A couple of weeks ago, I received two texts. I didn’t look at these, since I was in a meeting with a client, but then my phone rang. Seeing it was a call from the same family member, I excused myself, walked out, and answered her call. She had been ordering medical supplies from Amazon and checked her messages. A text claimed her Amazon Prime membership had ‘expired,’ creating a sense of urgency that prompted her to click the link without thinking. She filled out a lot of information (including credit card number, expiration date, birthday, address, mother’s maiden name and social security number), hit “send” and then thought about it. She wondered if she had been conned. She called her credit card company, and they affirmed that she had. What made it worse was that she had thought she never would fall for something like this. But in the heat of the moment, she did.
We have heard different versions of the same story from a number of clients, friends and family members. The names used by the crooks include software and computer companies, banks (national and local), brokerage firms (including Schwab), government agencies like the FBI, toll roads, parking fines, and virus removal firms. Common subject lines or phrases used in these include: “Your account has been suspended,” “Urgent action required,” or “You have won a prize!” During 2023, the FBI received nearly 900,000 complaints about tactics like these that resulted in potential losses exceeding $12.5 billion. And these represented only the attacks that they knew about. The real numbers are likely much higher.
You might be thinking, this only happens to people who aren’t “tech-savvy” or perhaps are elderly. This doesn’t seem to be true. For example, the FBI noted that “victims 30 to 49 years old were the most likely group to report losses from investment fraud.” From what we’ve seen, we believe that the victims are rational, intelligent and busy with life. So, if the people being scammed are just like you and me, what can you do to guard yourself?
First and most importantly, consider yourself a prime target for scams like these. If you have a phone, cell phone, email account, computer or a mailbox, you can be sure that you will be targeted. Believing this should motivate you to protect yourself and your family.
Playing it Safe
- Keep in mind that legitimate companies will never:
- Demand immediate payment for services.
- Insist on using specific payment methods (like gift cards or bitcoin).
- Be cautious of messages that you did not initiate. Scammers have a very low cost of doing business. They can send out tens of thousands of messages to potential victims using a host of different bank names, for example. One of them may be the one you use, which may lead you to think that they are legitimate.
- Be suspicious of payment or expiration notices that are sent via text message, a pop-up on your computer, in an email or from an automated phone call. If you use an application (app) to work with your bank, card company or retailer, be sure to go into that app (without clicking on a link sent in a message) to see if it shows the same issue that the message claims is a problem. You can also make a phone call using a number you know has worked in the past (again, not a number sent to you in that message) and ask them for help.
- Scammers make the links they send to you look legitimate. However, they end up taking you to a different site. Often these are spelled a little differently so you won’t notice, or consist of an address that conceals its true destination. That’s why it’s so important not to use these but to go to the website, app, or phone number you have consistently used in the past.
- As I am writing this note, I have received an automated phone call warning me that “a shipment is going to be made” on an X-box gaming computer and that I need to cancel it if I did not place it myself. That’s another twist which seems to be effective, since I probably don’t have a verifiable way to contact a person at the company, other than using the number or link they gave me in the message. But if it’s really the case that someone else ordered this using my information, I’ll see this on my credit card account. Then I can call and let their fraud department know that I did not make the purchase. Credit card companies and banks have a process set up for this, and they will work to protect you.
- Think about the information the message is asking for. Legitimate companies probably do not need your social security number, checking account number or password information to correct a late payment or expiring account issue. A scammer can easily use this information to do things like drain your checking account, hijack your phone number, make charges on your credit card, and even open new credit accounts.
- Practice good computer and cell phone “hygiene.” Keep your software, browser and virus protection updated to the most current versions. These are updated often, usually more than once a month. Scammers exploit known issues in older versions, which is why companies work to update these to protect you. Use strong passwords, unique for each app or website and consider using two-factor authentication.
You Can Do This
If you receive a message asking for payment or personal information and it worries you, stop, take a breath, and think. The reason scams are successful is that we lead busy lives—we think the last thing we need is another pressing item on our “to do” list, so we take what we believe are simple steps (click on the link or call the provided number) to take care of it. Stopping and thinking about what you are about to do is important, especially when the message claims to be “urgent.” If you’re still unsure, take the time to ask a knowledgeable friend, family member or professional to give you their opinion. We encourage you to call us, and in fact, clients have done so about messages like these. We have some helpful thoughts and contacts.
It would be wonderful if scammers would go away, but by taking appropriate precautions, you can significantly reduce your risk of being scammed. Stay vigilant, stay informed, and don’t hesitate to reach out if you have any questions. Call us at (402) 991-3388.
Think you’ve been scammed? Report this to your local law enforcement agency, the Federal Trade Commission www.ftc.gov and the FBI’s Internet Crime Complaint Center www.ic3.gov . If you are worried that your investment accounts could be compromised, call us and we will call Schwab’s Fraud Prevention Department with you to take important steps to protect you.
Disclaimer: This article is for informational purposes only and does not constitute personalized financial advice. It does not claim to deal with every type of scam, nor does it prescribe every protection you should take. Consult with a qualified financial advisor before making any investment decisions.
Eric Ball, CFA
Managing Director & Chief Investment Officer
America First Investment Advisors, LLC
Omaha, Nebraska
This post expresses the views of the author as of the date of publication. America First Investment Advisors has no obligation to update the information in it. Be aware that past performance is no indication of future p
