Emotion is a powerful force in investing. Investing based on emotion may work against long-term success. On the other hand, truly understanding the emotions that motivate you is vital to success, as wealth strategist Joe Maier explores in the Seven Deadly Sins of Wealth Management.
When it comes to online security, though, there’s less subtlety: investors absolutely must keep emotion in check. Scammers prey upon emotions to gain access to personal information and resources. Here are some examples.
Charity Scams
Some scammers are seeking donations toward illegitimate charities. They may likely ask for donations for people experiencing financial hardships or request money in support of vaccine research or medical supplies for healthcare facilities facing shortages. They may even impersonate a legitimate charity to increase the success rate of their attempts.
Telltale Sign: A real nonprofit organization will never ask for your personal information unsolicited.
What to do: Exercise caution if a charity contacts you first. Visit the charity’s website and find their legitimate phone number to verify and make any donations. If you are looking for a reputable nonprofit organization to support, researching your local United Way is a great place to start.
Economic Relief Scams
Scammers are pretending to be government representatives offering fake grants or assistance to those experiencing financial hardships due to natural disasters or other events.
Telltale Signs: The government will never communicate with you on social media or via unsolicited text messages, and you will never be required to pay a fee to receive funds.
What to do: If you receive a text message or see a social media post claiming that you qualify for a special government grant, do not provide your bank account or other personal information.
Romance Scams
With heightened feelings of isolation due to social distancing mandates, people may turn to online dating apps or sites to meet a new friend or online love interest. Scammers will create fake profiles as a method of tricking victims into sending money.
Telltale Signs: A scammer disguising themselves as your new friend may ask you to send them money or conduct financial transactions on their behalf. Be aware of someone who claims to be living or traveling outside of the country. At first glance, the stories may sound believable – payment requests for travel, medical expenses or other debts. A scammer will likely ask their target to pay by wire transfer, reloading gift cards or through payment apps like Zelle and Cash App – anything that gets them quick access to cash.
What to do: Exercise caution when communicating with individuals that you meet online, especially if they request financial transactions or assistance. Don’t send money or gifts to someone you haven’t met in person. If you suspect a romance scam, get input from someone you trust, and cut off communication if necessary. Contact your financial institution immediately if you think you’ve sent money to a scammer.
Keep Your Information Safe and Secure
We take the trust you place in us to protect your financial information seriously. Don’t hesitate to reach out to your advisor if you encounter something suspicious or believe your financial information has been compromised. Additionally, remember these tips to keep your information secure:
- Be overly cautious in times of uncertainty. If it doesn’t feel right, it probably isn’t.
- Slow down! Take your time reading messages. (An average user spends 11 seconds per email).
- Before going to an unfamiliar website, check the URL with free resources like VirusTotal or URLScan. You can also hover over the link to ensure it reveals the intended web address.
- Keep your computers and mobile devices up to date. Having the latest security software, web browser, and operating system are the best defenses against viruses, malware and other online threats. Turn on automatic updates so you receive the newest fixes as they become available.
- If you believe you’ve been a victim of identity theft, understand the steps you should take to resolve and repair your identity.
For more guidelines on keeping your information safe, visit our Security Tips page.
