7 tips to help protect you from financial fraud

Scammers seem to be getting more and more sophisticated, and older adults are often the target — especially of financial scams. In fact, scams targeting Americans 60 and older resulted in over $3.4 billion in losses in 2023, an 11% jump from the previous year, according to the 2023 FBI Elder Fraud report.

And imposter fraud is on the rise. That email seemingly from your bank or broker, the urgent message from a tech company alerting you to a computer problem, or the notorious grandparents scam saying your grandchild is in trouble and needs money — all are examples of imposter fraud. It's easy to be taken in, so we all need to be on the alert and aware of how to protect ourselves and our finances.

At Charles Schwab, we're committed to providing information and resources to help keep older investors — and all investors — safe. So here are seven ideas to help you avoid falling prey to financial fraud.

1. Look out for unsolicited offers

These can come from a text, email or messaging app, as well as on the phone. Don't rely on caller ID to determine if a call is legitimate. Scammers use tools to make it appear they're calling from a genuine government or business number. Instead, confirm independently whether a business, utility or government agency is indeed trying to reach you. If you receive a call from a company you do business with and they ask for information, consider hanging up and calling the company directly using the customer service number listed on your invoice, account statement, or the corporate or government website. And be sure to report imposter scams to the company or institution being impersonated.

2. Avoid clicking suspicious links

Don't click on links or attachments included in unknown or suspicious emails and texts. In an email, hover over links to reveal the website's URL and see where the link really goes, and double check the sender's domain name in the email address to ensure it matches what you'd expect to see.

3. Beware of urgency and pressure tactics

Be cautious of communications urging immediate action or pressuring you to invest quickly with promises of guaranteed or unusually high returns. And be wary of investment opportunities based on alleged "insider" or confidential information.

Remember: If it sounds too good to be true, it probably is.

4. Check before giving remote access to your computer

Before giving someone remote access, especially if they proactively contact you saying there's an issue or suspected fraud, call the phone number listed on your financial institution's public site to verify you’re speaking with someone from the firm.

If you get an unsolicited call offering to fix a computer problem, hang up immediately. Companies like Apple and Microsoft will not contact you for tech support unless you've requested help, and they won't ask for personal information.

5. Don't give sensitive information

Is someone asking for credit card details, your Social Security number, or your one-time password? That's a red flag. Never share sensitive information unless you're sure you know who you're dealing with. Be skeptical of anyone requesting that you share your one-time password, as criminals may be requesting your code so they can login and access your money.

6. Don't send money to someone you don't know

There are so many easy ways to send money these days. Be extra cautious. Make it a rule to never send money to someone you don't know, someone you think you may know but aren't sure, or someone you've only met online.

7. Establish a trusted contact at your financial firm

As an added layer of protection to keep your accounts safe, many financial firms ask you to designate a trusted contact in case you can't be reached. This can be a friend or family member over 18 years old, who you trust and who is likely to know your current situation. If a financial firm suspects fraudulent or unusual activity on your account but can't reach you, your trusted contact can confirm things like your current contact information, health status and other parties on your account.

Your financial firm may not require you to name a trusted contact, but it's a good idea as a second line of defense. And be sure to update your trusted contacts regularly.

Whether you're concerned for yourself or a loved one, share these tips and encourage everyone you know to protect themselves in the face of increasing financial fraud. Want more ideas on how to keep your accounts safe? Visit us at schwab.com/schwabsafe for how-to guides, added tips, and more. We're committed to your security.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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