RZH Insights – Protecting Yourself from Fraud

Fraud and financial scams are becoming increasingly common, and even the most vigilant individuals can become targets. Understanding the risks and taking proactive measures can help safeguard your assets and personal information. Below, we outline common fraud schemes along with key steps to protect yourself.

Common Fraud Schemes & Warning Signs

1. Phishing Scams (Email & Text Fraud)

Example: A client received an email appearing to be from their bank, requesting account verification via a link. The email led to a fake website designed to steal login credentials.

Warning Signs:

  • Emails or texts with urgent language (e.g., “Your account will be locked!”).
  • Links that direct you to an unfamiliar website.
  • Unexpected requests for personal information.

How to Protect Yourself:

  • Never click on links in unsolicited emails or texts; go directly to the company’s website.
  • Verify the sender’s email address carefully.
  • If in doubt, call the institution using a known phone number.

2. Social Security & Government Impersonation Scams

Example: A caller claimed to be from the Social Security Administration (SSA), stating that the recipient’s SSN had been compromised and needed verification immediately.

Warning Signs:

  • Calls or messages claiming you must verify personal details immediately.
  • Threats of arrest, account suspension, or legal action.
  • Requests for payment via gift cards, wire transfers, or cryptocurrency.

How to Protect Yourself:

  • The SSA, IRS, or other government agencies will never call asking for personal info or payments.
  • Hang up and report the call to www.ssa.gov or the FTC.
  • Never share personal information over the phone unless you initiated the contact.

3. Fake Tech Support Scams

Example: A pop-up appeared on a person’s computer warning them of a virus and urging them to call “Microsoft Support.” A scammer convinced them to allow remote access and stole financial information.

Warning Signs:

  • Unexpected pop-ups warning of a virus and asking you to call a number.
  • Callers claiming to be from Microsoft, Apple, or Google offering to “fix” your device.
  • Requests for remote access or payment for unnecessary services.

How to Protect Yourself:

  • Legitimate tech companies will never proactively reach out about issues.
  • Never allow remote access to someone you don’t know.
  • Restart your computer and run a virus scan instead of engaging with pop-ups.

4. Fake Check & Overpayment Scams

Example: A seller on Facebook Marketplace was sent a Zelle payment for more than the item’s price and asked to send back the difference. The payment bounced after the seller returned the difference, leaving them responsible for the lost funds.

Warning Signs:

  • A buyer sends a check or Zelle for more than the agreed price.
  • Requests to return excess money via wire transfer or gift cards.
  • Checks that take a long time to clear (often fake).

How to Protect Yourself:

  • Never accept overpayments
  • Wait for funds to fully clear before withdrawing or sending funds.
  • Always verify the recipient and use caution when sending money electronically

5. Romance & Online Relationship Scams

Example: A client met someone on a dating site who quickly professed love and asked for money to help with an emergency. They later discovered the entire relationship was a scam.

Warning Signs:

  • A new online connection quickly becomes serious and emotional.
  • They always have an excuse for why they can’t meet in person.
  • Requests for money due to a sudden “emergency.”

How to Protect Yourself:

  • Be skeptical of online relationships that escalate quickly.
  • Never send money to someone you haven’t met in person.
  • Reverse image search their photos to check if they appear elsewhere online.

Key Steps to Protect Yourself from Fraud

Enable Two-Factor Authentication (2FA): Add an extra layer of security to your email, bank accounts, and financial institutions.

Enroll in a Credit Monitoring Service: Services like Equifax, TransUnion, or Experian can alert you to suspicious activity and prevent identity theft.

Place a Security Freeze on Your Credit: This restricts access to your credit report, making it harder for fraudsters to open accounts in your name. You can unfreeze it when needed.

Be Cautious with Personal Information: Never share sensitive details like your Social Security number, date of birth, banking information, or passwords unless you are 100% sure of the recipient. Never email this information unless using an encrypted or secure method.

Verify Requests for Money or Information: If a request seems urgent or unusual, take a step back (talk to a friend or loved one) and confirm its legitimacy before acting.

Final Takeaway: Stay Vigilant, Stay Secure

Scammers rely on urgency, secrecy, and emotional manipulation to trick people into acting quickly. This is not an exhaustive list of fraud schemes or protective measures, but it provides a strong foundation for keeping your personal and financial information secure. By staying informed and taking proactive security measures, you can significantly reduce your risk of falling victim to fraud. If you ever have concerns or suspect fraudulent activity, reach out to us immediately. We take the security of your financial future seriously and are always here to help.

Warmest Regards,

Lauren Rowland CFP®CDFA®