The new year is often associated with a fresh start! We make resolutions, intent on improving our lives and sometimes we even follow through on them. It is not too late. There’s still time for one more resolution. You may benefit from making a resolution to stay on top of your personal cybersecurity in the new year.
Cybersecurity refers to the measures we, as individuals, companies, or governments, take to protect systems, networks, devices, programs, and data from unauthorized access, change, disruption, or destruction. Cybersecurity protects data while ensuring confidentiality, accuracy and accessibility by authorized users.
We live in an increasingly digital world. An unfortunate consequence of that is the more we use technology in our daily lives, the more effort we need to put in to protect our data. Cybersecurity is important because technology is important. Knowledge is power. The more you know about cybersecurity, the better prepared you can be to deal with scammers.
Here’s a brief list of recent scams that you should keep an eye out for as part of your New Year’s Cybersecurity Resolutions:
- Romance Scams
This is a type of cybercrime where a scammer creates a fake online persona to manipulate the victim into sending money to the scammer. Traditionally, these scammers avoid face-to-face interactions preferring to use messaging apps instead. They attempt to build emotional attachment quickly and then send an urgent request for money. Common tactics include the scammer wanting to visit you, reporting they were in an accident, or incurring sudden, unexpected medical costs. They promise to pay you back. They rinse and repeat until you stop sending money.
A good rule is to never send money to someone you have never met in-person. - Sweepstake, Prize or Inheritance Scams
“All you need is a dollar and a dream,” or so the New York State Lottery slogan used to proclaim. My father, who isn’t much of a gambler, always said that it was an honest advertisement. You pay a dollar, and you get to dream. We’ve all done it; dreamed of what we would do with a large windfall of money. With this type of cybercrime, the scammers prey on those dreams.
You could have everything you ever wanted, the only thing standing in your way is a modest fee. If you would just cover the shipping, taxes, or custom charges, then you could be living your dream in no time. Even simpler, just provide your banking information or personal data to prove your identity and the scammer will be sure to send you more funds than you know what to do with.
You get so swept up in your good fortune, but you don’t have time to stop and ask yourself relevant questions. Did I enter this contest? Do I have a deceased great-aunt in England who left me millions? How did this Nigerian prince get my contact information? - Investment or Pig Butchering Scams
Don’t miss out on this once in a lifetime opportunity! Like sweepstake scams, investment scams prey on the fear of missing out. Like romance scams, the investment scammer wants to establish a relationship with you, so you are more likely to trust them. Investment scammers lure their victims to invest money into seemingly legitimate and profitable ventures. They make it appear that your money has been invested and is earning the promised exorbitant returns, while they siphon it way to offshore accounts or use it to reel in other victims. They may even have websites and statements that appear legitimate. Verify the legitimacy of brokers and the credentials of financial advisors. Get the details in writing and do your due diligence. If it seems too good to be true, it likely is. Don’t be pressured by fear of missing out into making quick decisions when it comes to your finances. - Tech or Fraud Support Scams
“Hi. I’m from Microsoft. We’ve detected a virus on your computer. I need to remote in and fix it.”
This type of cybercrime typically involves an unsolicited phone call or a pop-up warning in your web browser. The scammer impersonates a trusted company and asks for remote access to your computer. “They’re going to run a scan for viruses or malware.” Unfortunately, scammers are likely going to install malware on your computer instead. And after “detecting” malware on your system, they will pressure you into paying for repairs, software, a new computer, or other products and services you don’t need.
Or maybe they’re calling from your credit card company or bank.
“Did you make a charge for $1,000 to X company? Oh, you didn’t? Don’t worry, we’ll have this sorted out in no time. We’ll refund your money; I just need to verify some information. Oops, I made a mistake and sent you too much money, can you refund it? I’d prefer a wire transfer, a gift card, or maybe cryptocurrency.”
I had a friend who received a call like this from her bank’s fraud department. She’d just taken a cybersecurity training course. With that knowledge fresh in her mind, she wasn’t sure if she was talking to her bank or a scammer. She politely told the person on the other side of the phone she would call the phone number on the back of her bankcard and verify the transaction was not fraudulent. Then she hung up. Before she could dial the legitimate phone number for the bank, the scammer called back to yell at her for not trusting them. According to the caller, she didn’t need to call anyone else, she could see the number on the phone.
Unfortunately, caller id numbers can be easily spoofed by scammers. A bank is not going to call you and ask for your private data. Always access the information from another source, log into your banking app or call a legitimate number to check. - Government Scams
This cybercrime uses intimidation and threats to get victims to comply. No one wants to be in trouble with the IRS. The scammer pretends to be calling from the Social Security Administration, the FBI, IRS, or another law enforcement agency. Their goal is to convince you that you missed an important court date, misfiled your taxes, missed a deadline for important paperwork, or made some other mistake. You need to pay a fine to the government to correct your mistake and if you don’t, the consequences will be harsh. They are going to arrest you; in fact, they are sending local law enforcement to take you into custody right now. They may try to convince you it’s an ongoing investigation so you shouldn’t tell anyone about it. Not your lawyer, your financial advisor, nor your loved ones. Your only hope is to immediately pay the fine to make it all go away.
Realistically, If the FBI has enough evidence against you to issue an arrest warrant, they are not going to be kind enough to call you in advance. They are not likely to give you a heads up that the local police are on their way. They will not call and threaten you. The IRS usually works through mail, not phone calls. They will not demand immediate payment. The government does not accept gift cards or cryptocurrency as payment. Call the actual FBI, Social Security Administration or IRS, if you are concerned, but don’t accept as truth what a person you can’t see and don’t know tells you over the phone. When in doubt ask for help! Contact a lawyer. Talk to your financial advisor. Reach out to your tax preparer. Unlike what many scammers claim, asking for help from experts or outside counsel will not put you in more trouble. - Real Estate Scams
The largest purchase many of us will make in a lifetime is buying a home. As anyone who has bought a house can probably attest, there are many moving parts in the process before you are finally handed the key. Endless paperwork filled with important personal information like social security numbers or bank statements are snatched from cyberspace by the scammer because the emails channels were not secured. Make sure you are using encrypted communications.
Mortgage companies, financial institutions, escrow companies, real estate agents, title companies, and lawyers are just some of the people you may need to interact with as you pursue your dream of home ownership. What is so insidious about this type of cybercrime is that the tumultuous process makes it so a change, even at the eleventh hour, doesn’t necessarily stick out as unusual. Scammers may intercept emails or electronic communications, and substitute real wire transfer instructions for false ones. Suddenly, you’ve wired a large amount of your life savings to the scammer’s accounts. Don’t trust the emailed instructions. Call a verified known number (not the one in the email) and verbally confirm the numbers. This small step to authenticate the wire instructions could prevent a major setback to your home ownership dreams.
Successful cybercrime can have widespread consequences. Cybercrime can result in financial loss, identity theft, fraud, blackmail, and/or reputational harm. Correcting a cyber breach costs money, time, and energy. There is no guarantee that the cybercriminal will be caught or funds lost will be recovered. Victims may experience emotional distress, shame, and in some tragic cases, loss of life.
Considering these serious repercussions some people may be tempted by the idea of eschewing technology all together. While on the surface that solution may appear attractive, it ultimately is not very practical. It’s difficult to function in a modern society where computers are everywhere: Have you ever tried opening a bank account without an email? Or log into anything without a cellphone for two factor authentication? Or tried to find a payphone or internet café? There is inherently some level of risk we must take to function in the modern world.
I recently took a driver’s safety course. Over and over, it drilled home the concept that you cannot control what other drivers choose to do. You can only control yourself. Making good choices behind the wheel doesn’t guarantee you will never be in a car crash, but it reduces the odds of a serious crash happening. Cybersecurity is the same. It’s not a guarantee that nothing bad will ever happen. It reduces the risk and prepares you to know how to react when those bad things happen.
Here’s a few easy steps you can take to reduce your risk of falling victim to a scam.
- Verify. Verify. Verify.
Maintain a healthy sense of skepticism. If something seems to be too good to be true, trust that instinct (because it likely is).
Ask questions. If something doesn’t sound right, do your research, ask follow-up questions, and check multiple trusted official sources.
Don’t use the links or phone numbers that are sent via email or text. Double check that the URL is not a subtle variation of the real one. Don’t trust caller ID and call back on phone numbers you have verified. Log into your accounts through the app or official website instead of clicking on that link in the text message or email.
Pay attention to inconsistencies and question them. Why is my grandchild calling me from a prison in Mexico asking for money? I didn’t know they were traveling out of the country. They are supposed to be at college in New York. Maybe you should call their cell number to check on them before wiring them $20,000 to bail them out. - Take your time.
The older I get, the more I’m convinced that there are few things in life that are truly urgent. There is nothing wrong with taking your time, practicing your deep breathing, and then responding to the plethora of emails, text messages, and phone calls that all desperately want your immediate attention.
Ask yourself a series of questions:
Do I recognize the sender?
Was I expecting this communication?
Is this communication threatening or pushing me to take quick action?
Is the request unusual?
Are there misspellings in a company or person’s name or blatant grammar mistakes?
Slow down and proceed with caution. A little more time and due diligence taken initially can save more work later. - Honesty
Victims of scams often feel a deep sense of shame and embarrassment. It can be hard to admit to a mistake but keeping secrets only benefits cybercriminals. If you think you’ve been the victim of a scam or fell for a phishing link, don’t be afraid to say something. A mistake hidden is a mistake compounded. Reach out to the experts. There’s a reason you’ve retained a lawyer, financial advisor, or accountant. Give them the opportunity to help.
Cybersecurity is about learning how to use technology responsibly and securely. This year make the resolution to implement cybersecurity practices to protect yourself. Level Financial Advisors is here is help.
Bethany Wagner
Chief Compliance & Cybersecurity Officer
Level Financial Advisors
This article by Level Financial Advisors, Inc. (“Level”) is intended for general information and educational purposes only. No portion of the article serves as the receipt of, or as a substitute for, personalized investment advice from Level or any other investment professional of your choosing. Before acting on any information contained in this article, it may be necessary to consult with the appropriate professionals to receive individualized advice.
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