Old Tricks, New Tech: How to Stay Safe

Every day, we're inundated with spam calls, fraudulent mailers, and deceptive emails. Cybercriminals continually refine their methods to trap unsuspecting victims. Even the most cautious among us can be duped under the right circumstances. It is important to stay informed about emerging scam techniques and to remain cautious when something seems slightly off. 

Contrary to the common belief that scammers only target the elderly or those experiencing cognitive decline, no one is immune. Business owners face even greater risks, as every employee can serve as a potential gateway for scammers seeking to exploit vulnerabilities and access sensitive information.

Traditional Scams

Phone Scams: These scams are diverse, ranging from the "you've won a free cruise" ploy to impersonations of government agencies like the IRS or Social Security Administration. Scammers often use high-pressure tactics, creating a sense of urgency to prevent their targets from thinking clearly. They might threaten legal action, claim accounts are frozen, or offer a "limited-time offer" to pressure victims into divulging personal information like their Social Security number, bank account details, or credit card numbers. Caller ID spoofing makes it even harder to identify the true caller, as scammers can mask their numbers to appear legitimate.

Email Phishing: These deceptive emails often mimic legitimate institutions like banks, online retailers, or even social media platforms. They typically contain links that lead to fake websites designed to steal login credentials or install malware on computers. Phishing emails can be very sophisticated, using realistic logos and language to trick viewers into believing they are genuine. They often create a sense of urgency, warning of account suspension or a security breach to prompt immediate action. Never click on links in suspicious emails; instead, navigate directly to the supposed sender's real website through a known and trusted channel.

Confidence Tricks: These scams play on emotions, often involving fake romantic interests, urgent pleas for help from a "grandchild" in need, or promises of easy riches. The goal is to gain the victim’s trust and then exploit it for financial gain. Romance scams can involve months of online interaction, building a false sense of intimacy before the scammer requests money for a fabricated emergency. Grandparent scams often involve a frantic phone call from someone claiming to be a grandchild in trouble, needing money for bail, medical expenses, or travel. These scams exploit the emotional bond between grandparents and grandchildren, making victims more susceptible to manipulation.

Mail Fraud: While less common in the digital age, mail fraud still exists. It can involve fake sweepstakes offers, chain letters, or requests for donations to bogus charities. These scams often target older adults who may be more trusting of traditional mail communications. Be wary of any unsolicited offers or requests for money through the mail.

Emerging AI-Based Methods: A New Era of Deception

The rise of artificial intelligence (AI) has provided scammers with new and more sophisticated tools, making their schemes even more difficult to detect. These AI-powered scams leverage advanced technology to create highly realistic and personalized deceptions:

Deepfake Audio/Video: AI can now create incredibly realistic fake audio and video recordings, known as deepfakes. Imagine receiving a call from someone who sounds exactly like your grandchild, pleading for money because they've been in an accident. This is the power of deepfakes and it's a frighteningly effective tactic. Deepfakes can also be used to create fake videos of public figures endorsing products or making false statements.

AI-Generated Phishing Emails: AI can generate highly personalized and convincing phishing emails that are much harder to detect than traditional ones. These emails can be tailored to their victim’s specific interests, relationships, and online behavior, making them incredibly persuasive. AI can analyze social media profiles and other online data to craft emails that appear legitimate and relevant to one’s life.

Synthetic Identities: Scammers can use AI to create entirely fabricated identities, complete with fake social media profiles, background information, and even biometric data. These synthetic identities can be used to build trust and then carry out fraudulent activities, such as opening fake accounts, applying for loans, or making fraudulent purchases.

Practical Guidance for Staying Safe

Be Skeptical: Never give out personal information over the phone, via email, or through social media unless you are absolutely certain of the recipient's identity. If something sounds too good to be true, it probably is. Be especially wary of unsolicited offers, high-pressure tactics, and requests for sensitive information.

Verify Independently: If you receive a suspicious call, email, or message, don't rely on the information provided in that communication. Instead, contact the supposed sender directly through a known and trusted channel. For example, if you receive an email claiming to be from your bank, call your bank directly using the number on your bank statement or the back of your debit or credit card.

Protect Your Passwords: Use strong, unique passwords for all your online accounts. Consider using a password manager. Never share your passwords with anyone.

Update Your Software: Keep your computer's operating system, antivirus software, and other applications up to date. Enable automatic updates whenever possible.

Be Careful What You Share Online: Limit the amount of personal information you share on social media. Be mindful of what you post and adjust your privacy settings.

Talk to Your Loved Ones: Discuss these scams with your family and friends, especially older adults. Encourage them to be skeptical of unsolicited communications and to verify any suspicious requests.

Monitor Your Accounts Regularly: Review your bank and credit card statements regularly for any unauthorized transactions. Report any suspicious activity immediately. Consider signing up for account alerts.

Protecting yourself and your business demands constant vigilance. By staying informed and exercising caution, you can significantly reduce your risk. We urge you to share this critical information with your colleagues and loved ones. If you ever encounter something suspicious and are unsure of your next steps, please give us a call—we're here to help.

Eric Wathen, CFA®