Compliance Corner: Rising Risks of Online Financial Scams
By Amy Betts, Chief Compliance Officer
Online scams are becoming increasingly sophisticated, targeting individuals through dating platforms, social media, text messages, email, and even messaging through online games (or phone game apps like Words with Friends). While romance-related schemes remain prevalent, fraudsters also employ tactics tied to investment opportunities, impersonation, and email phishing. These scams often involve building trust or urgency; without any in-person interaction; followed by requests for money, sensitive information, or account access.
Key Red Flags:
– Exclusive use of technology for communication, such as video calls, messaging apps, or emails without any willingness to meet in person. Some fraudsters even use advanced or AI-generated video to appear legitimate.
– Explanations involving travel, overseas work, or military deployment that limit communication.
– Requests for funds via Peer to Peer Payment systems like, Cash App, Zelle or Venmo or funds to be sent via gift cards, wire transfers, cryptocurrency, or other hard-to-trace methods.
– Claims of emergencies, medical issues, or “overpayments” requiring reimbursement.
– Pressure to move the conversation off the original platform or maintain secrecy.
– Unsolicited investment advice or offers promising guaranteed returns.
– Emails or messages impersonating trusted institutions or colleagues requesting urgent action.
Recommended Precautions:
– Do not send money, gift cards, crypto, or peer-to-peer payments to someone you’ve never met and cannot independently verify.
– Do not send back funds in an overpayment situation — report it immediately to your bank or advisor.
– Limit the personal and financial information you share with online contacts, especially when you have not met in person.
– Verify identities through independent, trusted sources, not through information supplied by the individual.
– Consult a trusted friend, family member, or your advisor if something feels off or you feel pressured.
– Monitor accounts regularly and report any suspicious activity immediately.
Our Commitment to You
We continuously monitor regulatory alerts and evolving fraud trends to help protect your financial life. If you receive an unusual request, encounter a questionable payment situation, please reach out. We are here to help safeguard your assets and provide guidance whenever something doesn’t feel right.
