On several occasions, I’ve received urgent calls asking for help from clients who’ve become victims of some type of scam.

Typically, these victims are bright and savvy people of older generations. They tell me they were caught off guard by the solicitation and felt pressured to make a quick decision. Yet, they knew immediately that they had made the wrong choice.

The variety of scams I’ve witnessed includes government imposters, emergency calls to grandparents, the uncollected debt of a deceased person, and internet, investment, romance and sweepstake scams. The list is as long as a criminal mind is creative.

Scammers will sometimes make it seem as if they are reaching out from a legitimate source, including your favorite charity, bank, or government agency. But on close review, you may notice something is not right, such as a typo, incorrect grammar, spelling, or facts that do not seem correct.

Never share any personal information, such as usernames, passwords, or one-time user codes. You could be unintentionally giving the scammer access to your bank account or, worse yet, your identity. As an additional precaution, I recommend setting up multifactor authentication for another layer of security, if this is an option.

According to the FBI, fraud schemes are prevalent following a high-profile disaster such as the recent fires in Maui. If you are a victim of a natural disaster or other emergency, you are a prime candidate for fraud.

If your home was damaged and needs repairs, carefully vet your contractor before making any commitment to hire them. Before signing a contract, ask for their contractor’s license number and confirm with the Contractors State License Board that they are insured and bonded. Do not assume their license number is valid. Remember, in California the initial deposit given to a contractor is no more than 10 percent of the total cost of the job or $1,000, whichever is less. (This applies to any home improvement project, including swimming pools.)

If a charity or organization asks you to donate cash, gift cards, or virtual currency, such as direct funds via Zelle or Venmo, cryptocurrency, or a wire transfer, consider this a red flag. There’s a good chance the request is fraudulent. When you do give, first verify that the organization is legitimate, then use a check or credit card for payment.

Legitimate charities’ websites usually end with .org, not .com. Be aware of organizations with copycat names or names that sound like those of reputable organizations. And be wary of new organizations that claim to aid victims of recent high-profile disasters.

If you are contacted by phone by someone you do not know, hang up. As a note, the IRS will not reach out to you via a phone call. They will send a letter if they need to contact you.

Often, when we are skimming through our emails or texts, we do it quickly. When you are on your computer or phone, do not open links, attachments, emails, or text messages from someone you do not know. If you feel you need to follow up, look up the phone number in a phone book or online. Do not use any information provided in the email, text, or letter to confirm the validity of the solicitation.

Never deposit a check to your bank account from a business or a person with whom you are not familiar. Scammers may give you a check, mention that you were mistakenly overpaid, then ask for some of the funds back. The check you receive will be fraudulent, which will then be returned for insufficient funds by your bank.

If you are taken by surprise and become a victim of fraud or experience a bad business practice, report it to the Federal Trade Commission (FTC). Contact the FTC by calling 1-877-382-4357 or by completing a report online at www.ftc.gov/scams. The FTC has resources available to help you donate wisely and avoid scams.

As suggested by the FTC, when you consider giving to a specific charity, search its name plus the word complaint, review, rating, or scam. Research all charitable organizations you are interested in giving to through appropriate links available on the FTC website. The site provides links to the BBB Wise Giving Alliance, Charity Navigator, Charity Watch, and Candid.

Additionally, you can check the IRS’s website, searching for Tax Exempt Organizations. This will tell you if your donation is tax deductible and if you are giving to a legitimate charitable organization.

Anyone can be caught off guard and make a poor quick decision. But by implementing simple safety practices into your daily life, you can minimize the risk of falling victim to a scam. The following basic security measures can help protect you:

1.      Hang up the phone when you receive an unwanted solicitation.

2.      Never give out your personal information, including your social security number, passwords, or bank information to anyone you do not know.

3.      Do not pay anyone you do not know with cash, gift cards, or virtual currency, such as sending direct payment by Zelle or Venmo, cryptocurrency, or wire transfer.

4.      Collect your mail daily and shred all mail instead of throwing it in the trash.

5.      Review your texts and emails for legitimacy before opening them. Do not open any attachments on unfamiliar emails.

6.      Review your bank and credit card statements monthly to verify that your credit card charges are correct.

7.      Annually, review your credit report, searching for new accounts that you did not open.  A free credit report is available at freecreditreport.com.

Never give anyone your personal or bank account information if they are reaching out to you via letter, email, text, social media, or phone call and you do not know them personally. Immediately consider the solicitation as a threat and treat the event as such. You may be uncomfortable treating others with open suspicion, but by doing so, you can avoid becoming a victim of a scam.

Teri Parker is a vice president for CAPTRUST Financial Advisors. She has practiced in the field of financial planning and investment management since 2000. Reach her via email at [email protected].

Related Articles