Two Main Types of Financial Exploitation
THEFT
Who are the perpetrators? Contrary to popular belief, it’s not always strangers who commit these crimes. The perpetrators are often people the victim knows and trusts, such as family members, friends, or caregivers.
This occurs when a trusted individual steals money or belongings. Examples of theft are:
- Forging checks
- Stealing retirement benefits
- Using credit cards without permission
- Changing names on wills, bank accounts, life insurance policies, or real estate titles without permission
SCAMS
In scams, strangers deceive others into transferring money or assets through fraudulent schemes. Common examples include:
Text Scams - Scammers trick people into revealing sensitive financial information, such as passwords, login codes, or account numbers, by sending urgent texts and posing as trusted institutions like banks or credit card companies.
Tech Support Scams - Scammers pose as tech support representatives to gain access to victims' computers and financial information.
Investment Scams - Perpetrators lure investors with promises of high returns and low risk, only to disappear with their money.
Government Imposter Scams - Fraudsters pretend to be government officials demanding immediate payment for taxes or fines.
Romance Scams - Criminals use dating apps and social media to build relationships with victims and then ask for money.
Lottery Scams - Criminals claim victims must pay taxes or fees to access winnings from a lottery or raffle.
How to Protect Yourself
Be Aware of the Risks - The first step in protecting yourself is to educate yourself about the different types of the tactics used by scammers.
Stay Informed - Keep up-to-date on current scams and fraud trends by reading articles, newsletters, and government warnings.
Be Cautious - Don't share personal information or financial details with strangers, especially over the phone or online.
Trust Your Gut - If something seems too good to be true, it probably is.
Verify Requests - If someone claiming to be a government official or financial institution contacts you, independently verify their identity before providing any information.
Monitor Your Accounts - Regularly review your bank statements, credit card bills, and investment accounts for any suspicious activity.
Stay Connected - Maintain strong relationships with family and friends who can offer support and help you spot potential scams.
Consult a Trusted Advisor - If you're considering a significant financial decision, consult with a trusted financial advisor or attorney before taking any action.
Report Suspicious Activity - If you suspect that you or someone you know is a victim of a scam, report it immediately to the authorities and your financial institution.
In today’s digital age, financial scams are becoming increasingly sophisticated. By staying informed, being cautious, and taking proactive steps, you can significantly reduce your risk of falling victim to these schemes. Remember, knowledge is power. Equip yourself with the tools and information you need to protect your hard-earned money. As always, we’re here to help every step of the way.
