Fraud is a serious concern for everyone, including businesses and seasoned investors. 

The fraud landscape is constantly evolving, and staying vigilant against the latest trends is critical to safeguarding your business and your personal finances. 

A major driving force is the proliferation of digital platforms, social media, and mobile apps, which provide fraudsters with new avenues to target victims and perpetrate their schemes. Advanced technology enables fraudsters to create authentic-looking websites, emails, and advertisements that mimic legitimate businesses, making it difficult for individuals to discern between genuine and fraudulent activities.

But there is a lot more happening. Social engineering tactics, such as phishing, pretexting, and impersonation, play a crucial role in the convincing nature of modern fraud schemes. Fraudsters leverage psychological manipulation techniques to exploit human emotions and trust, thereby convincing victims to divulge sensitive information or perform actions that facilitate fraud. By posing as trusted entities, such as banks, government agencies, or reputable organizations, fraudsters manipulate victims into believing their requests are legitimate.

In addition, data breaches and identity theft provide fraudsters with access to vast amounts of personal information. Armed with stolen identities and sensitive data, fraudsters can create convincing personas and impersonate legitimate individuals to perpetrate fraudulent activities. Victims are more likely to trust fraudulent communications or transactions when they believe they are interacting with someone they know or a reputable entity.

There also are phishing attacks, which have evolved beyond simple email scams to encompass more sophisticated techniques that are increasingly difficult to detect. Spear phishing, for example, involves targeting specific individuals or organizations with personalized messages tailored to their interests or roles, making the fraudulent communication appear more convincing. Similarly, smishing (SMS phishing) and vishing (voice phishing) exploit alternative communication channels, such as text messages and phone calls, to deceive victims into divulging sensitive information or performing financial transactions.

Basically, modern fraudsters exhibit a level of professionalism and credibility that enhances the convincing nature of their schemes. Through the use of polished websites, sophisticated marketing materials, and persuasive sales tactics, fraudsters create an aura of legitimacy that instills confidence in their victims. Moreover, some fraudsters go to great lengths to establish fake credentials, testimonials, and reviews to further enhance their credibility and deceive unsuspecting individuals.

However, there are some easy steps to taking care of yourself.

·        Make a habit of regularly viewing your account activity and looking for suspicious transactions. If anything seems out of line, contact your financial institution immediately.

·        Don't share personal information. This is especially important on social media. Fraudsters are adept at combing social media profiles for details that will help them hack into accounts or steal identities. For instance, those fun and seemingly harmless “quizzes” on social media often ask personal questions that could offer clues to your account passwords. If it’s something you wouldn’t share with a complete stranger, don’t post it online.

·        Be cautious of phishing attempts. With fraudsters becoming more sophisticated, sometimes even employing AI to create identifiable voices, phishing attempts are getting harder to recognize. The best thing to do is go with your gut instinct. If something feels “off,” it probably is. 

·        Don't open or accept communications from an unfamiliar source, including phone calls, emails, or texts. Instead, contact the individual or company using the contact information on their official website.

·        Verify payment requests. Requests for payments using gift cards and prepaid debit cards are often associated with scams.

Having your accounts with a trusted wealth management firm is incredibly helpful for safeguarding against financial fraud. Your wealth adviser can inform you of the many layers of security covering your accounts. If you feel you’ve been a target of fraud, one call to your wealth adviser, and a team of professionals will review all your accounts and take the steps necessary to protect you and your finances.

Jennifer Osgood is president of Wagner Wealth Management, which has offices in Greenville, Anderson, and Oconee counties. Wagner Wealth Management specializes in helping individuals and companies reach their personal and professional goals. Learn more at www.wagnerwealthmanagement.com.