WEALTH MANAGEMENT | Q2 12
Strategic research report You’ve Got Mail — Proceed with Caution Increased financial identity theft calls for heightened investor awareness Karen O. Denise Senior Manager, CAPTRUST Wealth Client Services
The term doppelganger is defined as “an apparition or double of a living person.”1 It’s originally a German word that literally means “double-goer” or “double-walker.” This concept appears in literature and cinema as the proverbial evil twin, with examples including the short story “William Wilson” by Edgar Allan Poe, and the 2010 thriller Black Swan starring Natalie Portman. In popular culture, the protagonist is often plagued by visions of his or her lookalike, with the specter usually signifying some type of diabolical foreshadowing for the hero or heroine. Sometimes these malicious alter egos assume the lead character’s identity, representing themselves as the heroes while in reality their true character is anything but heroic. Obviously, these are fictional examples of doppelgangers, but as many individuals know all too well, the threat also applies to us in our everyday lives in the form of identity fraud. In fact, a report administered by Javelin Strategy and Research states that over 11 million Americans were subject to identity fraud in 2011.2
In This Issue Market News
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Wealth Management Planning
4
Portfolio Strategy
12
Index Returns
15
Asset Allocation Research
16
Discretionary Research Highlights 18 Investment Asset Classes
20
CAPTRUST in the News
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As financial identity fraud commonly goes, criminals attempt to take over a person’s identity by illegally acquiring personal information in an attempt to conduct unauthorized transactions within the individual’s financial accounts. Criminals use various methods to commit identity fraud. One technique involves “phishing,” or the act of obtaining another’s account information under false pretenses. The fraudster might send what appears to be a very legitimate email, ostensibly from someone at a financial institution, requesting personal information such as a Social Security number, brokerage account information, or the size of an investment portfolio. Others have even received emails that claim their account will be closed if certain information is not updated. After the recipient unknowingly clicks on a provided link within the email to update the information, the deceiver then takes this knowledge and uses it to assume the victim’s financial identity. Another increasingly disturbing trend involves fraudulent individuals “hacking” into an investor’s email account and sending messages to the investor’s Financial continued on page 3