One Step Ahead: Recognizing and Preventing Financial Fraud

I have the privilege of working with clients across a number of our offices at Curi RMB Capital. Recently, I have been hearing a common refrain in my work with both clients and advisors—an increasing number of people are being targeted by scammers for access to their money and their personal accounts. I’m also seeing this in my own life with my family and even across my own email accounts, text messages, and phone calls.

As scammers get smarter and more creative, I want to share some of the ways that Curi RMB Capital recommends clients look out for themselves and their loved ones. By staying informed, alert, and taking precautions, our team believes you will have a better chance of protecting yourself and those you care about.

The Rise of Financial Fraud

Scammers use many tricks—phone calls, texts, emails, social media, and fake websites—to steal money or personal information. While anyone can be a target, older adults and those unfamiliar with online security are especially at risk. However, knowing what to watch for can help you stay safe.

Common Scams

Understanding different types of scams is the first step to avoiding them. Here are some of the most common ones:

• Imposter Scams: Scammers pretend to be from the IRS, Medicare, or Social Security, demanding money or personal details. Even mundane topics like jury duty, toll fees, and shipping and delivery services are being co-opted by scammers.
• Investment and Tech Support Scams: Fraudsters claim to be from a financial company or tech support, asking for login details or access codes.
• Grandparent Scams: Someone poses as a grandchild in distress, asking for money urgently.
• Charity Scams: Fake charities ask for donations, especially after disasters.
• Romance Scams: Online fraudsters build fake relationships to convince victims to send money.
• Shopping and Phishing Scams: Fake websites or emails steal personal and payment information.

How to Stay Safe

Knowing warning signs can help you avoid scams. We recommend following these simple steps:

• Look carefully. Imposter materials like emails and websites can look very similar to the originals from a legitimate institution! It’s good to verify details like the contact of origin (such as an email address or phone number) through your own search to verify who is reaching out. If you can’t tell whether something is legitimate, contact the institution to verify.
• Be cautious with unexpected messages. If someone suddenly asks for money or personal details, be skeptical. Scammers often pressure you to act fast before you have time to think—so slow down and cross reference with your previously trusted sources.
• Protect your personal information. Use strong passwords, enable two-factor authentication, and don’t share sensitive details unless you are sure who you’re dealing with.
• Verify before sending money. Be suspicious if someone asks for payment through gift cards, cryptocurrency, or wire transfers, as these are hard to trace.
• Check your accounts regularly. Look for unusual activity on your bank and credit card statements.
• Get advice before making big financial decisions. Never rush into giving someone access to your money. Talk to a trusted friend or family member, and remember that the Curi RMB Capital team is always here to help you think through whether and how to share access to your financial accounts.

Protecting Those Most at Risk

Sadly, scammers sometimes take advantage of family members, especially elderly relatives. Keeping legal and financial documents updated and involving trusted professionals can help protect them from fraud.

You can also help protect your loved ones by:

• Talking about scams. Open discussions can help people recognize fraud and feel comfortable asking for help. This can also help you stay attuned to new scams to keep an eye out for. Nobody is too smart or tech savvy to get caught in a scam!
• Setting up financial safeguards. Enable fraud alerts, credit monitoring, and security settings to help prevent unauthorized transactions. See our guides below for a helpful start.
• Reviewing financial statements together. This can help your loved ones who are less in tune with their day-to-day finances spot suspicious activity.
• Encouraging estate planning. Setting up a power of attorney or financial contact can help ensure finances are handled safely. Your Curi RMB Capital team can be a resource for estate planning, as well as connect you to the legal and other advisors as needed.

What to Do If You’re a Victim of Fraud

Even with precautions, scams can happen. If you or someone you know is a victim, take action right away:

• Report the scam to the FTC https://reportfraud.ftc.gov, as well as to the local police and your bank.
• Freeze accounts to stop further fraud.
• Alert credit bureaus to prevent identity theft.
• Get professional help from financial or legal experts to recover lost money.

Final Thoughts

Financial fraud is a growing issue, but staying informed can help you avoid scammers or act quickly if you do fall for a scam. Keep the conversation going with family and friends, and don’t hesitate to ask for help if you suspect a scam. And, on behalf of all our advising teams here at Curi RMB Capital, don’t hesitate to reach out to your team with questions or for help. We all want to keep our clients as safe and informed as possible. 

Additional resources:

• Keeping Your Financial Accounts Secure
• Protecting Yourself from Financial Fraud in the Digital Age
• How to Respond to a Data Breach
• Get to know the Curi RMB Capital team members reaching out to you about your accounts: meet our Client Service Team