Tuesday, December 17, 2024

7 Tips to Stop Fraudsters in Their Tracks

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Editor's Note: We recently became aware of an elaborate scam targeting investors at certain brokerages (namely Schwab). As far as we've heard, it hasn't yet affected any of our readers, but I wanted to bring the situation to your attention so you can better protect yourself.

I'm also sending along some of Chief Income Strategist Marc Lichtenfeld's past insights on how to identify and avoid scams. I hope you'll give them a read below.

- James Ogletree, Managing Editor

7 Tips for Avoiding AI Scams

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

A few years ago, a member of my family got sick. In addition to her physical ailments, her mental clarity took a nose-dive. Not only was I worried about her health, but I was also very concerned she'd be vulnerable to fraud, as there were caregivers in her house.

However, even healthy seniors sometimes fall prey to financial abuse and fraud.

It turns out there is a physiological reason for this.

According to a UCLA study, older people have less activity in the part of the brain that is responsible for what is known as "gut feeling." Oftentimes, it is that gut feeling that tells a person when someone is not trustworthy or something doesn't seem right.

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As we age, these changes in our brains can cause us to become more trusting and focus on positive thoughts and memories. This makes us more likely to help someone out, but it also makes us easier to deceive.

There's another factor that's making it a whole lot tougher to avoid scams: artificial intelligence.

With AI, scammers can use information about you to produce official-sounding emails from what appear to be banks or government agencies.

Software that can replicate voices and videos of loved ones can make a convincing argument that they are in fact in trouble and need cash. It may even capture your voice to fool your bank.

Here are a few ways to avoid scams in the age of AI...

Protect Yourself With These 7 Tips

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