Our friends at Charles Schwab recently let us know about a new scam that’s been circulating.  Some investors have received calls or emails from fraudsters pretending to be employees of Charles Schwab or other reputable companies.  Please take a moment to prepare yourself just in case you’re contacted in the future. 

Here’s how the scams work

1. Scammers make contact and suggest there’s an urgent “refund” or “suspicious trade” and they need remote access to your account. 
2. The impersonators will often work in teams and “transfer you” to the “Fraud Department” in order to appear more legitimate. 
3. Then, they ask you to verify your personal information for security purposes but are actually collecting your sensitive data. 

How to protect yourself

• Be skeptical.  Confirm whether the company in question is actually trying to contact you.  Remember you can always hang up and call back.  Use the customer service phone numbers listed on your account statements or legitimate corporate websites.
• Never give sensitive information like your credit card details or your Social Security number over the phone unless you’re certain you know who you’re speaking with.
• Don’t automatically trust your caller ID.  Scammers now have the technology to make their phone number appear just like a genuine business number. 

If you are contacted by one of these scammers, be sure to Report the incident to the Federal Trade Commission.  For more information check out our How to Protect Yourself from Scams guide.  It has helpful explanations of common scams to look out for.
 

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

1. The Wall Street Journal, March 31, 2023
2. The Wall Street Journal, March 31, 2023
3. The Wall Street Journal, March 31, 2023
4. CNBC, March 31, 2023

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