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Protecting Your Finances and Avoiding Scams

May 25, 2023

Educate Yourself on a New Scam Affecting Schwab Users (and General Cybersecurity Tips)


With the ever-expanding integration of technology into our daily lives comes great responsibility. Unfortunately, many people and organizations take advantage of the access that technology can give to individuals and use it to run scams. And as technology advances, so do scammers. Scammers can target your personal information, money, and other private details and assets you want to keep safe. Here at Clayton Financial Group, we value our client's safety and security above all else – let's discuss ways you can keep yourself protected from scams, including a new scam campaign that specifically targets Schwab clients.


Scam Campaigns

Scam campaigns are sophisticated, targeted efforts to steal information, money, or data from individuals over various mediums. While some may be more familiar with scams from overseas, plenty of scam campaigns originate in the United States and directly target Americans. 


Recent scams have become complex, using multiple avenues to execute the fraud: phone calls, text messages, emails, and even paper letters. A new scam campaign currently targets Schwab clients and uses letters, phone calls, and references to LinkedIn profiles.


How They Work

Here is how this current scam against Scwab customers works – while each scam is unique in execution, some of these steps are similar to other scams. 


  1. Scammers target clients by sending a pop-up message that appears to be from Microsoft or Apple, alerting them that their computers have been compromised. 
  2. The pop-up includes instructions to call a provided "tech support" number, which connects them to a fraudster.
  3. Upon contacting the fraudsters, the clients receive a call from someone posing as a Schwab "security officer," claiming that their Schwab account is compromised. 
  4. The imposter instructs the victim to transfer their money into an account under "federal custody" to "protect their funds." They assure the client that they will return the money within three business days once they encrypt their account for safety.
  5. Trusting the instructions, the client follows through, only to find that their money vanishes.
  6. To make the scheme more believable, the scammers send personalized paper letters to the clients, supposedly from the Federal Reserve. These letters reference names and titles of actual Schwab personnel, tech company employees, and FDIC analysts, who are seemingly the individuals contacting them by phone. 
  7. The letter encourages clients to verify the identity of each person through their LinkedIn profiles, adding an extra layer of credibility to the scam.


How to Protect Yourself

The best way to protect yourself against fraud is to stay informed and think critically. In the Schwab scam (and many others), the thieves rely on the fact that you will act immediately on their instructions. They create a false sense of urgency – but in general, just about any honest business or government organization will give you time to make a payment or a decision, not pressure you to act immediately. 


You should also always verify the phone numbers with the name of the person/organization you are speaking with because scammers can change their caller ID name. Regarding the Schwab scam, never grant anyone remote access to your account, and do not click on any links from a pop-up.


What to Do If You Get Involved

If you are the victim of a scam campaign, you should take action as soon as you realize it. Unfortunately, if there is money involved, it will likely be long gone before you can notify someone. That said, it's still worthwhile to take action. If the scammer used your bank account, contact your bank to let them know and ask to reverse the transaction. If the scammer has remote access to any of your devices, update your security software, change your passwords, and report the scam. Remember: these fraudsters are intelligent and sophisticated. Do not feel ashamed or embarrassed if you get involved; focus on what you can do now.


More Best Practices to Avoid Scams

Every scam is different, so taking a multi-faceted approach to avoid scams is crucial. Never answer calls from phone numbers you don't recognize, and block numbers that continually call and leave junk voicemails. Additionally, you should register your phone number on the Federal Trade Commission's National Do Not Call Registry and ensure the antivirus protection software on your computer is up to date. 


Remember that scammers often ask you to pay via a wire transfer service or cryptocurrency – be wary of any requests like this. In the end, before you act on anything, tell a family member or someone you trust about the incident, as telling someone else what happened can help bring clarity. 


Work With Clayton Financial Group

At Clayton Financial Group, we help our clients achieve their plans for life and take their growth and security seriously. We are an independent boutique advisory firm with national coverage and decades of industry experience. If you're looking for help with investment planning, tax planning, risk management, estate planning, and more, look no further: let's connect today.

11 Financial Tips to Make Caregiving Easier

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