Smishing: The New Threat to Your Hard-Earned Wealth

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At Intelligent Investing, protecting our clients’ wealth is more than just about managing portfolios—it’s about safeguarding every aspect of your financial life. In an ever-evolving digital world, scams are becoming more sophisticated and more personal. One of the latest threats is called “smishing,” and we’re here to make sure you’re prepared.

What is Smishing?

Smishing is a form of phishing scam that targets your text messages (SMS). Much like email phishing, cybercriminals use deceptive messages to lure you into clicking malicious links or revealing sensitive information. Recently, we’ve been alerted by our custodian, Charles Schwab, about an active smishing campaign targeting clients.

In these smishing attempts, clients receive fraudulent texts that claim a large disbursement has been made from their Schwab account. The text then prompts them to click on a link to cancel the transaction. The link leads to a fake website that spoofs a financial institution’s domain (i.e. if the scammer wants to scam a client of Charles Schwab—the scammer may want the client to click on a false website (e.g., “schwbba.com” or “schwabd.com”). These messages are designed to create panic, making people act before you think.

Red Flags to Watch For

Here are some common red flags to help you identify smishing attempts:

• Texts from international or suspicious numbers
• Notifications of large ACH transactions you didn’t initiate
• Links to domains that are subtle variations of trusted websites (e.g., “schwbab.com”)
• Urgent requests to reply or click immediately

How Panic Can Lead to Scams

These scams work because they trigger fear and urgency. Not long ago, one of our clients thought they were on the verge of losing a significant sum due to a suspicious call they received. Fortunately, because we have a close fiduciary relationship with our clients, they knew to call us first before acting on the message.

We immediately investigated and confirmed that it was a scam. Out of an abundance of caution, the client changed his login credentials with our custodian, Schwab. This quick action saved the client from potentially clicking on a malicious link or giving away sensitive information. In moments like these, we hope that having a trusted advisor can make all the difference.

How We Protect Our Clients

At Intelligent Investing, we stand between our clients and these types of threats. As a reminder, here’s how we help protect our clients’ wealth:

1. Verification Calls: We personally call to verify distribution requests that are non-recurring before they are processed.
2. Daily Monitoring: We receive daily alerts for any money movement in your accounts, keeping a close eye on all transactions.
3. Security Recommendations: We use and encourage robust security measures such as two-factor authentication and verbal passwords to add an extra layer of protection.

Why a Fiduciary Relationship Matters

Scammers exploit moments of panic and vulnerability. As we age, cognitive decline can make us more susceptible to these scams. This is why it’s crucial to establish a relationship with a fiduciary advisor long before these vulnerabilities set in.

A fiduciary advisor is legally and ethically bound to act in your best interest. We not only manage your investments but also help protect you from the unexpected threats that can jeopardize your wealth. Our proactive approach ensures that you’re not facing these dangers alone.

Final Thoughts

We’ve written a few blog posts about the emotional side of financial scams, and you can read more about How to Emotionally Heal after being Financially Scammed. You also may want to read about 11 Ways to Protect Yourself From Being Financially Scammed.  Better yet, if you or a loved one does not have a trusted relationship with a fiduciary advisor, and you would like to have accountability with a firm like ours, click here to schedule a complimentary call or coffee with us. We’d love to help you and your loved ones become more protected in this scam-filled culture.

Our clients’ financial security is our top priority. By staying informed and maintaining a strong relationship with a fiduciary advisor, you can navigate the increasingly complex digital landscape with confidence. Scammers may be clever, but with Intelligent Investing by your side, you’re never facing them alone.

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

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