If you clicked on and are reading this edition of TGIF 2 Minutes, give yourself credit for being smart! Awareness of the following is of paramount importance.
Fraudsters are targeting high-net-worth people and non-profit organization accounts.
A “fraud trend” (yes, there is such a thing) currently taking place is with bad actors using social engineering tactics to collect personal information and then using that information to open new credit card, investment, and bank accounts in a person or organization’s name. The fraudster then attempts to use these new, false accounts to take over high net worth people’s existing accounts and withdraw those accounts’ funds.
A couple of specifics of what is happening:
- A fraudster submits an account application containing key personal details about an existing account holder combined with a new phone number, email, and mailing address or other contact information.
- Once the new account is opened, the client’s contact details are updated based on the fraudulent contact information received with the new account.
Here are ways to take action:
- Set up alerts, verbal passwords (if available), and two-step verification and closely monitor notifications that reflect transactions or recent changes to account profiles including phone numbers, addresses, and emails.
- Consider setting up credit monitoring and utilizing credit freezes or blocks as an additional layer of protection. (Please ask me for more information.)
- If a notification is received regarding changes to contact information or transactions not initiated by you, report them immediately to the financial institution or credit card company.
- Be mindful of information shared on social media (birthdays, years of graduation) and other websites.
- Be hyper-aware during real estate closings and tax filing time that anything sent or signed online is done in an encrypted system or portal.
- Do not text or email photos of personal documents such as a driver’s license or death certificate. Use encrypted email only!
In addition, charitable organizations are specifically being targeted because they often share their (not donors’ but the organization’s) account information on their websites in order to collect donations. If running a charitable organization, do not share account numbers of the organization on websites.
Being aware of how fraudsters operate is everyone’s best defense. The fight against cybercrime is an unwanted responsibility of anyone with a bank account, investment account or credit card. These steps cannot entirely prevent but can help protect accounts and assets.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.