Stay vigilant, protect your assets, and avoid scammers
Financial scams are on the rise and collectively cost investors billions of dollars every year. You can avoid being exploited by knowing what to look for and being alert.
Who's at risk?
Anyone. But adults in—or nearing retirement—are often targeted because of their accumulated wealth. Scams can happen on the internet or by phone, mail, email, or text. They can also occur in person, at home or even at work.
Spotting common scams
One common threat is the sweepstakes/charity/lottery scam. Here's an example of how it can work:
A scammer informs their target that they have won a lottery or sweepstakes of some kind. The scammer then informs the target that they need to make some sort of payment to unlock the supposed prize.
The scammer sends a check to the target to be deposited in their bank account. However, the scammer knows that while the money will show up in the target's account immediately, it'll take a few days before the fake check is rejected.
During that time, the scammer receives money from the target for the supposed fees or taxes on the prize, which they immediately pocket. Shortly after, the "prize money" is removed from the victim’s account as soon as the check bounces.
For the most up-to-date scam alerts, visit the Federal Trade Commission website.
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