The frequency and efficacy of scammers has increased over the years. A report from the FBI says that losses to cybercrime activities is up nearly 200% since 2020.[1] And with the improvements in artificial intelligence, we can expect scamming will only get more devious and lucrative in the years to come.
Education, intelligence, and success in life do not protect someone from being a victim. The best defense is a good offense. And a good offense begins with humility – understanding that anyone at any time can become a victim to a scam, including you and me. The next step is to be familiar with the different types of scams, and their methods, and create defenses to avoid becoming a victim.
Scams Today
There are many ways people are scammed these days. A few include romance scams, tech support scams, password compromise/reset scam, and scam awareness scams (when the scammer claims to be from a reputable company, says you are being scammed, and offers to help you). I cannot list every way in which we can get scammed, but there are a few dependable defenses that will greatly reduce the likelihood that you and I become victims of a scam.
The scam artists today might have a lot of information about you. They may know who you associate with and companies you do business with. Through hacking and spoofing, they can contact you while appearing to be a known contact or business. They often trigger feelings of fear, greed, love, and/or loss to get you motivated. And they may work under the shroud of urgency and secrecy.
Tips to Protect Yourself from Scam Artists
- Be especially alert to urgency. Urgency is one of the most common tactics scammers use to manipulate their targets. Be especially cautious when you’re pressured to act immediately, whether it’s to claim a prize, avoid a penalty, or protect your account. Scammers create a false sense of urgency to bypass your critical thinking, leaving you feeling rushed and vulnerable. Take a step back, verify the information, and resist the pressure to respond right away.
- Never click a link in an email or text, even if it is from someone you know or a company you do business with. If you think the email or text might be legitimate, go to the company’s official website by typing the URL into a web browser instead of clicking on the link.
- Never give remote access to your phone or computer. Whether it claims to be IT support or a bank trying to “help” you, giving remote access to your accounts is like giving a thief a key to your home. Double and triple check before giving remote access.
- Look at the email address of the sender, not just their name. Many deceptive emails will come from companies you do business with. By looking at the actual email address of the sender, you can decipher if this could be legit or is a scam.
- Share with a trusted individual. Have someone you trust – a family member, close friend, or myself, to talk to if anything happens out of the ordinary. Scams are often more detectable by 3rd parties (because emotion is not in play for that person). This is essential if you are told not to tell anyone or are coached on what to say – those are huge red flags!
In financial planning, we often talk about accumulating assets and then using those assets wisely when you retire. We focus our attention on making wise investment decisions and growing your portfolio. But all of that is moot if you become a victim of a scam. Therefore, protecting yourself from becoming a victim to a scam is a new, and essential, part of the financial planning process. And I am here to help you. Please click here to set up an appointment today!
©The Behavioral Finance Network
[1] Internet Crime Report 2023, FBI Internet Crime Compliant Center. Apr 4, 2024.
