Fraud attempts are rising at an alarming rate and with evolving technology, scammers are getting more creative every day. Victimization schemes are driving much of the dramatic growth in scams and fraudulent activity. Read on to learn more about scams involving romance or an inheritance, and learn to spot their warning signs to protect you and your family.
Romance scam
A scammer may target you online through a dating site, and your new friend initially seems trustworthy. After establishing a virtual relationship with you, you may receive a request for funds or gift cards. The fraudster may claim there is an emergency, or that they want to purchase an airline ticket to visit you. Be skeptical of payment requests made from individuals met online, and speak with a trusted friend or family member about the relationship if you begin to suspect a romance scam.
Romance schemes targeting elders
Pandemic loneliness pushed many older Americans online in search of a love connection. The Federal Trade Commission’s latest report to Congress describes a sharp increase in romance scam financial losses among adults age 60 and over — up to $139 million in 2020 from just $84 million the year before. Scammers know how to take advantage of older adults who may feel lonely and isolated. If you’re worried about someone in your family becoming a victim, try to keep an open line of communication. Having a support system in place may decrease the odds of someone becoming a victim.
Tips for spotting an online romance scam:
- Your new online contact lives outside of the United States, or travels often.
- The contact confesses their love immediately but cancels when in-person interactions are planned.
- The contact will ask for monetary assistance with plane tickets or other travel.
Inheritance scam
This type of fraud is typically perpetrated through email and mail. You may receive a letter that promises an inheritance, but the letter states that the supposed inheritance is difficult to access, and that you will need to pay money and provide personal details in order to claim it. This is just the groundwork for a complex scam.
The scammers next step is to instruct you to open an account to receive the inheritance. After the account is opened, the scammer is eager to transfer funds to you in the form of checks or ACH wire payments. However, the checks are likely to be counterfeit, stolen or altered, and ACH or wire payments may be fraudulent. The funds in your new account appear to be real, but they are not actually legitimate.
Once the fraudulent funds are set up in your account, the scammer will demand payment in the form of wire payments or gift cards, and you may feel obligated to pay. This type of scam can be especially damaging, because the cycle can repeat itself until you recognize the deception.
Tips for spotting an inheritance scam
- Be wary of fees. Law firms or executors of wills do not request fees in order to share details of an inheritance.
- Check where your money is going before providing personal identifiers which date of birth, Social Security number and bank account details.
- Discuss with relatives and other trusted advisors before sending any funds.
Take action and prevent fraud
Fraud can happen at any time, and any one of us can be targeted. Protect yourself to avoid becoming a victim. First, review your financial accounts regularly to identify any unauthorized activity. Also, keep your passwords safe. Fraudsters keep up with the pace of technology and leverage sophisticated hacking tools to exploit weaknesses, including your passwords. Practicing good “password hygiene” — the practice of ensuring passwords are unique, difficult to guess, and hard to crack — is one of the most essential security measures to deter online intruders. There are reputable tools out there to help you manage your passwords.
If you become a victim of fraud, here are steps to take:
- Notify your financial institutions immediately.
- Contact credit reporting agencies to request a fraud alert be placed on your file.
- Install reputable antivirus software on your computer and run full virus scans regularly to remove any viruses.
- Change your passwords regularly, including those affiliated with financial institutions and email platforms. Be sure you change your passwords on a clean device which includes a device free of malicious software.
At CIBC, we’re committed to keeping your account secure and protecting you against fraud. To learn more, please visit our Fraud Prevention page. To help safeguard your account, we have the tools and resources.
