ROMANCE SCAMS MOVING TO THE TOP

Years ago I had a client for whom I created a financial plan designed to get them comfortably to the end of their lives. A few months after the husband passed away, we received a call that was out of the ordinary. This nice lady needed $25,000 to pay for some remodeling in her home. I discussed with her that the amount requested would impact the financial plan and potentially put her at risk, but she was insistent.
 
Over time, requests for funds continued to come and my yellow flags were turning red. A financial advisor has a legal obligation to be alert for signs of fraud so I sat down for a serious conversation with this lady. She admitted that after her husband’s death she was very lonely but a kind man, (30 years younger,) had suddenly appeared to help her and they had become romantically involved.
 
We talked about other potential motives her boyfriend might have, and I cautioned her that her account was drawing down dangerously fast, but she was in love and could not be convinced. We require all clients to authorize us to contact a third party in such situations so I decided to call the lady’s daughter. Her daughter got involved but was also unable to persuade her love-struck mother. Shortly thereafter the account was mysteriously transferred from my office. It is a sign of potential fraud when criminals act to separate the victim from the people who care about them.
 
As you can imagine, once the money was gone, the boyfriend disappeared. The mother was devastated not only financially but emotionally. She had lost the love of her life, or so she thought. This is one reason we advise against major decisions following the death of a spouse. Death notices are public and unfortunately criminals can use them as a list of potential victims who are in a vulnerable state.
 
We learned at our recent company national conference that romance scams are becoming increasingly common in our digital world. Criminals today don’t need to move in with their victims, they simply use the internet, and dating sites, to create loveable but fictitious people and lure the lonely into phony relationships. They are very convincing and usually search out their victims first to learn their hobbies and likes to help create an emotional connection.
 
A major protection against being scammed is to remember that no financial fraud can occur unless money moves. As soon as money in any form is involved – stop immediately and re-evaluate the situation. A criminal cannot defraud you unless he can convince you to move money or assets. And you can be sure that before the request for money, there will be a strong play on your emotions. Help protect yourself right now by agreeing in advance with a trusted friend to consult with each other in any situation where someone makes an unusual request for you to move money.