Everything you need to know about financial scams and safeguarding yourself from fraud. (Because the bad guys are getting smarter!)
We frequently discuss various strategies to shield ourselves from financial risks. While insurance helps us against unexpected health issues and accidents, and we build diversified portfolios to grow our wealth without jeopardizing our savings, there's another risk we often underestimate — financial scams.
You might think you're too clever to fall for these schemes, but they've become more advanced and widespread. In 2022 alone, losses from financial fraud in the U.S. reached an astounding $8 billion, according to the Federal Trade Commission. This marks an increase of over $6 billion since 2019. Notably, $1.2 billion of these losses stemmed from social media scams, highlighting the importance of caution when connecting with unfamiliar individuals online.
This week, we welcomed tech expert Kim Komando, host of The Kim Komando Show, which broadcasts on more than 500 stations to 6.5 million listeners. Kim also presents The Kim Komando Television Show on Bloomberg Television and the Daily Tech Update podcast. Her website Komando.com serves millions of readers by providing insights on technology and tips to enhance online safety.
Kim elaborates on common scams that deceive many and explains how advancements in artificial intelligence allow scammers to impersonate identities, including voices. However, there are clear indicators that a text, email, or phone call may be fraudulent — Kim highlights these red flags.
We also explored romance scams, which disproportionately affect women. Research from TSB Bank indicates that as many as 66% of romance scam victims are female. Kim discusses the alarming trend of accomplished women losing significant amounts of money under the guise of love. (Hint: If a charming Australian firefighter you've never met asks for your bank account details, consider it a massive warning sign.)
As always, we emphasize solutions — from enhancing the security of our bank accounts and credit cards to tightening our social media privacy settings and removing personal data from search sites targeted by scammers. Tune in and stay vigilant.
Additionally, during the Mailbag segment, Kim answers a listener's tech query about sharing financial documents securely with family. We also hear from a father interested in refinancing his children's student loans, and another listener who is curious about the tax differences between index funds and ETFs. In our weekly money tip, discover how to begin teaching your kids about financial literacy.
