In this imperfect world, many fall victim to schemes that lured them into financial ruin and identity theft. Fortunately, there are many ways people can safeguard themselves, their families, and their finances.
Phishing
When receiving a message that deceptively appears as a reputable company or person to ask for your information, that is called phishing. They may come as emails, calls, or texts seemingly from banks, websites, or people. They ask for your personal information for verification purposes or to receive a reward.
The trouble with phishing is that banks will never ask for your online banking password. Also, if you never entered a contest, you won nothing, and they don’t need your credit card information either. With the recent advancements in artificial intelligence, some phone calls can also deviously sound like a loved one but be fraudulent. Always verify the sender if they reached out unsolicited, and resist the emotional appeal to act too quickly.
Wire and Gift Card Scams
The US Department of Justice lists key elements of what counts as wire fraud. Wire fraud is a federal crime that entails posing as someone in need of money, such as a cousin, Nigerian prince, or person of romantic interest. They may convince you to send money via wire transfer, sometimes quickly or after gaining your trust. Their message, which likely has many grammar and spelling errors, could be a call, online message, or from a legitimate email address that has been hacked.
A general rule of thumb is never wiring money to people you have not met, especially if they are overseas. The money wired may be almost impossible to trace or refund, and your personal information becomes no longer personal. Sometimes, the scammer may instead ask for gift cards for a good, emotional cause. Never buy gift cards under these circumstances, and always separately confirm the requests with people you know.
The First State Difference
First State exclusively uses Charles Schwab & Co as our custodian. Schwab is a member of the Securities Investor Protection Corporation (SIPC) and features unique encryption and identity verification processes. For a free consultation with Tulsa financial advisors, contact us at 918-492-1361.
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.