Judd Matsunaga
Did you really win the lottery? Is the government really contacting you about an unclaimed tax refund? Are you the only heir to an unknown relative’s multimillion-dollar estate? It’s easy to think you’ll never fall for a financial scam. However, technological advancements are leading to increasingly sophisticated and convincing scams and schemes.
Sometimes, the letter or email looks quite legitimate, with familiar brand names that appear almost official. You’ve probably received one of these “great news!” messages. The patterns are familiar: You’ve won the lottery, a distant relative you’ve never heard of left you money or you’re receiving a sizable refund.
The problem is, scams come in all shapes and sizes. They target anyone — from the elderly to busy professionals and even tech-savvy millennials. Scammers are constantly finding new ways to steal your money, from blackmail to romance scams to selling nonexistent items. That’s why it’s critical to know how to protect yourself — and your assets — from these new threats.
Advances in artificial intelligence make it easier for scammers to clone voices and alter images to make it seem like someone you know needs help. During this scheme, the victim may receive a phone call from an individual who identifies themselves as — and sounds exactly like — a family member who is in distress.
The caller requests the victim send them funds urgently due to an emergency, such as a hospitalization, but any funds transferred will be lost to the scammer. Contact the person yourself to verify the story. Use contact information you know is theirs. If you can’t reach them, try to get in touch with them through another trusted person, like a family member or their friends.
The Consumer Financial Protection Bureau has information on how to protect yourself. They suggest that you look closely at your financial accounts and billing statements. Are there any charges or withdrawals you did not make? Even a small charge or withdrawal can be a danger sign. Thieves sometimes will take a small amount from your checking account and then return to take much more if the small debit goes unnoticed.
According to the website www.consumerfinance.gov, there are several signs that indicate you might be dealing with a scammer. From a March 21, 2024, article titled “What are some classic warning signs of possible fraud and scams,” watch out for the following red flags:
- Claiming to be from the government, a bank, a business or a family member, and asking you to pay money.
- Asking you to pay money or taxes up front to receive a prize or a gift. Don’t click on links or scan QR codes. These can take you to scammers’ malicious websites or give them access to your device.
- Asking you to wire them money, send cryptocurrency, send money by courier, send money over a payment app or put money on a prepaid card or gift card and send it to them or give them the numbers on the card.
- Asking for access to your money, such as your ATM cards, bank accounts, credit cards, cryptocurrency wallet keys or access codes or investment accounts. Never pay up front for a promised prize. It’s a scam if you are told that you must pay fees or taxes to receive a prize or other financial windfall.
- Pressuring you to “act now” or else the deal will go away or trying hard to give you a “great deal” without time to answer your questions. After hearing a sales pitch, take time to compare prices. Ask for information in writing, and read it carefully.
- Creating a sense of urgency or emergency to play on your emotions.
Be wary of text messages and emails that include a link or are soliciting a reply or response. This may be an attempt to get you to click on a malicious link. When it comes to protecting your online information, be mindful of any unsolicited financial advice or requests to move your money or investments. Similarly, view any text message from an unknown number cautiously, even if it appears to come from your financial institution, as phone numbers can easily be spoofed.
Resist claims of urgency and threats. A consistent red flag of most fraud attempts is that the victim will feel pressured to act immediately or suffer negative repercussions if they do not. For example, a fraudster may send one of the following messages to coerce their victim:
- “Invest in this sure-fire system to safeguard your accounts from fraud now.”
- “You only have 20 minutes to claim this personalized investment opportunity.”
- “Contact us in the next 10 minutes, or your account will be frozen.”
Your money is closely linked to your user IDs, passwords and PIN numbers. Don’t disclose your personal information to anyone. Don’t share numbers or passwords for accounts, credit cards or Social Security. Your financial providers, such as banks and brokerages, or the police will never contact you to disclose your passwords and PIN numbers. Keep all such information confidential and safe. Update your passwords and PIN numbers periodically.
Your own online practices play a significant role in minimizing the risks of financial scams. Ensure you have the latest operating system and browser installed and protect your computer and mobile devices by using the most up-to-date anti-virus software. To help protect yourself and your online information, closely monitor your financial accounts regularly to ensure there is no unexpected activity.
However, if you can’t do all of that, you should, at a minimum, protect your ID: (1) Put your number on the National Do Not Call Registry. Go to www.donotcall.gov or call (888) 382-1222; and (2) Freeze your credit with the three major credit reporting agencies. This way, no scammer can open an account in your name. To freeze your credit for free, you can contact Equifax, Experian and TransUnion:
– Equifax: Call (800) 349-9960 or (800) 685-1111, or create an account online.
– Experian: Call (888) 397-3742, or create an account online.
– TransUnion: Call (888) 909-8872, or create an account online.
In addition, look into an identity-theft protection service, such as LifeLock and Identity Guard. Identity-theft victims suffer the stress of trying to get their identity back, restoring their credit scores and organizing the repayment of any financial implications of the crime. An identity-theft protection tool can be the difference between being safe or suffering financial and legal consequences.
There are several companies that offer identity-theft protection services. But the one I signed up with (i.e., highest-rated) is Aura. “Aura has a neat interface to monitor essential financial vulnerabilities, such as bank accounts, and identity-theft records. The up-front pricing is refreshing, it is simple to use … .” according to TechRadar.com.
In conclusion, if it sounds too good to be true, it probably is. Walk away from high-pressure sales tactics. Watch out for deals that are only “good today.” Finally, don’t fall for the sales pitch that says you need to pay immediately.
Judd Matsunaga is the founding attorney of Elder Law Services of California, a law firm that specializes in Medi-Cal Planning, Estate Planning and Probate. He can be contacted at (310) 348-2995 or judd@elderlawcalifornia.com. The opinions expressed in this article are the author’s own and do not necessarily reflect the view of the Pacific Citizen or constitute legal or tax advice and should not be treated as such.
