Popular Financial Fraud Tactics in 2024
With the rapid advancement of technology, financial fraud has unfortunately kept pace with innovation. The types of financial fraud that were common just a few years ago have taken a back seat to more creative and destructive tactics. It’s critical to remain vigilant against these new tactics being employed. Below are some of the most prevalent fraud tactics that have been making headlines this year.
1. Personifying a company via email – They will find out where you bank and send you an email from "[bank name] [customer service] @ gmail.com" - a seemingly corporate email. But that is not a legitimate bank email. I have personally received many of these emails in recent years.
2. Paid Google Promotions – They will pay Google to prioritize their phony webpage for a short time in a certain zip code and then blitz that area with scam calls for a few hours.
Recently a friend of mine received a call from what they thought was Amazon regarding a return request they had submitted. They asked him to verify his card information. Before providing that information he Googled the phone number calling him, which showed up as the first Google result as “Amazon Customer Service.” Because of this, he thought it was legitimate and provided the information. It turned out they had paid Google to promote that webpage for that one day only and were targeting people in his area in rapid succession.
3. Deepfake Fraud - With advances in artificial intelligence, deepfake technology has become a growing concern. Fraudsters use AI-generated audio recordings to impersonate people. In one example I heard about, they called the target’s son and got him to answer a few basic questions. They recorded his voice and using his tone and response used technology to record a fake audio recording saying that he was in jail and he needed to be wired money to post bail. They then used the recording to call his parents, who then wired the money thinking it was their son calling.
Tips for avoiding scams
1. Simply slow down! Don’t make any decisions about providing information or making a payment without pausing. Nothing these days needs to be done right away. Taking the time to think about the request often provides clarity amid a busy life with many thoughts preoccupying us.
2. Do not answer calls from unknown numbers. Let them leave a message and call the company back directly.
3. If you receive a call that you did not initiate, do not answer with personal information. Hang up, find the company’s contact information directly on their website, and call back.
4. Use unique passwords. One way that I’ve seen people create unique but easy-to-remember passwords is by using the company or website name in the password.
a. First 3 letters I.E - password is “retire1?!” so for Facebook they would use Facretire1?! - using the first 3 letters of Facebook “Fac” followed by their password.
b. Two letters then the rest of the password – I.E - password is “retire1?!” so for Facebook, they would use Faretire1?!cebook - using the first 2 letters of Facebook “Fa” followed by their password and then the rest of the word.
This tactic is easy to replicate across all platforms and there are endless variations that you can use. All you have to remember is the main password and the variation you plan to use (i.e first two letters of the word, then the password, then the rest of the word).
As financial fraud tactics evolve and adapt to technological advancements, staying informed is essential. Stay cautious, stay informed, and stay safe.
Happy Planning,
Alex
This blog post is not advice. Please read disclaimers.