Technology has made many aspects of life more convenient, but unfortunately, it has also given fraudsters new tools to target unsuspecting individuals.

Recently, Schwab has reported an increase in impersonation scams, phishing attempts, and other forms of social engineering targeting investors. While most communications from financial institutions are legitimate, scammers are becoming increasingly sophisticated in their efforts to gain access to personal information, financial accounts, and even retirement savings.

 

Understanding how these scams work is one of the best ways to protect yourself.

 

The New Threat: AI Voice-Cloning Scams

One of the fastest-growing fraud tactics involves artificial intelligence.  Using publicly available audio from social media videos, voicemails, podcasts, or other recordings, criminals can create convincing imitations of a person's voice. In some cases, fraudsters have used AI-generated voices to impersonate family members, financial professionals, company representatives, and other trusted contacts.

 

Imagine receiving a call that sounds exactly like someone you know. The caller claims there is an urgent issue with your account or requests immediate action regarding a financial transaction. The voice may sound authentic, but appearances can be deceiving.

 

If you receive an unexpected request involving:
Sensitive personal information

• Account changes
• Movement of funds
• Wire transfers
• Urgent financial decisions

Take three simple steps:

Pause. Hang Up. Verify.

Contact the individual or organization directly using a trusted phone number you already have on file. Even if the voice sounds familiar, do not rely on it alone to confirm someone's identity.

 

Why Scammers Create Urgency

Most successful scams have one thing in common: urgency.

Fraudsters want victims to act before they have time to think, verify, or ask questions. You may be told:

• Your account has been compromised
• A transfer must be completed immediately
• A family member is in trouble
• A security issue requires urgent action
• Failure to act will result in financial consequences

When you encounter pressure to act quickly, consider it a warning sign.

A good rule of thumb is simple:

Stop. Verify. Then Act.

Taking a few minutes to verify a request can prevent significant financial and emotional stress.

 

Email and Text Message Scams Continue to Increase

While phone scams often receive the most attention, phishing emails and fraudulent text messages remain among the most common tactics used by criminals.

Modern phishing attempts can look remarkably legitimate. Logos, branding, email signatures, and even sender names can be copied to mimic trusted organizations.

Before clicking a link or opening an attachment:

• Check the sender's full email address, not just the display name.
• Be cautious of unexpected requests or unfamiliar links.
• Avoid opening attachments or clicking links from unknown sources.
• Be wary of messages that create urgency or fear.
• When in doubt, contact the organization directly using a known phone number or website, not a number on the email.

Remember, a familiar name does not guarantee a message is legitimate. Always verify the actual email address.

 

Never Share Sensitive Information

One of the easiest ways to avoid becoming a victim is knowing what information should never be shared in response to an unsolicited request.

Legitimate financial institutions will not ask you to disclose:

• Passwords or usernames
• Social Security numbers
• Account numbers
• Security questions or answers
• One-time verification codes
• Multi-factor authentication (MFA) codes
• Wire instructions or transfer authorizations

In particular, be cautious if someone asks for a text message code that was recently sent to your phone. These one-time authentication codes are intended only for you and should never be shared.

Protecting Yourself Starts with Verification

The good news is that many scams can be avoided through a simple habit: verification.

Whenever you receive an unexpected call, email, or text requesting personal information or immediate action, take a moment to verify the request through a trusted source.

At our firm, we encourage clients to contact us directly anytime something seems unusual or suspicious. We are always happy to help verify communications and ensure your information remains secure.

 

Final Thoughts

As fraud tactics continue to evolve, awareness remains one of the strongest defenses. By staying cautious, verifying unexpected requests, and protecting sensitive information, you can significantly reduce the risk of becoming a victim.

When in doubt, remember:

Pause. Verify. Then Act.

 

A few moments of caution today can help protect your financial future tomorrow.