Recognizing Investment and Tech Support Scams
October is Cybersecurity Awareness Month, and at Prepared Retirement Institute (PRI), we take digital security seriously through ongoing training to stay informed about evolving cyber threats and to help keep you informed.
An earlier PRI article, “Protecting Your Personal Information in a Digital World,” was our first step in helping readers recognize and guard against cyber fraud. This article expands on that foundation by examining two other common scams: investment scams and tech or fraud support scams.
The goal is not to cause concern about every phone call, email, or text message. Instead, this article offers practical tools for recognizing suspicious activity, pausing before responding, and knowing what to do when something does not seem right.
Investment Scams
Investment scams often sound too good to be true because they are. Scammers may make contact by phone call, text message, email, or social media, sometimes as part of a group message. An unexpected investment message from an unknown sender is generally best deleted and reported as spam.
The sender may claim a mutual contact, a tactic intended to lower the recipient’s guard. The pitch may describe a “once-in-a-lifetime” opportunity, “incredible gains,” or “huge upside.” Any promise of high returns with little or no risk warrants particular caution.
Scammers often request payment by wire transfer, cryptocurrency, or a website that appears legitimate, and some pitch supposed offshore investments. These payment methods are favored because funds can be more difficult to recover once a fraudulent transaction is completed.
Questions to Ask Before Responding
Is the person or firm known and verifiable?
The individual and the firm they claim to be affiliated with can be researched on FINRA BrokerCheck (https://brokercheck.finra.org/), a free tool from the Financial Industry Regulatory Authority. Requesting the individual’s and the firm’s Central Registration Depository (CRD) numbers is also a reasonable step.
What is being promised? High returns, little to no fees, something for free, or a gift are common enticements used to draw people into a scam.
Has anything been provided in writing? Investment information, such as a prospectus, should be provided in writing and reviewed carefully. If any information is unclear, asking questions or seeking a second opinion is appropriate.
Does the message contain misspellings or other red flags? The SLAM method (Sender, Links, Attachments, Message), covered in “Protecting Your Personal Information in a Digital World,” can help determine where a message came from.
Tech Support and Fraud Support Scams
Tech and fraud support scams differ in one important way: who contacted whom.
Tech support scams usually begin with an unsolicited phone call, text message, or computer pop-up warning of an issue. The scammer requests remote access to the device. Once access is granted, the scammer may claim the device has a virus and apply pressure to pay for unnecessary services or share financial information.
Fraud support scams start in the same manner: an unsolicited phone call, text message, or email reports a fraudulent charge on an account. Once the recipient confirms the charge is not theirs, the scammer requests remote access to the device and insists the recipient log in to their bank account so a refund can be deposited. The scammer may then claim that something went wrong with the refund deposit and request a wire transfer, gift card, or cryptocurrency.
Ways to Reduce Risk
Do not allow remote access to any device or share payment information during an unsolicited call.
Do not rely on caller ID. Scammers use “spoofing” techniques to make a phone number appear legitimate. Hanging up and calling back at an independently verified number is always appropriate.
Do not call a phone number or click links in a pop-up alert. The pop-up could be a scam, and legitimate antivirus warnings will not ask users to call tech support.
Share financial information carefully. If the legitimacy of a request is uncertain, stop and verify it independently before providing any information.
Cyber scams can happen to anyone. The most effective habit is a simple one: pause, verify, and ask questions before taking any steps.
What to Do If a Scam Occurs
Our team is here to help. Clients who believe they have been the target of a scam should contact PRI immediately at 215-997-5700. The PRI team can assist with reporting the scam to Charles Schwab and contacting the credit bureaus if needed. Contacting the local police department’s non-emergency line is also recommended, and scams can be reported to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.
