By Eric Reich
Scammers have been around for centuries, such as snake oil salesmen and other cure-alls. I feel like they must have been at least fairly easy to spot except for by the extremely gullible. Today, however, scammers, especially online, seem to be really good at their jobs. The numbers are staggering. In 2023 alone, American consumers reported losing $12.5 billion dollars. If you think that number is scary, understand that this is only the reported amount. How much more went unreported because people, especially seniors were embarrassed to report being scammed. Scarier still, this number was “only” 3.5 billion in 2020. That’s 3.5 times as much in only 3 years. Imagine what that number can be in a few more years. This week, I thought we would explore a few of the scams to watch out for.
- IRS scams
Scammers are calling or emailing people in an attempt to get them to set up online accounts with the “IRS” in order to get your refund processed faster or because you owe them money, etc. This one is easy to tell if it is a scam because the IRS will never call or email you. They send you written correspondence. There isn’t an online account to help you get a refund faster. If you want a faster refund, file early. Do it electronically, and choose direct deposit for your refund.
- A grandchild needs help
I can’t imagine too many grandparents that don’t want to help their grandkids. Now imagine that grandchild calls you in a panic because they need help. That help in the scammer world is always in the form of immediate financial assistance. The most common form of “help” they are requesting is gift cards. The problem has become so bad, that this is the reason they make you acknowledge information whenever you buy a gift card now. It’s entirely because of online scams.
- Charity scams
In today’s world, charities need our help more than ever. If you’re anything like me, you get a ton of requests for donations. When you are solicited online or on the phone by a charity you have never heard from before, never agree to send them money. If you want to support them, hang up and look them up online. Don’t let them send you a link since it could be fraudulent. Instead, look it up yourself and verify everything about the organization before you decide to donate.
- Romance scams
This has become a wildly successful scam because of the strong emotional impact. We all want to be loved, especially after the loss of a spouse or significant other. This scam typically starts with someone reaching out online, particularly after you like or make a comment on social media. The scammer, using a fake profile, attempts to start an online relationship with the promise of meeting up “soon”. That’s when the excuses start for not being able to meet in person. They bring up a slight issue, typically requiring money. People send the money, and yet the scammer creates a new reason why they can’t meet yet. The reality is that there is no person on the other end looking for love. They are just looking for your money and will drag out this scam for as long as you let them by continuing to send them money.
This list merely scratches the surface of all the scams out there today. If you want to learn more about how to protect yourself from elder fraud, join us next Tuesday, April 30 at 5:30 p.m. for a seminar presented by special agents of the FBI. Seating for this event is very limited, so RSVP at your earliest convenience or plan to attend our next one in October. To RSVP, call us at 609-486-5073 or visit https://www.reichassetmanagement.com/events.
Firm is not affiliated with or approved, endorsed, or authorized by the Federal Bureau of Investigation or any other government agency. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a
Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
