that a large transaction is about to occur, they aren’t surprised when the call comes in. The money is let go and it is gone. The owner of the account finds out in horror the next day when their account is all but depleted.
And this speaks nothing about online hacking and electronic invasion of accounts. Like the time one of my clients (72) got a text that something was wrong with her account and to call a number. She did. The man was kind and “knew what he was talking about” and got her to allow him into her computer because “it would be easier for him to solve the problem.” As he got into her computer, with her on the phone, he installed a virus and the next day, all of her money was gone from her bank.
What can you do? The first thing you should do is make sure your banking passwords are secure and changed periodically. I recommend a password generation program so you don’t even know what it is. And double factor authentication is a must for any electronic communication with a financial institution. The second thing is encryption. Never ever send a statement or a tax form through an unsecure email. Your financial institution should have methods of uploading or downloading sensitive documents securely. Thirdly, go electronic with your documents. No more snail mail. Mail box theft is rampant and they get more than your bank statements. Make sure your mailbox has a lock. And for the love of god, don’t let someone into your computer. Stop and call the bank you do business with and ask them if they notice something is wrong. Chances are very high, they will confirm you’re ok, but that is a scammer you’re talking to.
If your financial institution allows it (and they should, otherwise, find a new one) provide a “trusted contact” to your profile with the bank. We are trained to pick up on verbal cues of stress and unusual requests. If we could call someone -— your trusted contact -— we could ask if you’re ok. The trusted contact doesn’t have access to your accounts. They do not have a power of attorney over your accounts. They just have the responsibility to communicate if the owner of the funds is ok or if they believe something suspicious is happening.
Do you know the cybersecurity capabilities of the banks you do business with? Have you ever asked? My company spends more on cybersecurity than our four largest competitors combined. Our cybersecurity chief used to work at the NSA and has brought many many colleagues over to my firm. Our policy is that if there is a breach to our systems and, through no fault of your own, a bad actor steals your money, you will be refunded in full. I’m told that using your phone app is more secure than using your desktop, for online banking needs. Encryption is constantly being randomized on the apps. I’m not a technologist, so I can’t speak to why this is, but I trust my cybersecurity department and their expertise in the matter.
If you can, subscribe to a credit security service so that any new credit card or credit check will be communicated to you. My firm offers this service for free to qualifying clients. Also, to the extent you can, work with a firm or an advisor who gets to know you. Relationships matter and relying only on your device is not sufficient to keep you safe.
I do not mean to be an alarmist (apologies if someone reading this is freaking out right now), but people are out there trying to separate your from your money. Please take it seriously.
Now, back to politics.
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Your Money, Your Risk: Fraud is Real
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