By: Angel Bolton
I hesitated to share this story. After more than 25 years in wealth management – and countless compliance trainings on fraud awareness and prevention – I did not expect to become a victim myself. But I did.
A friend posted a treadmill for sale on social media for $200. I had been wanting to get back into running, and the price was more than reasonable. I messaged her within the app, received payment instructions, and paid. This all happened quickly because the price was too good!
When I followed up and asked about her kids – a topic she normally enjoys – her reply was oddly vague. I texted her directly. Her account had been hacked. The listing was fake. I had sent money to a criminal.
It was only $200. But the lesson was far more valuable: if someone trained to detect fraud can be caught off guard, anyone can.
A New Era of Sophisticated Fraud
Technology has made life more convenient – and given criminals extraordinary tools. Today’s scams are not sloppy emails riddled with typos; they are polished, personalized, and increasingly AIdriven. Criminals use social media to gather personal details and now use generative AI to mimic voices, craft convincing messages, fabricate images, and create deepfake videos with unsettling accuracy.
Their goals remain consistent: bypass logic, exploit emotion, and create urgency.
How Modern Scams Slip Into Daily Life
Understanding how scams unfold helps us recognize red flags sooner. These real-world cases demonstrate how seamlessly advanced scams can become part of daily routines.
When “Normal” Looks Legitimate
A couple selling their second home received what seemed to be a routine email from their title company with updated wiring instructions. The branding looked right, the timing matched their transaction, and nothing appeared suspicious. They wired $480,000 – only to learn criminals had compromised their email weeks earlier and inserted fraudulent instructions at the perfect moment. By the time they discovered the error, the funds were gone.
Modern fraud rarely looks dramatic. It looks routine.
When Impersonation Exploits Trust
Criminals pose as executives, coworkers, vendors, or family members, offering believable reasons why the real person “can’t be reached”. Their goal is simple: sound credible just long enough to pressure someone into acting without verification. These schemes rely on false authority and urgency, which is why all moneymovement instructions should be verified using a known, trusted number – not the one in the message.
Perceived authority alone should never justify bypassing safeguards.
When “Exclusive” Investments Aren’t What They Seem
Affluent investors are frequent targets for “private deals”—preIPO shares, crypto platforms, offshore strategies, or private credit funds. The materials look professional. The referral might even come through someone you trust.
History offers cautionary examples. Bernie Madoff deceived experienced investors and institutions for years. More recently, Sam Bankman-Fried attracted sophisticated venture firms before the collapse of FTX.
Watch for classic signs: consistent returns, pressure to act quickly, vague strategies, internal custody of assets, or resistance to outside review.
Exclusivity can feel flattering. Urgency can feel exciting. Both should prompt caution.
When It Feels Personal
Romance scams often begin with emotion rather than finance. By the time money enters the conversation, trust is already established. Requests for secrecy or movement of funds outside normal advisory channels should end the conversation immediately.
The “family emergency scam” has also surged, powered by public data and AI voice cloning. I recently received a call from a nearby town – where my teenage daughter happened to be that evening. A panicked voice cried, “Mom… come get me…” followed by a man telling me she had been in an accident and asking me to confirm her name and age. That request was the red flag. In a real emergency, they should supply identifying information – not ask for it. I hung up and called my daughter. She was safe.
These schemes work because fear triggers action before logic.
Criminals count on panic to override process.
When Older Adults Are Targeted
Older adults are increasingly targeted with impersonation, investment, romance, and “grandparent” scams, with many cases exceeding six figures. Common tactics include fake IRS, Social Security, or Medicare calls, tech support popups seeking remote access or payment, lotteryfee scams, and utilityshutoff threats demanding immediate payment.
These schemes exploit trust, isolation, and fear.
Why Fraud Works – And How to Protect Yourself
Fraud is less about knowledge and more about timing. It succeeds when people are distracted, stressed, rushed, grieving, or reacting emotionally. Urgency and impersonation shortcircuit rational thinking.
Victims are not foolish – they are human.
The strongest defense against fraud is discipline – simple, repeatable habits that protect you when emotion runs high. Discipline involves recognizing warning signs and adopting core practices.
Recognize the Warning Signs
- Unexpected contact requesting money or sensitive information
- Instructions to send cryptocurrency, buy gift cards, or use payment apps for “secure” transfers
- Pressure to act immediately or keep the request secret
- Appeals to strong emotion – fear, excitement, panic, love
Adopt These Core Practices
- Never share account numbers, passwords, Social Security numbers, or verification codes
- Independently verify wiring instructions using a known phone number
- Be skeptical of “toogoodtobetrue” opportunities and avoid pressure to move quickly
- Don’t click unfamiliar links or scan unknown QR codes – type the URL yourself
- Slow down on purpose; a 10minute pause is often enough to expose a lie
- Loop in your advisor – a second set of eyes restores process and neutralizes urgency
Four Important Questions to Ask Yourself
Before sharing personal information or transferring funds, pause and ask:
- Is this urgent?
- Did it arrive unexpectedly?
- Is there pressure for secrecy?
- Am I being asked to bypass a normal process?
If even one answer is yes – stop. Call a trusted contact. Verify independently. Take a breath.
Fraud depends on speed; slowing down breaks its rhythm.
Final Thoughts
Scams will continue to evolve. AI will make them more convincing, and social media will make them more personal. Yet the criminal’s objective remains the same: create enough urgency, authority, or emotional pressure to override normal caution.
The solution is equally consistent: pause, verify, and follow established processes.
Even experienced professionals can be caught off guard. What protects us is not confidence – it is discipline. And sometimes, it is simply hanging up the phone.
Safeguarding our clients’ assets remains central to our fiduciary responsibility. If something doesn’t feel right – call your advisor first.
DISCLOSURES:
This material is not financial advice or an offer to sell any product and is not a recommendation to buy or sell any particular security. Past performance is not indicative of future results. The opinions expressed are those of the Live Oak Private Wealth Management Investment Team. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass.
Live Oak Private Wealth is a subsidiary of Live Oak Bank. Investment advisory services are offered through LOPW, LLC, an Independent Registered Investment Advisor. Registration does not imply a certain level of skill or training. More information about Live Oak Private Wealth, including our advisory services, fees, and objectives, can be found in our ADV Part 2A and/or Form CRS, which is available upon request.
This should not be construed as tax advice. You should always consult with your tax professional with regard to specific tax questions and obligations.