In recent years we have met with many people who have been the victim of financial scams, with some losing significant amounts of money. We have even seen several clients who have lost their entire life savings. As these scams become more sophisticated it is more important than ever to stay informed and vigilant.
At Levitt and Slafkes PC, we believe that knowledge is power, and understanding recent scams can help you avoid becoming a victim. Here’s some scams our clients have experienced and some tips on avoiding them.
Phishing Scams
What are Phishing Scams
What They Are: Phishing scams trick you into giving criminals personal information that they should not have access to such as usernames, passwords, social security numbers or credit card details. They do this by pretending to be a trustworthy entity such as a legitimate business. These scams can come in the form of emails, texts, or even phone calls. We had one client who gave personal bank account information to scammers who called and said they were Verizon and lost significant amounts of money.
How to Avoid Phishing Scams:
- Verify Sources: Always double-check the sender’s email address or phone number. If you receive a message requesting sensitive information, contact the organization directly using a trusted contact method such as the contact information on a recent bill, or the number on the back of your credit card.
- Be Skeptical: Look for signs of phishing, such as poor grammar, urgent language, or unfamiliar links. Hover over links to see where they lead before clicking.
- Use Multi-Factor Authentication (MFA): This adds an extra layer of security by requiring more than just a password to access your accounts.
Investment Scams
What are Investment Scams
What They Are: These scams promise that you will receive a high return on your money with little risk. They often target people with fake investment opportunities. A recent client of our office lost nearly $500,000 by falling prey to a crypto currency scheme. The scheme was very sophisticated, involving online account access showing very high returns on investments. It was only when the client wanted to cash out that the excuses started and he learned that he had been scammed.
How to Avoid Investment Scams
- Research Thoroughly: Before making any investment, research the opportunity thoroughly and consult with a financial advisor.
- Be Wary of Unsolicited Offers: Be cautious of unsolicited investment offers, especially those promising unusually high returns. If it is too good to be true, it usually is.
- Verify Credentials: Check the credentials and regulatory status of anyone offering investment opportunities.
Grandparent Scams
What are Grandparent Scams
What They Are: Grandparent scams, also known as “emergency scams,” prey on the love and concern that grandparents have for their grandchildren. The scammer typically calls the grandparent, pretending to be their grandchild or an authority figure. They make up a story about an emergency such as an arrest, car accident or medical emergency and demand that they be given immediate money to solve the issue. The scammer often has information about the family which they get from stolen date or social media profiles.
How to Avoid Grandparent Scams:
- Verify the Identity: Always ask the caller questions only your grandchild would know. Call your grandchild or their parents directly using a known number.
- Be Suspicious of Urgency: Scammers often create a sense of urgency to prevent you from thinking critically. Take a moment to assess the situation.
- Avoid Sending Money Immediately: Do not wire money or provide financial information over the phone. Instead, verify the story through other means.
Advance Fee Scams
What are Advance Fee Scams
What they are: Advance fee scams involve a scammer convincing a victim to pay money upfront with a promise of a larger financial reward. Common variations include lottery scams, fake investment opportunities, or prize winnings. The scammer might claim that paying the advance fee is necessary to release funds or to secure an investment opportunity. We have seen several clients who have transferred large sums of money in anticipation of a large return which never came.
How to Avoid Advanced Fee Scams:
- Question Unsolicited Offers: Be very skeptical If you receive an unexpected offer or prize, especially from an unfamiliar source.
- Thoroughly Research: Look up the company or individual making the offer. Check for reviews, official registrations, and contact details.
- Never Pay Upfront Fees: Reputable businesses do not ask for upfront payments for future rewards or services.
Conclusion
This is just a few of the many scams that are currently out there. Staying ahead of scams requires vigilance and a proactive approach. At Levitt and Slafkes PC, we are committed to helping you protect your personal and financial information. By staying informed about current scam trends and implementing best practices for security, you can significantly reduce your risk of falling victim to fraud.