By The Galecki Financial Management Team
October is Cyber Security Awareness month—which is absolutely made up, but it does give us a nice reason to address this topic.
Online security is very important to our firm. As Fee-Only advisors, we commit to always prioritizing our clients’ interests, and we acknowledge we are custodians of a goldmine of information: Social Security numbers, investment account details, family information, and private correspondence. There are a number of safety measures and checks and balances we have in place at our firm to protect sensitive information and access to assets, but we obviously won’t be going through those in depth in this article. Instead, we wanted to use this article to help educate our clients on the rise of different types of threats and ways you can protect yourself online.
One item we do feel comfortable sharing is that every member of our firm completes mandatory, ongoing training to cover the latest phishing techniques, and we conduct simulated phishing exercises to test staff readiness.
The Evolving Threat Landscape
Cybercrime is a rapidly expanding global industry, and its tools are becoming sharper. The threats financial advisors and their clients face are no longer limited to simple viruses; they are cunning, personalized, and constantly evolving.
The Rise of Social Engineering
The most significant vulnerability remains the human element. Cybercriminals excel at social engineering, which involves psychologically manipulating individuals into divulging confidential information.
- Phishing and spear phishing: While bulk phishing attempts are common, clients of wealth management firms are increasingly targeted by spear phishing. These emails are very personalized, often impersonating a trusted advisor, a custodian, or even a family member. They might refer to a recent transaction or a life event, creating a sense of urgency or legitimacy to trick the client into clicking a malicious link or authorizing a fraudulent wire transfer.
- Deepfakes and AI-powered scams: The emergence of artificial intelligence (AI) has given rise to sophisticated deepfake audio and video. A client could receive a call that perfectly mimics a loved one’s voice, requesting immediate, uncharacteristic fund transfers. This level of impersonation makes verification incredibly difficult and dangerous.
- One way to protect yourself against this type of attack is the “pause and verify” mindset: Treat every urgent financial request with immediate suspicion. The mantra should be: Pause. Stop the transaction. Verify the request through a secondary, pre-approved method (like a call to your loved one, your advisor’s main office line, etc.).
Types of Scams
Scams have been around for generations, but with our increasingly online world, they are becoming harder and harder to spot. We wanted to briefly review a few of the most common types of scams around today.
1. Romance
According to a recent report, as many as 10% of online dating profiles are not real. Scammers can spend months establishing a “relationship” via text, email, and even phone calls. One day the romantic interest needs money sent to them immediately to help with a hardship. Funds are never returned.
2. Sweepstakes/Lottery
Scammers contact individuals to claim a prize, but there is usually a small fee to cover miscellaneous expenses. Scammers use the personal information collected to take more assets from the individual.
3. Government Impersonator
The IRS and the Social Security Administration will never call you unprompted! In fact, it’s usually very hard to get a hold of them! Scammers pretend to be a government worker claiming payment is needed immediately or you’ll face charges.
4. Tech or Fraud Support
This type of scam usually starts with a prompt about a virus. Scammers pretend to be workers at popular tech companies like Apple and Microsoft. These scammers try to pressure individuals to download an app or ask for remote access to a computer. They then ask for immediate payment to fix the issue.
For a full list of the 7 most popular types of scams, please click here to see our Galecki Fraud Prevention Guide.
In all of these cases, it is best to cease contact immediately if you are feeling pressured to send funds right away. Never hesitate to call your Fee-Only advisor if you feel you may be being targeted in a scam.
Ready to Elevate Your Financial Safety?
By proactively addressing cybersecurity, Fee-Only advisors move beyond just managing assets to truly safeguarding their clients’ entire financial lives. They differentiate themselves as comprehensive risk managers in a volatile digital world.
When a client knows their advisor is both growing their wealth while simultaneously acting as a vigilant digital guardian, the bond is strengthened, building a relationship that is future-proofed against the inevitable barrage of cyber threats.
Contact Galecki Financial Management today to gain more insight into our comprehensive Fee-Only wealth management and cybersecurity-aware approach.
To schedule a meeting, call (260) 436-8525 or email [email protected].
About Galecki Financial Management
At Galecki Financial Management, we help individuals and families confidently pursue their financial goals. We’re anything but a business-as-usual wealth management firm. We’re different. Friendly. Casual. And really good listeners. Indeed, that’s a big part of what makes us different. Everything we do is based on what we hear from you, because our experienced team of professionals specializes in comprehensive financial planning, cash flow analysis, IRA rollovers, financial services, money management, estate planning, retirement planning, and advising. We help you identify your short- and long-term goals, and then we work together to pursue them. Lastly, and most importantly, we’re Fee-Only, meaning we’re only compensated for our time. Our only incentive is to help you succeed.