In recent years, financial security for retirees has become more uncertain than ever. This growing concern highlights the critical need for retirees to remain alert and well-informed about the sophisticated scams threatening their hard-earned savings.
The increase in scams isn’t just a matter of rising numbers—it’s about the ever-evolving tactics of fraudsters. Modern scammers craft highly convincing schemes designed to deceive even the most cautious individuals. Shane Tenny, CFP®, delves into the tactics fraudsters use and what you can do to avoid being scammed.
Transcript:
[00:00:02.390 --> 00:00:26.740] Hi there, Shane Tenny, managing partner at Spaugh Dameron Tenny, and I want to talk today about a really serious topic, and that is the prolific rise in financial scams. In 2023, the FBI's Crime Complaint Center recorded over 880,000 complaints of financial scams totaling over 12 billion dollars, and the trend line is not looking good.
[00:00:27.070 --> 00:00:39.730] I want to take a minute and talk to you about the anatomy of the scams that we are seeing just anecdotally and 6 things that you can do to have your antenna up and help protect yourself.
[00:00:40.400 --> 00:00:55.689] We all know the characteristics based on stories we've heard of people being conned out of money by receiving scary phone calls, being convinced to transfer money, and things like that. But there are patterns that you can watch out for.
[00:00:55.900 --> 00:01:15.760] Number one authority. These scams almost always, regardless of whether initiated by text, message, by email or by a phone call. There is always someone on the other end of the line posing as someone in authority, perhaps a bank representative, a government official, or someone working for a regulatory agency.
[00:01:16.250 --> 00:01:19.830] That alone is an important thing to be aware of.
[00:01:20.530 --> 00:01:22.990] The second thing is urgency.
[00:01:23.350 --> 00:01:34.170] The communication you'll receive, if it's a phone call, is always emphasizing, there is a crisis and urgent situation that needs to be resolved, and time is of the essence.
[00:01:34.760 --> 00:01:42.709] The 3rd factor that we're now seeing that is really important to be aware of is secrecy or isolation.
[00:01:42.910 --> 00:01:59.320] In many, many cases, the victim is told and convinced that they are not allowed to tell anyone about this for some supposed reason - Don't tell your spouse. Don't tell anyone this is a secret. You need to deal with this by yourself.
[00:02:00.030 --> 00:02:02.989] And then the 4th thing is fear.
[00:02:03.100 --> 00:02:10.919] There's some penalty. There's some problem. There is some reason why action is needed urgently, without telling anyone.
[00:02:11.580 --> 00:02:30.560] If that sounds like anything you've heard of before or experienced. You know what I'm talking about. Watch out for those 4 things again: somebody imposing with authority, urgency, talking about secrecy, and imposing a penalty or a problem, including even jail time we've heard in some things.
[00:02:31.530 --> 00:02:33.169] With that said, what can you do?
[00:02:33.450 --> 00:02:41.010] One of the 1st things I think is really important is to have humility; you could be a victim, so acknowledge it.
[00:02:41.250 --> 00:03:01.729] These con artists are not running around like the 1920s with black and white striped shirts and black bandit masks looking like crooks. These are professionals with great sales, scripts, good phone manners, no accent. These are people who gain your trust that they can help you avoid a big problem.
[00:03:02.190 --> 00:03:07.459] So, acknowledge that this is happening to people just like you and me.
[00:03:07.830 --> 00:03:12.149] The second thing is verify, verify, verify, verify.
[00:03:12.260 --> 00:03:15.300] I can't say it enough. Pay attention.
[00:03:15.700 --> 00:03:22.760] Just a few months ago I was meeting with a very smart, credentialed client. He has a great professional career.
[00:03:22.870 --> 00:03:43.759] And he admitted to me with tears that he received a phone call from someone posing as an employee of a governmental agency. They used a real name that he verified independently by Google searching it, and they convinced him to obtain and transfer money to them over the span of a few days without telling anyone.
[00:03:44.150 --> 00:03:49.729] He tried and did verify the name of the person who was supposedly calling from.
[00:03:49.950 --> 00:03:52.570] And it [the money] was irretrievably lost.
[00:03:53.090 --> 00:04:06.100] Verify as best you can. If you receive a text message or a phone call telling you to call back some institution. Go online, look up the institution, call the phone number that's posted there publicly.
[00:04:06.780 --> 00:04:10.569] The 3rd thing is, do not keep this a secret.
[00:04:10.760 --> 00:04:25.019] If you receive a phone call, text message, email imploring you to not tell anyone, tell someone. Important things are never secrets. Tell your spouse, get a second opinion. Bring someone else into the loop.
[00:04:25.600 --> 00:04:39.950] And I would say the flip side is true. If you see your spouse, or a family member, or a friend acting strangely, or saying they have to just deal with something, that is a huge warning sign that they are the victim of financial fraud.
[00:04:40.930 --> 00:04:49.839] Number 4. Take your time. The sense of urgency is working against you. Slow down, breathe, talk to someone.
[00:04:50.370 --> 00:05:10.130] Number 5. Be very suspicious of weird money transfer requests; Request to use gift cards to pay something off, request to wire money, request to use cryptocurrency. All of these are weird, aren't they? Yeah, use your common sense. That's a big sign that something is not right.
[00:05:10.340 --> 00:05:12.439] And finally, stay informed.
[00:05:12.660 --> 00:05:28.640] Watching this video is hopefully a help to you. Pay attention to notices. Make sure to update the software on your computer in your phone. Those operating system firms are constantly working to improve security of those systems to protect you.
[00:05:29.460 --> 00:05:45.599] And finally, in this day and age, when financial scams are so prevalent all around us, you may find it helpful to work with a financial planning firm that knows you personally and has a relationship with you.
[00:05:45.890 --> 00:05:54.169] At Spaugh Dameron Tenny, we have deep relationships with our clients. We know them, their families, their goals, and their patterns.
[00:05:54.700 --> 00:06:03.760] It's been more than one occasion where we act as a 1st line of defense. Knowing something just doesn't seem right here.
[00:06:04.190 --> 00:06:13.409] If you would benefit or have an interest in working with a boutique financial planning firm that will take an interest in knowing you and your family, we'd be delighted to have a conversation.
[00:06:13.800 --> 00:06:16.249] I hope this helps you stay safe.
[00:06:17.040 --> 00:06:19.130] And here's to a great 2025.
Shane Tenny is the managing partner of Spaugh Dameron Tenny. Along with hosting the Prosperous Doc® podcast, Shane has a true passion for behavioral finance, helping clients and audiences understand how to develop successful strategies based on their unique temperaments. An accomplished and highly engaging speaker, Shane is regularly interviewed for television and podcasts, is actively involved in the Financial Planning Association®, and contributes to industry advisory boards.