Talking about fraud: How you and your loved ones can spot scams and stay protected

Scammers are experts at impersonating banks, government agencies, businesses, and even family members. We have heard traumatic stories from clients and loved ones who have fallen victim to or narrowly escaped fraud. For many people, the hardest part is not knowing what warning signs to look for. Below are some common scam schemes, the corresponding risks, and what you can to do to avoid being a victim.

 

1. Bank Impersonation Scams

• The scenario : You receive a call, text message, or an email that appears to come from your bank. They claim there is an urgent problem with your account and they threaten to freeze it unless you act immediately.  They may ask you for your online banking credentials, like your username or password, and ask you to transfer money to a “safe” account.
• The risk :   Victims typically   lose thousands of dollars or even the entire balance of their account, and they may face account recovery hurdles   because the transfers bypass standard bank protections.
• What to do : If you receive a call, hang up.  Do not call the number back or call any number provided by the suspicious caller.  If you receive a text or an email, do not reply or click any links they provided.  Next,   call your bank using the official number on their website to verify there is a real issue with your account.  Remember it is possible your bank will reach out to you if they detect   suspicious activity or potentially fraudulent transactions on your account,   but always remove any doubt about the legitimacy of the communication by contacting your bank directly.      

2. Government Impersonation Scams

• The scenario : You receive a message claiming to be from the IRS, the Virginia Department of Taxation, Social Security, road/bridge toll authorities, or another official organization. They claim a payment is overdue, and if you do not pay immediately, there will be consequences.   
• The risks : Victims typically reveal   sensitive information, including Social Security numbers, dates of birth, and bank account details that may result in identify theft.   
• What to do : Do not respond and do not click on any links provided in the message. Contact the agency or organization directly using the official number on their website.

3. Family Imposter Scams

• The scenario : You receive a call from a family member who claims to be in trouble, such as an arrest, car accident, medical crisis, or a lost phone. They pressure you to send them money before you can verify their story. They may even ask you to   keep the emergency secret from other family members.
• The risks : In addition to financial loss, victims often suffer   emotional, and psychological harm   from the exploitation of family trust and the fabricated panic created by the scammer.
• What to do : Although their voice may sound familiar, stop and think before acting emotionally. Hang up and contact the family member directly using a known phone number to confirm if they are in an emergency situation. If you are unable to reach the family member, reach out to other relatives to verify the emergency and to alert them of the call you received in case they are also targeted by the scammer.   

4. Technical Support Scams

• The scenario : You receive a call from someone claiming to be with technical support from your internet provider or computer security from Microsoft or Apple. They claim to have discovered a threat on your computer, like a virus, and request remote access to your computer to remove it.
• The risks : Once the scammer has access to your computer, they can steal financial information and personal data that often results in identify theft. They can also ransom your computer if you do not comply with their demands, and lock you out of your computer making it unusable.   
• What to do : Hang up immediately and do not provide the scammer with remote access to your computer. If you allowed them access,   unplug your internet router so the scammer can no longer connect to your computer. Also   shut down or restart your computer right away. Change passwords for your email, online banking, and any accounts linked to your computer. Lastly, contact your bank so they can review your account for any unauthorized transactions.   

 

These core rules may also help protect you from scammers and encourage safe habits:

• Do not answer calls, text messages, or emails from someone you do not know.
• Never click on links or open attachments in unsolicited or unexpected messages.
• Be suspicious of any urgent request for money. Even a legitimate emergency can withstand a few minutes for verification.   
• If payment is demanded by wire transfer, gift cards, bitcoin, cryptocurrency, or via an app on your phone, it likely is a scam. Government agencies, utility companies, and legitimate businesses will never demand payment using pre-paid gift cards.
• Independently verify before giving any sensitive information or sending money.
• Use strong, unique passwords on accounts to help keep them   secure.
• Create a secret word or phrase that only your family members know to use in an emergency.
• Share with loved ones any scam or fraud attempts you encounter so they are prepared and know what to do.

As we age, and the world gets more complex with accelerating technology, it can be helpful to pass off certain financial tasks to trusted loved ones. A general durable power of attorney allows   you to appoint a trusted person to make legal and financial decisions on your behalf.    It is “durable” because it continues even if you become incapacitated. A Power of Attorney terminates at your death, but you can revoke or update it during your life. The person you name to act on your behalf will have access to your sensitive financial information so it is essential that you choose someone you completely trust. You may also name someone as a backup in case your first choice is unable to serve. Although it may be hard to choose who you want to act on your behalf, qualities to look for include someone who is dependable, responsible, organized, maintains good records, and most importantly is willing to serve in your best interest.

 

Raising awareness about scams is critical so the warning signs are recognizable. Knowing how to act can give you peace of mind that you will not be the next victim. If you would also like peace of mind regarding estate planning,   please contact Berdan Law today for a free consultation. Partnering with an experienced attorney ensures your estate plan is tailored to your specific needs and accomplishes your goals.