Protecting Yourself from the Latest Cyber Scams

Technology is ever-changing, and so are cybercriminals’ strategies.

What can you do to help prevent yourself from falling victim to new and trending scams? Read on to stay up-to-date on the latest cyber threats and ways to avoid them. 

1. Vishing and Voice Clone scams

Vishing, known as “voice phishing,” is a tactic where scammers leverage automated, computer-generated voice messages to call people and build trust in an attempt to obtain personal information. 

Vishing attacks are becoming more sophisticated as emerging artificial intelligence (AI) tools allow scammers to create audio content that can clone the voices of friends and family members.
 
If an alleged friend or family member calls frantically asking for money, hang up and call the person directly. You could also create a “safe word” that only you and your close family know. Should you ever receive a desperate call, you can quickly verify the validity with the safe word.

2. Phone scams: Smishing, SIM Swapping and OTP Bots, Contest or Crypto scams

We rely on our smartphones for almost everything. Unfortunately, there are more than a few ways scammers can reach unsuspecting victims through their smartphones. 
 
Cybercriminals are always looking for new ways to go “phishing” for your personal information. When tried and true methods grow tired and easy to spot, they’ll often shift their approach. Their latest tactics? Text message and social media scams.
 
Smishing: Smishing, or SMS phishing, is when a scammer sends a text pretending to be from a legitimate company (i.e. USPS, FedEX, etc.) in order to get sensitive information like your credit card or social security number. The text also often has a link asking you to confirm information. If there are typos in the message or if you’re suspicious, never click on the link. 
 
Fast Fact: Smishing is on the rise, costing victims a significant amount of money. In 2021, consumers lost an estimated $131 million because of SMS phishing attacks.
 
You may be aware of the security risks involved with phishing scams and clicking unknown URLs in emails, but the dangers are less well known when it comes to texts. Don’t be inclined to trust a text message any more than you do an email. Unfortunately, it’s just the latest trick.
 
You also need to watch out for job hoaxes, deposit scams and tax fraud.

SIM swapping: Another way hackers can use your phone is by “SIM swapping”. It's actually similar to the process of getting a new phone and SIM card from your provider. From there, the scammer can get access to multiple accounts by inputting a verification code or starting an account password reset.
 
Reach out to your mobile phone provider and ask about additional security measures to protect yourself from SIM swapping. 

One Time Password (OTP) bots: Another tactic scammers use is OTP bots, which trick people into sharing authentication codes received by text or email. You might receive a robocall or text from someone posing as a legit company like your bank. 
 
Remember, no legitimate company will contact you to ask for your username, password or full card number over the phone.

3. Student Loan Payment scams

Scammers can take advantage of those who owe student loans by posing as federal loan servicers or seemingly legitimate businesses. They call and email to offer solutions such as loan consolidation or lower monthly payments. 

As part of the application form to qualify for these services, they might ask for sensitive information like your Social Security number or banking information.
 
If you receive an unexpected phone call or email from someone who says they're with your loan servicer, hang up and contact your servicer instead. 
 
With federal student loan payments resuming in October, student loan payment scams are on the rise. Therefore, I will have a more detailed write-up on student loan payment scams coming in September.

4. Social Media scams

Popular movies and streaming services often depict shocking social media schemes where cybercriminals scam millions from unsuspecting victims. These scams may seem obvious when viewing them on screen — giving you a feeling of immunity against these attacks. But, social media scams can be subtle and difficult to detect, despite becoming increasingly common.
 
Be extremely wary when people you're connected to on social networks ask for money through instant message (IM) or email. Fraudsters have been known to hack social networks and assume the identity of real users, then send messages to their contacts stating the person has been robbed or is stranded somewhere and needs you to wire money in order to get home.
 
If you receive one of these requests, contact the person by phone and verify the request is real.

5. Investment, Contest or Crypto scams

Illegitimate contests, prizes and early investment opportunities are often at the center of crypto scams. They often target people who have already fallen for a crypto scam, so don’t let yourself be a repeat victim. They may offer you a refund if you pay an upfront fee or for access to your crypto wallet. 
 
If you hear about an investment opportunity that sounds too good to be true, it’s wise to think twice.

6. Digital Payment App scams

Third-party payment apps are convenient but beware of scammers when using them. While you can usually contest an illegitimate payment with your bank, it’s much more difficult to get a refund from a payment app.
 
Some common scenarios include accidentally overpaying, fake fraud alerts as well as phishing emails or texts. If you get a message that looks like it’s from a payment app, verify it by logging into your account through the app or website.
 
While it may be convenient, you should think twice before using payment apps while you’re connected to public Wi-Fi. These networks often have low security and may leave your personal information vulnerable to hackers and scammers. When you’re on the go, turn off both automatic Wi-Fi and Bluetooth connectivity on your phone to avoid automatically connecting to public Wi-Fi. 

7. Online Marketplace scams

Watch out for similar scams when selling or buying items through sites like Craigslist, Facebook Marketplace or eBay.
 
When you’re the seller, you might receive a fake payment receipt. Scammers may also overpay for an item you’re selling and then ask for a refund on that amount. When you send it, you may realize you never received their initial payment. Never ship the item until you have confirmation from your bank that payment has been received.
 
As a buyer, beware of bootlegs or broken items. If a deal seems too good to be true, it usually is. 

8. Work-from-Home scams

These typically start as an ad saying you can make big money working from home. Or maybe after posting your resume on a job search website, you’re contacted by an employer, who wants your driver’s license and bank account numbers before they even interview you.

What happens next? When you inquire about the job, the potential employer might ask for your sensitive personal information and subsequently swipe your identity and/or money.

9. Romance scams

In a romance scam, an unsuspecting person is tricked into believing they’re in a relationship with someone they met online — but in reality, it’s a con artist who often claims, conveniently, they can’t meet up IRL (in real life).
 
They’ll ask you to wire money for things like plane tickets, surgery or gambling debts. Their hope is that they can rely on the personal relationship they’ve built with you, though fraudulent, to guilt you into helping them in their time of need. 
 
If you’ve never met someone in real life, you should always view requests for payment and loans as potential red flags.

10. Suspicious "spoofing" Websites

Criminals create fake websites that look like real company websites in order to steal your personal information. Be cautious of links sent to you in emails. Phishing emails and smishing texts include links to these fake sites.
 
The best way to know that you are going to the real website is to type the URL directly in your browser or use favorites/bookmarks to access the website.
 
As a rule of thumb, look at the website address to be sure it starts with "https:" before entering personal information on a site. A green security status bar and padlock icon next to the web address are additional visual indicators that confirm you are on a secure site.
 
For additional protection, activate the additional web protection features of your anti-malware software such as Norton Cybersecurity.

Stay Active, Stay Safe

In addition to these scams, would-be cybercriminals also have more traditional tricks up their sleeves. Help keep yourself protected by remaining vigilant and remembering that if something sounds too good to be true, it usually is. By playing an active role in your safety and cybersecurity, you can stay ahead of even the craftiest of cybercriminals.
 
Also, don’t hesitate to report a suspected scam: 

• If you suspect fraud, you can file a complaint with the Federal Trade Commission at reportfraud.ftc.gov.
• To report suspected identity fraud, report it to identitytheft.gov and the social security administration at 800-269-0271.
• For Online crime or cyber scams, you can report it to the Internet Crime Complaint Center (IC3) at ic3.gov or the Cybersecurity and Infrastructure Security Agency at cisa.gov/uscert/report. 
• For Phishing scams, report it to the National Cybersecurity Communications and Integration Center (NCCIC) at us-cert.gov/report. 
• For suspicious text messages, copy the message and forward it to 7726, a centralized spam reporting service among all wireless carriers. 

If you suspect fraud or your credentials are stolen or compromised, change your password(s) immediately. Changing your password regularly to a long and complicated password keeps you one step ahead of the cyber scammers.
 
Most of us become victims of cyber scams because of complacency or laziness. We don’t want to bother with a long or complicated password, we skip the privacy settings on social media sites, we fail to activate two-factor authentication, or we don’t double check our monthly statements and transactions.
 
Unfortunately, getting in the habit of doing all these things on a regular basis is the only way to protect ourselves from potentially expensive losses of money, time and sanity.

If you would like to review your current investment portfolio or discuss any other financial planning matters, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fee-only fiduciary financial planning firm that always puts your interests first.  If you are not a client, an initial consultation is complimentary and there is never any pressure or hidden sales pitch. We start with a specific assessment of your personal situation. There is no rush and no cookie-cutter approach. Each client is different, and so are your financial plan and investment objectives.

Sources: FTC.gov, Ally Bank, consumerfinance.gov

Medicare Open Enrollment for 2022 Begins October 15

Medicare beneficiaries can make new choices and pick plans that work best for them during the annual Medicare Open Enrollment Period. Each year, Medicare plan costs and coverage typically change. In addition, your health-care needs may have changed over the past year. The Open Enrollment Period — which begins on October 15 and runs through December 7 — is your opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs.

During this period, you can:

• Switch from Original Medicare to a Medicare Advantage Plan
• Switch from a Medicare Advantage Plan to Original Medicare
• Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
• Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn't offer prescription drug coverage
• Switch from a Medicare Advantage Plan that doesn't offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage
• Join a Medicare prescription drug plan (Part D)
• Switch from one Part D plan to another Part D plan
• Drop your Part D coverage altogether

Any changes made during Open Enrollment are effective as of January 1, 2022.

Review Plan Options

Now is a good time to review your current Medicare benefits to see if they're still right for you. Are you satisfied with the coverage and level of care you're receiving with your current plan? Are your premium costs or out-of-pocket expenses too high? Has your health changed?  Do you anticipate needing medical care or treatment, or new or pricier prescription drugs?

If your current plan doesn't meet your health-care needs or fit your budget, you can switch to a new plan. If you find that you're satisfied with your current Medicare plan and it's still being offered, you don't have to do anything. The coverage you have will continue.

Information on Costs and Benefits

The Centers for Medicare & Medicaid Services (CMS)  has announced  that the average monthly premium for Medicare Advantage plans will be $19,  and the average monthly premium for Part D prescription drug coverage will be $33.  CMS will announce 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs soon.

Where Can You Get More Information?

Determining what coverage you have now and comparing it to other Medicare plans can be confusing and complicated. Pay attention to notices you receive from Medicare and from your plan, and take advantage of available help. You can call 1-800-MEDICARE or visit the Medicare website, medicare.gov, to use the Plan Finder and other tools that can make comparing plans easier.

You can also call your State Health Insurance Assistance Program (SHIP) for free, personalized counseling. Visit shiptacenter.org or call the toll-free Medicare number to find the phone number for your state.

You can find more information on Medicare  benefits in the Medicare & You 2022 Handbook on medicare.gov.

If you would like to review your current investment portfolio or discuss any health insurance concerns, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fee-only fiduciary financial planning firm that always puts your interests first.  If you are not a client yet, an initial consultation is complimentary and there is never any pressure or hidden sales pitch. We start with a specific assessment of your personal situation. There is no rush and no cookie-cutter approach. Each client is different, and so is your financial plan and investment objectives.

Election Confusion Designed to Steal Your Data and Assets

Criminals are using election confusion to attempt to steal your data and assets. Don't become a victim!

As we near the end of the year, we're all reminded once again that fraud attempts tend to spike during the holiday season. But this year's fourth quarter offers additional reasons for concern—not only due to the ongoing global pandemic, but also because of tensions surrounding the U.S. presidential election.

Fraudsters are already doing their best to take advantage of voters' confusion about how, where and when they can cast their ballots in a disorienting and seemingly unpredictable environment. For example, there are already reports of fraudulent websites that are offering inaccurate mail-in voting guidelines, as well as fallacious robocalls purporting to be from presidential candidates.

We anticipate that, as election day approaches, fraudsters will try not only the techniques mentioned above, but also phishing campaigns and other scams designed to steal your personal and account information, infect your devices with malware, and gain access to your email and financial accounts.

Be sure that you are aware of these threats and are ready to defend against them. Here are some tips:

• Always pause and ask additional questions when something doesn't seem right.
• Hang up on strangers who call you asking personal questions
• Never open an e-mail attachment that you're not 100% sure is legitimate or you were not expecting.

As a firm, we are doing everything we can to help prevent fraud, among others by verifying money movement between client internal and external accounts. We will always verbally verify wire transfers before approving them and will do our best to flag unusual activity with the help of our custodian.

Medicare Open Enrollment Begins October 15

What is the Medicare Open Enrollment Period?

The Medicare Open Enrollment Period is the time during which Medicare beneficiaries can make new choices and pick plans that work best for them. Each year, Medicare plan costs and coverage typically change. In addition, your health-care needs may have changed over the past year. The open enrollment period is your opportunity to switch Medicare health and prescription drug plans to better suit your needs.

When does the Medicare Open Enrollment Period start?

The annual Medicare Open Enrollment Period begins on October 15 and runs through December 7. Any changes made during open enrollment are effective as of January 1, 2020.

During the open enrollment period, you can:

• Join a Medicare prescription drug (Part D) plan
• Switch from one Part D plan to another Part D plan
• Drop your Part D coverage altogether
• Switch from Original Medicare to a Medicare Advantage plan
• Switch from a Medicare Advantage plan to Original Medicare
• Change from one Medicare Advantage plan to a different Medicare Advantage plan
• Change from a Medicare Advantage plan that offers prescription drug coverage to a Medicare Advantage plan that doesn't offer prescription drug coverage
• Switch from a Medicare Advantage plan that doesn't offer prescription drug coverage to a Medicare Advantage plan that does offer prescription drug coverage

What should you do?

Now is a good time to review your current Medicare plan. What worked for you last year may not work for you this year.

Have you been satisfied with the coverage and level of care you're receiving with your current plan? Are your premium costs or out-of-pocket expenses too high? Has your health changed?  Do you anticipate needing medical care or treatment, or new or pricier prescription drugs?

If your current plan doesn't meet your health-care needs or fit within your budget, you can switch to a plan that may work better for you.

If you find that you're still satisfied with your current Medicare plan and it's still being offered, you don't have to do anything. The coverage you have will continue.

What's new for 2020?

The end of the Medicare Part D donut hole. The Medicare Part D coverage gap or  "donut hole" will officially close in 2020. If you have a Medicare Part D prescription drug plan, you will now pay no more than 25% of the cost of both covered brand-name and generic prescription drugs after you've met your plan's deductible (if any), until you reach the out-of-pocket spending limit.

New Medicare Advantage features. Beginning in 2020, Medicare Advantage (Part C) plans will have the option of offering nontraditional services such as transportation to a doctor's office, home safety improvements, or nutritionist services. Of course, not all plans will offer these types of services.

Two Medigap  plans discontinued. If you're covered by Original Medicare (Part A and Part B), you may have purchased a private supplemental Medigap policy to cover some of the costs that Original Medicare doesn't cover. In most states, there are 10 standard types of Medigap policies, identified by letters A through D, F, G, and K through N. Starting in 2020, people who are newly eligible for Medicare will not be able to purchase Medigap Plans C and F (these plans cover the Part B deductible which is no longer allowed), but if you already have one of those plans you can keep it.

If you would like to review your current investment portfolio or discuss any medicare or health insurance questions, please don’t hesitate to contact us or visit our website at http://www.ydfs.com. We are a fee-only fiduciary financial planning firm that always puts your interests first.  If you are not a client yet, an initial consultation is complimentary and there is never any pressure or hidden sales pitch. We start with a specific assessment of your personal situation. There is no rush and no cookie-cutter approach. Each client is different, and so is your financial plan and investment objectives.