CyberSmart: Fraud prevention techniques for elder and vulnerable persons
Editorial staff, J.P. Morgan Wealth Management
As many of us work from home, either full time or on a hybrid schedule, our reliance on digital tools has skyrocketed. Cybercriminals have wasted little time taking advantage of this, launching large-scale cyberattacks, phishing scams and other malicious activity against individuals and businesses.
While a number of organizations – including JPMorganChase – work tirelessly to establish safeguards and protect us from these criminals, we have some homework to do as well. We are sharing tips and strategies to improve your digital defenses against cybercriminals and fraudsters.
Fraud can happen to anyone, but elder and vulnerable persons are often prime targets.
Many of them often don’t realize they’re being taken advantage of and are less likely to report the incident. And fraud, specifically financial exploitation, isn’t always committed by a stranger – friends, caretakers and even family members are usually the perpetrators of exploitation of elder and vulnerable persons.
But there are steps you can take to ensure you or your loved ones are more protected. Below are ways this type of fraud can occur and best practices for reducing the chances of its success:
Fraud by a known individual
Fraud by someone you know is the misuse, misappropriation or theft of your funds by a family member, caregiver or familiar professional. Theft is typically committed incrementally over an extended period of time.
Steps to consider:
- Add a trusted contact person to your investment accounts (this is like an emergency contact).
- Consider whether adding a power of attorney is a prudent step to take.
- Designate different individuals as your trusted contact person (TCP) and power of attorney (POA) for greater protection in case one turns out to be a bad actor.
- Discuss roles and responsibilities.
- Introduce trusted contact persons or other reliable people to your financial advisor and set parameters for their involvement.
Fraud by an unknown individual
Financial exploitation by an unknown person is often committed through social engineering scams via email, phone and social networking sites – which frequently trick you into sending funds to the fraudster’s account.
Steps to consider:
- Be aware of social engineering scams, particularly when it sounds too good to be true or you're asked to provide usernames, passwords or security codes.
- Do not assume a phone call is genuine just because a caller has your information – call the organization back on a confirmed number or the one listed on its website. Legitimate callers don’t ask for things like account numbers or passwords.
- Initiate contact through numbers on statements or cards or speaking to advisor and bankers in person when possible.
- Do not allow anyone to access your computer or mobile device remotely.
General prevention best practices:
- Always remain vigilant for suspicious activity on all of your accounts.
- Monitor transactions on a regular basis.
- Consider signing up for paperless billing and statements to prevent stolen information from the mail or someone without permission.
- Enable online alerts to notify you of potential fraudulent transactions and account changes, such as changes to your contact information.
- Keep financial documents and records in a secure place, and shred those you no longer need.
Common social engineering scams
We’ve highlighted some common deception techniques to be aware of that fraudsters use to play on your emotions like fear, greed or loneliness.
TECHNOLOGY SUPPORT
INVESTMENT or PIG BUTCHERING
GRANDPARENT SCAMS
TAX
ROMANCE
LOTTERY AND INHERITANCE
Editorial staff, J.P. Morgan Wealth Management
