How to Protect Your Loved Ones From Scams

Protecting loved ones from financial scams is an important responsibility. One of my kids recently fell for a scam product purchase on Tik Tok. Thankfully, the item she tried to purchase was not expensive and we were able to dispute the charge. This made me think about all of the vulnerable people out there that may need extra help figuring out if something is legitimate or if a scam artist is trying to take advantage of them. Sometimes our loved ones need additional help protecting themselves against scams. Here are some steps you can take to help keep them safe:

 1.       Educate and raise awareness: Talk with your loved ones about common types of financial scams, such as phishing emails, phone scams, romance scams, and investment fraud. Explain how these scams work and the red flags to watch out for. Encourage them to be skeptical and cautious when sharing personal or financial information. Share an article with them about scams or fraud and ask them, “What would you do if this happened?”

 2.       Maintain open communication: Encourage open and regular communication with your loved ones about their financial matters. Create an environment where they feel comfortable discussing financial decisions, concerns, or any suspicious activities they may have encountered. Talk about how they should never give their account number or other information to anyone who calls or emails them.  Some recent scams have been reported as using artificial intelligence to mimic voices.   Nothing is so urgent that you cannot take a message and check with trusted family members or advisors before making a decision.   

3.       Strengthen privacy settings: Help your loved ones secure their online presence by enabling privacy settings on social media platforms and other online accounts. Limit the personal information visible to the public, as scammers often gather details from public profiles to target individuals. Talk about social media scams, especially “Catfishing” where someone expresses romantic interest before they’ve ever met and seem too good to be true. 

 4.       Warn about suspicious requests: Advise your loved ones to be wary of unsolicited requests for personal or financial information, even if the communication appears to be from a trusted source. Emphasize that legitimate organizations would never ask for sensitive information through email, text messages, or phone calls. Write a refusal script for your loved ones with phrases they can say like “No thanks,” “Don’t call again” or even “I don’t accept offers over the phone” if a stranger is trying to engage them. 

5.       Encourage strong passwords and two-factor authentication: Remind your loved ones to use strong, unique passwords for their online accounts. Encourage them to enable two-factor authentication whenever possible to add an extra layer of security. If they write down their passwords, remind them to keep them in a secure spot especially if they have visitors or workers that regularly come into their home.  

6.       Teach safe online behavior: Help your loved ones understand the importance of safe online practices, such as avoiding clicking on suspicious links or downloading files from unknown sources. Encourage them to verify the authenticity of websites before entering any personal or financial information. Beware of ordering from unknown companies. Don’t share too much private information with strangers such as vacation dates. 

7.       Stay updated on scams: Keep yourself informed about the latest scams and fraud techniques. Follow trusted sources such as government agencies, consumer protection organizations, or reputable news outlets. Share relevant information with your loved ones to keep them informed and prepared.  

8.       Monitor financial accounts: Encourage your loved ones to regularly review their bank statements, credit card transactions, and other financial accounts. Prompt them to report any unauthorized or suspicious activity immediately. Talk with your loved ones about never sending money to anyone to claim a prize like a sweepstakes or a trip that they’ve won or to help someone who has been hospitalized or stuck in a foreign country.  The IRS or Social Security Administration will send letters in the mail, they will not call you.  If a letter is received that causes concern or states that you owe money, it’s a good idea to have a trusted financial advisor review it with them to help understand what needs to be done.

9.       Seek professional advice: If your loved ones are considering major financial decisions or investments, encourage them to consult with a trusted financial advisor or professional. Scammers often target vulnerable individuals with lucrative investment opportunities, so professional advice can help them make informed choices. Even if it’s not a scam, many major financial decisions are not urgent and are best discussed with someone you trust before jumping in.

 10.   Supportive role: Be supportive and non-judgmental if your loved ones become victims of a scam. Offer assistance in reporting the incident to the appropriate authorities and help them take the necessary steps to mitigate any potential damage. 

If you or your loved one has experienced a scam, one thing you can do is report it at this link:  https://www.usa.gov/where-report-scams/what-type-scam-do-you-need-report#block-usagov-content  Remember, prevention and education are key. By staying vigilant, informed, and having open conversations, you can significantly reduce the risk of your loved ones falling victim to financial scams.