Is Your Wealth at Risk? How You Can Protect Your Assets from Fraud

“Mo money, mo problems” was a popular song by The Notorious B.I.G. back in the late 1990s. Funny how the lyrics—“It’s like the more money we come across, the more problems we see”—ring very true in today’s economic climate.

The COVID-19 pandemic has opened the door for a variety of fraudulent schemes, from email scammers to robocallers. Back in March we discussed how email scams were on the rise and how criminals were using the pandemic to prey on individuals’ fears and steal personal information.

However, even before the pandemic, cases of identity theft were rising exponentially. In fact, one in 10 people have been the victim of fraudulent activity, whether it was credit card fraud, identity theft, lottery scams, mobile phone fraud, or tax fraud.[1]

According to Symantec, internet attacks have been some of the biggest threats to individuals’ personal security, as they have steadily increased every year. The cybersecurity company’s Internet Security Threat Report for 2019 showed that web attacks were up 56%, one in 10 URLs were malicious, 48% of email attachments were fraudulent and mobile ransomware rose 33%.

With statistics like that, it’s hard not to feel like you’re constantly under attack.

Interestingly, the internet isn’t the only place where your personal information is at risk. If you receive bank statements, credit card applications, wealth management updates and health insurance invoices delivered through “snail mail” to your home, your personal information can be stolen directly from your mailbox. Criminals actually target affluent neighborhoods for this very reason.

A recent study by the Department of Justice and Experian even revealed that individuals with a net worth of more than $1 million were more than 40% more likely to be the victim of identity theft.

Considering this, it’s vital that you take steps to protect your personal information and, subsequently, your wealth from fraudulent activity. Here are a few tactics you can start using today…

Regular Credit Checks: There are three major credit bureaus, Experian, Equifax and TransUnion, and all three offer free yearly credit checks. Many financial institutions also provide monthly credit score updates. Utilize these tools to closely monitor your current accounts for fraudulent activities, or to determine if any accounts have been created in your name.

We advocate putting a security freeze on your credit reports with all three credit bureaus. Doing so can greatly reduce the chances that someone opens an account in your name. It may create some administrative hassles when you refinance your mortgage or open a new line of credit, but we believe it’s worth the effort.

Research Charitable Organizations: The COVID-19 pandemic has ignited a slew of charities asking for donations to support healthcare workers, research for a vaccine and much more. But, before you provide your credit card or bank information to make a donation, thoroughly vet the organization asking for money. And don’t provide your financial information over the phone or via email.

Limit Access to Public Wi-Fi Networks: Free Wi-Fi hotspots in restaurants, cafes, airports and hotels are a hot bed for criminal activity. Security on these networks can be lackadaisical or non-existent, which enables criminals to “eavesdrop” on your activity, install malware on your mobile device or steal your login credentials. Consider setting up a VPN to protect your devices that you tend to use in public.[2]

Open a Post Office Box: If you live in a wealthy neighborhood and are concerned that someone could steal your personal information from your mailbox, you could register for a P.O. Box at your local post office. Then you can have all your important financial documents delivered there.

Educate Your Family Members: Children and teenagers are particularly susceptible to online scams, simply given that they’re on social media a lot and are more trusting. About 20% of all Facebook (FB) accounts are registered to individuals under the age of 17. Make sure your children understand the risks of sharing personal information over the internet and monitor their activity on a regular basis.[3]

Overall, the threat to your personal wealth and security is very real. But you can take steps to protect your family, yourself and your assets from fraudulent activity.

Please reach out to me today if you’d like to further discuss your personal situation or have questions.

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[1] https://www.cnbc.com/2020/02/27/these-are-the-latest-ways-identity-thieves-are-targeting-you.html

[2] https://us.norton.com/internetsecurity-privacy-risks-of-public-wi-fi.html

[3] http://www.torchstoneglobal.com/wp-content/uploads/2016/03/Cyber-Security-Concerns-and-the-HNW-Family-Office.pdf