Financial Scams
Ever received a call from the IRS? You shouldn’t! Has your grandson ever called you “in trouble and in desperate need of money NOW?” With a few strange exceptions, this shouldn’t happen either. Have you won a sweepstake you don’t remember entering? Unfortunately, at least once a year, I get a call from a client, friend or loved one who recently received one of these calls. Thank the Lord, we have always been able to intervene before any money has changed hands, but for some people, that isn’t the case. Financial scams are a conversation I wish I never had to have and a blog post I wish I never had to write, but it’s our job to help protect our clients and their financial futures. So, today I am going to highlight some of the common financial scams we see, how to spot them and how to protect yourself and your loved ones.
- The IRS: I have received a number of frantic calls from clients over the years because someone “from the IRS” contacted them telling them they owed taxes and if they did not pay immediately, they would be arrested. First a foremost, the IRS will always contact you by mail prior to calling you about taxes and they will never demand immediate payment. Secondly, the IRS will not threaten arrest over the phone. If you receive a call like this, you should hang up immediately and contact the Treasury Inspector General for Tax Administration at 1-800-366-4484. You should also notify your financial professional and anyone else who would potentially answer the phone such as a spouse or another family member living at home.
- The grandkids: This one hit especially close to home when my grandpa received a call from someone pretending to be my older brother. The caller said he was in trouble and needed money wired to him right away. Now, my grandpa is a pretty sharp guy and knew Billy wouldn’t make a call like this, but what really tipped him off was when the man asked him “who is at home with you right now?” My grandparents have been married for over 60 years and grandma is the only person who is ever home with him. Fortunately, my grandpa was wise enough to pick out the discrepancies in the man’s story and hung up the phone. It’s sad that someone would prey on a person’s love for their family. What grandparent wouldn’t be more than willing to help out a grandchild in trouble? If you receive a call like this that you think could truly be legitimate, ask them if you can call them back on the cellphone or home phone number that you have for them. If that’s not an option, let them know you will call another family member (maybe a parent or a sibling) to verify the story. If someone truly is in trouble, other people in the family should likely know about it.
- Medicare: With all US citizens over the age of 65 qualifying for Medicare, it is a very simple scam. Without having to research any private health insurance companies, perpetrators can call posing as a Medicare worker and request your personal, financial and medical information. If you do not know the person on the other end of the phone, do not give them your personal information. Often times, legitimate medical billing companies will already have your personal information and will merely ask you to verify the last four of your social or date of birth. If you are leery or uncomfortable with the information being requested from you, hang up and call a number that you know belongs to your insurance provider, whether that be Medicare or private insurance.
- Charity: I know, this one is disgusting. To pose as a charitable organization and prey on the kindness of others is truly gross. Unfortunately, we are seeing this more and more since the beginning of the Covid-19 pandemic. These scams tend to take one of two forms. The first is a charity that you’ve never heard of and the second is a person posing as a well-known charity. According to AARP, some of the warning signs are pressure to give as opposed to a welcoming of your donations if you choose, a “thank you” for a donation you didn’t actually make, or a request for urgent payment via cash or wire (harder to trace). If you feel inclined to give to a charity, we strongly encourage researching that charity first. A simple google search can give you a lot of information. Watch web addresses very closely, it’s not uncommon for fraudulent organizations to choose a name and web address that is very similar to a well-known charity with just a few subtle changes. Furthermore, every state has its own charity regulator listed on www.nasconet.org that can help determine the legitimacy of many charitable organizations.
Of course, these are just a few of the many financial scams that are out there today. Our rule of thumb is this, if you feel rushed, disrespected, confused or if it just doesn’t sit right with you, get someone else involved. If it is a legitimate request for personal information, financial assistance or payment of some kind, it most likely can wait a few minutes while you do a little research or reach out to a trusted contact. If it is illegitimate, your skepticism is often times enough to scare them off. Financial scams can happen to anyone, but they are definitely more common amongst people over the age of 65. If you have a loved one who falls into that age group, talk to them about some of the common financial scams. I encourage you to go back and read my blog posts titled Who’s in Your Corner and Women & Wealth Part 2. And remember to be gentle, often times when someone has fallen prey to some form of scam, it is a very personal and sometimes embarrassing thing for them. Unfortunately, they are not uncommon and it could happen to any of us. It’s not wrong to keep your guard up when it comes to your financial and personal information.
