Staying Ahead of Scammers: Common Threats to Watch For
As technology evolves, so do the tactics of scammers targeting individuals, particularly those with meaningful financial assets. As with anything in life, awareness is the first step toward prevention. Based on our experience serving wealth management clients, we highlight the most common scams in email, phone, text, and the physical world—and how you can protect yourself.
1. Email Scams: Used to impersonate trusted entities like banks, government agencies, or even your financial advisor.
Common Tactics:
- Phishing Emails: Requests for sensitive information like account numbers, passwords or personal information. This is often done under the guise of urgent action needed.
- Fake Invoices: Fraudulent emails claiming payment is due for services or subscriptions you never signed up for.
- Account Access Scams: Messages warning of a locked account and prompting you to click a link to resolve the issue.
How to Stay Safe:
- Verify the sender’s email address carefully—scammers often use slight variations of legitimate domains. (e.g. Schwab.com versus Schwaab.com)
- Avoid clicking on links or downloading attachments from unknown senders.
- Reach out to the institution directly through official channels if you’re unsure.
2. Phone Scams: Rely on creating a sense of urgency to manipulate victims into revealing personal or financial information.
Common Tactics:
- Impersonation: Callers pose as IRS agents, law enforcement, or bank representatives, claiming you owe money or that your account has been compromised.
- Tech Support Scams: Fraudsters pretend to be from a technology company, claiming that your computer is at risk and requiring remote access or payment for “repairs.”
- Investment Pitches: High-pressure sales calls promoting fake or unrealistic investment opportunities.
How to Stay Safe:
- Legitimate organizations will never demand payment or personal information over the phone.
- Hang up if the call feels suspicious, and independently verify the number by looking it up.
- Use call-blocking technology to reduce spam calls. The iPhone has call blocking available at Settings > Apps > Phone, then turn on Call Blocking & Identification.
3. Text Message Scams (Smishing): have become more prevalent now that everyone has a mobile phone they rely on and use texting more frequently.
Common Tactics:
- Fake Alerts: Texts claiming suspicious activity on your bank or credit card accounts, urging you to click a link.
- Delivery Scams: Messages from “couriers” asking for payment to release a package.
- Gift Card Fraud: Posing as a trusted contact asking for gift cards to resolve an “urgent” issue.
How to Stay Safe:
- Never click links from anybody or text you do not know the source or reason for.
- Contact the company directly if a text appears to be from a legitimate service or company you have dealings with.
- Enable spam filters and “delete and report junk” for unwanted texts. On the iPhone, you can filter unknown senders at Settings > Messages >
- Message Filtering, then turn on Filter Unknown Senders.
4. Physical World Scams: Not all scams occur online—some happen face-to-face or involve mail and physical documents.
Common Tactics:
- Mail Theft: Thieves steal sensitive documents from your mailbox, such as checks or account statements.
- Contractor Fraud: Fraudulent contractors offer services but disappear with your money without completing the work. Never prepay any significant amount to a contractor that you don’t know well.
- Impostors: Individuals posing as utility workers or other professionals to gain access to your home or financial details.
How to Stay Safe:
- Use a locked mailbox or consider paperless statements for sensitive information.
- Vet contractors thoroughly and avoid paying large sums upfront.
- Request identification from anyone claiming to represent an organization before allowing entry to your home.
Final Thoughts
Staying informed about these scams can significantly reduce your vulnerability. Remember:
- Always verify communications directly with the organization or person involved.
- Be cautious of unsolicited requests for personal or financial information.
- When in doubt, consult your financial advisor or a trusted professional before taking action.
By recognizing these tactics and taking preventive measures, you can protect yourself and your finances from the growing threat of scams.
About the author. Rob Siegmann is a partner and chief operating officer of Total Wealth Planning, a fee-only fiduciary financial planning firm in Cincinnati (Blue Ash), Ohio. He is often quoted in industry publications such as The Cincinnati Business Courier, Wall Street Journal, Yahoo finance, Financial Planning Magazine, Cincinnati Enquirer as well as others. Rob is grateful to serve others, including his team of CERTIFIED FINANCIAL PLANNER™ practitioners and the clients they serve, so they can live their greatest life through well informed and prudent financial decisions. Rob can be reached at rsiegmann@twpteam.com.
