Tips to Help You Spot, and Avoid, Financial Fraud
By Saghir A. Aslam
Rawalpindi, Pakistan

(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfil their religious and moral obligations towards charitable activities)

When several St Louis residents received phone calls about missing jury duty, the caller threatened jail time if they didn’t pay a fine by providing their credit card numbers over the phone. The incidents turned out to be financial fraud, criminal attempts to steal and deceive, using phone calls, robocalls, or text messages to lure potential victims.

Angela Aigrette-Bell, a Compliance Consultant at Wells Fargo Advisors, and Lauree Peterson-Sakai, a Wells Fargo Elder Strategy Leader at Wells Fargo Advisors, say those jury-duty-fine incidents serve as a reminder to be increasingly watchful for the many forms of financial fraud.

Here, they offer tips to help you spot (and avoid) financial fraud, and also recommendations for what to do if you think you’re being targeted.

Three actions to help protect yourself against financial fraud:

• 1. Limit the personal information you post on social media. “Criminals can make up convincing stories with the details they get from your posts…including the names of your friends and family, where you work, and when you’re on vacation,” Peterson-Sakai says. Using that information, for example, they can concoct requests for money from supposedly jailed or hospitalized relatives.
• 2. Be vigilant about imposters. If you get an unexpected email purporting to be from a business you would ordinarily trust, it could be a phishing scam. The fraudster is attempting to use fake emails or texts to retrieve your valuable information. Email-based financial fraud often includes familiar company names or strangers pretending to be someone you know, according to the Federal Trade Commission (FTC).
• Criminals can also spoof phone numbers, meaning they can conceal the actual number they’re calling you from. Don’t rely on caller ID to verify that you’re speaking with someone from a legitimate organization. When in doubt, hang up and call the phone number on your account statement or on the company’s or government agency’s website to verify the authenticity of the request.
• 3. Stay educated. “Financial fraud schemes are morphing all the time,” Peterson-Sakai says. Pay attention to the latest warnings and information about financial fraud to help avoid falling prey. The FTC emails free scam alerts, which you can sign up for at ftc.gov/scams. You can also find information on current fraud from credible sources such as the Better Business Bureau or AARP.

Remember that older family members may need help with this, as well. A 2018 Wells Fargo Elder Needs Survey found that 98% of seniors and their kids agreed that older adults are more susceptible to financial fraud. Wells Fargo Advisors has a dedicated guide of recommendations to help keep older loved ones safe.

What to do if you think you’re a target

• Seek advice. Talk with someone you trust if you suspect something’s awry. “If you get a suspicious call saying your grandchild is in jail, for example, call his or her parents before offering any information,” Aigrette-Bell says. A CPA, attorney, or financial advisor can also serve as a good resource. If you can’t think of anyone to turn to, call the police nonemergency number in your area.
• Check with state and federal authorities. Your state’s consumer protection officer can offer information on where to report a case of possible financial fraud.
• The FTC also has an online complaint assistant form you can fill out based on the type of financial fraud you believe is being committed. Categories include “rip-offs and imposter scams,” “unwanted telemarketing, text, or spam” and “credit and debt.”
• Consider putting a credit freeze on your report. One proactive measure you can take against identity theft is to place a credit freeze on your report. This freeze will restrict access to your credit report, which can make it harder for thieves to open new accounts in your name. It’s free to enact a freeze, and you can unfreeze the report for a short window when you are applying for a loan, making a large purchase, or taking another credit-related action.

(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)

This article has been written in collaboration with Walt Homerding of Wells Fargo.