If you haven’t been scammed yet, chances are good you know someone that has. These days it seems that everyone has a “scammed” story. According to Federal Trade Commission data, consumers reported losing nearly $8.8 billion (with a “b”) to fraud in 2022. That’s an increase of over 30 percent from 2021. Of that number, more than $3.8 billion was lost to investment scams . . . more than any other area in 2022. That hits close to home. FYI, second place belongs to romance scams.
Senior citizens are most frequently the target of scammers. Seniors lose more than $3 billion each year. Targeted seniors suffer an average loss of $34,200! That’s a lot of money!
As practitioners in a field that has a rather tainted reputation, we’re very sensitive to financial scams. It is our desire to not only be above board, but to help you recognize a potential scam before it’s too late.
In general –
If it doesn’t “feel” right, it’s probably not.
NEVER give your personal/financial information to someone who is pressuring you. Better to lose out on a good deal than risk being scammed.
If someone calls you that you do not know, do not assume they are who they say they are. Avoid giving any information in these cases.
The IRS does not call people for balances due. The Social Security Administration does not call you if there is a problem with your account. They (like the IRS) will mail a letter.
If you’re not sure, put off the purchase or donation until you can do more research. Run it by a family member, friend, or trusted financial planner. Especially if you’re struggling emotionally (e.g., depressed or lonely).
Check your bank balance and credit card accounts frequently. If you see charges you don’t recognize, call your bank or credit card company immediately.
Familiarize yourself with the latest, most frequently used scams.
Below are links to two excellent articles that we recommend you read to get current with the latest scams.
https://www.experian.com/blogs/ask-experian/the-latest-scams-you-need-to-aware-of/
https://www.aarp.org/money/scams-fraud/info-2023/top-scammer-tactics-2023.html
As always, we’re here to help in any way we can. Please give us a call or shoot us an email with your questions or concerns.
Joel & Troy
Joel Nance, CFP® Troy Williamson, RICP®/Financial Planner
FTC Data: