By Eric Reich
A few weeks ago, I wrote about online scams and how to protect yourself from them. Shortly after that was published, we held an elder fraud seminar with a special agent from the local FBI office. If you missed it, don’t worry, we have invited them back to host another one at our office on Thursday, Oct. 10. You can RSVP for this event via our website or by calling our office at (609) 486-5073.
One scam that can be potentially devastating came up several times during the event was the “banking scam”. This was so alarming that I felt the need to write an entire article devoted specifically to this scam. I personally know two different families, both close friends, who were victims of this scam, so it is near and dear to my heart to make sure it doesn’t happen to anyone else ever again.
Here’s a few ways the bank scam works:
Scam No. 1
It starts with a glitch in your computer screen. Then, it freezes and tells you to call Microsoft (or similar). When you call the support number, they tell you they noticed you have been scammed, and they transfer you to a “representative” from your bank. The representative is a bad actor and not an actual representative from your bank. They then say they need you to enter specific information for them to stop it from happening. When you do, it gives them control of your computer. Next, they ask you to log into your bank account. Once you do, they can now see what you see. They then tell you whatever you do, do not turn off your computer, which is exactly what you should do as soon as the pop-up happens in the first place. Immediately turn off your computer without calling or speaking with anyone. Next, they tell you that they are “freezing” your account to prevent any more fraudulent transactions, but to do that, they need you to move the funds out of your account via Bitcoin, etc. This is one of the many reasons I think Bitcoin is doomed to fail in the future, but that’s for another article.
Scam No. 2
This one starts off the same with the pop-up notice. When you call this time, however, they tell you that your bank is fraudulently stealing money from you and that they are transferring you to a representative from the surveillance department of your bank. The representative is fraudulent, of course. They again have you log into your account. They will tell you not to discuss any of this with your bank because the fraud on your account is an “inside job”. You are again asked to move the funds out and simply tell the bank you are making “an investment”. The fraudsters/bad actors have you wire them the money to a “holding account” so that your bank reps can’t take any more money from you.
How big is this problem? Last year, 50 billion dollars, yes billion, was stolen. That’s nothing since only about 10% of cases are actually reported because people feel foolish for letting themselves be scammed. That means the real number could be upwards of $500 billion.
Do not feel stupid if you fall for these scams. These people are professionals, and it’s their full-time job, which they are good at. Always report any scam you fall victim to by visiting www.ic3.gov.
For more information, visit this website: https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/elder-fraud. You can also call (833) FRAUD-11, which is (833) 372-8311, to learn how to protect yourself.
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.
