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Protecting Your Money from Sophisticated Criminals

By Tim Proudlock, Head of Division, Operations and Technology, Asia, St James's Place Wealth Management

Growing numbers of sophisticated criminals are aiming to trick you out of your money. Recent high-profile Netflix documentaries such as The Tinder Swindler and Bad Vegan: Fame. Fraud. Fugitives., are prime examples of scams taking place, both online and offline. In addition to individual scams such as the ones that both documentaries cover, there are highly professional organised crime gangs who use sophisticated psychological techniques in their attempts to part us from our money.

According to data drawn from the National Fraud Intelligence Bureau by chargeback firm Payback Ltd., during November 2020 to November 2021, losses due to fraud and cyber-crime in the UK were GBP2.5 billion, with 87% of the total report volume relating to individuals.

These days, warnings of scams and fraudulent activity are ubiquitous, making us aware that there are hundreds of malicious actors waiting to fool us out of our savings and investments; even the savviest are liable to fall for such scams.

These kinds of scams primarily prey on our human emotions and vulnerabilities. According to Jenny Radcliffe, CEO of Human Factor Security and an expert in social engineering, we all have at least one weakness that a determined scammer will seek out and exploit. “The number-one thing that makes someone gullible is being a human,” she says.

“We’re all vulnerable to emotional manipulation in one way or another as we all respond to certain things emotionally. And when emotions are up, logic is down. What’s more, arrogance is often a big factor: the minute you think you can’t be caught out, you’ll be caught out.”

Manipulating the vulnerable

Often, the people most susceptible to financial crimes are those in vulnerable circumstances.

“According to the FCA, there are four key factors that can create this kind of vulnerability, and they’re the ones to keep an eye out for,” says Hannah-Jo Coffey, Vulnerability and Client Assistance Manager at St. James’s Place. “These are health, life events, resilience and capability.”

Professor Keith Brown, an expert who advises the government on such matters, believes it’s also important to be aware that there are many different kinds of financial fraud that can play on people’s vulnerabilities. “We’re starting to recognise that fraud and scams are not only driven by serious criminals and organised crime,” he says. “At one end, you have that. Then in the middle, you have legitimate companies and organisations acting in an inappropriate way. For example, repeat selling of things week after week, maybe to someone who has dementia and doesn’t realise they bought the product every week for the past 10 weeks.”

“And the new area we’re starting to recognise is fraud within families. I get a lot of emails along the lines of, ‘My auntie or sister has taken all of my mother’s money – what can I do about it?’ It’s a huge area, but very poorly understood. The vast majority of family members are very supportive of each other. However, we do have this common scenario where older people lose their cognitive abilities and become potentially vulnerable to those around them.”

Another common vulnerability, continues Professor Brown, is loneliness. “My research is very clear: we can all be situationally vulnerable to fraud. During a crisis or momentary lapse, or what I would call a ‘hot state’ under pressure, you’re more likely to be defrauded, because you’re not thinking clearly or rationally. However, lonely people are far more at risk of being scammed, largely because of the lack of having somebody by you to double-check and ask, ‘Does this look right?’ If you haven’t got that, you’re much more likely to be influenced or guided down a path to being defrauded.”

Let’s be careful out there

To avoid being the next victim of scams, follow these simple tips to keep the scammers and cybercriminals at bay:

Beware of email and telephone scams

Unexpected emails may be malicious. Do not reply to an email asking for sensitive information, open an unexpected attachment or enter information into a website that you’re directed to by a link in the email. Instead, use a search engine to direct you to the organisation’s login page. Do not give sensitive information such as plan numbers to a caller if you’re unsure of who they are.

Protect your devices and online accounts with passwords

Where possible, passwords should be at least 12 characters long. Consider using phrases, unconnected words or letters from something memorable to you but difficult to guess, such as a poem or song lyrics. Change your passwords regularly where possible, using different passwords for different accounts, and considering using a password-manager app so you don’t have to write them down. Do not let anyone else know your passwords.

Be careful when using unsecure wireless connections

If you’re unsure whether the connection is secure, do not enter sensitive information into your device. If you’re using Wi-Fi in a public place, such as a café or hotel, the connection is less likely to be secure.

Be cautious on social media

Criminals often use social media to look for information such as your date of birth, place of birth or middle name, which they can use to take over your accounts or commit identity theft. Use the privacy settings and be careful about what you make publicly available. Be aware of what friends and family post about you, too.

For more case studies on how scams have befallen St. James’s Place clients in recent years, please view our latest quarterly The Investor magazine: https://adobeindd.com/view/publications/05399a73-c82e-4770- 8ac1-3bf7dcb494ea/slho/publication-web-resources/pdf/SJP_The_Investor_112_ASIA.pdf

About St. James’s Place

St. James’s Place is one of the largest wealth management companies serving the expatriate community living and working in Asia. We have many years of experience in Asia and have offices in Hong Kong, Mainland China and Singapore.

We are personally committed to providing quality face-to-face advice and the very best client service.

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