In an era where digital fraud is skyrocketing, protecting our clients’ assets has never been more critical. The statistics tell a sobering story: from 325,000 reported cases of senior fraud in 2001 to a staggering 5.1 million cases by 2022. This dramatic increase isn’t just a number – it’s a wake-up call for financial institutions and advisors everywhere.
The Evolution of Financial Fraud
Gone are the days when financial fraud required physical theft of mail or in-person deception. In 1980, perpetrating financial fraud demanded considerable effort and physical presence. Today, with the digital revolution, fraudsters have countless new avenues to exploit, making it easier than ever to target vulnerable individuals.
Our Multi-Layered Security Approach
At our firm, we’ve implemented robust security measures to protect our clients’ assets. While we maintain discretion about specific security protocols to stay ahead of scammers, here are some key principles we follow:
1. Personal Verification
- No email-based money transfers
- Direct phone verification for all fund requests
- Photo ID documentation
- Visual recognition protocols for in-person visits
2. The Trust Network
One of our most effective security measures is the “trusted contact” system. When setting up client accounts, we establish a secondary contact who can verify unusual transactions, especially in cases where:
- The request seems out of character
- There are concerns about cognitive impairment
- The transaction pattern differs from normal activity
3. Deliberate Process
We believe in taking a measured, careful approach to transactions. While this might seem slower in our fast-paced world, it’s a crucial safeguard against fraud. Our deliberate verification process has repeatedly proven its worth in identifying potentially fraudulent activities before they can cause harm.
Industry-Wide Protection
Our security measures work in tandem with our broker-dealer, LPL Financial, creating multiple layers of protection. While no system is completely impenetrable – as evidenced by successful attacks on even government institutions – these layered defenses significantly reduce the risk of successful fraud attempts.
What To Do If You Suspect Fraud
If you believe you or someone you know has been targeted by financial fraud, don’t hesitate to act. The FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov is available for reporting such incidents.
The Bottom Line
In today’s digital world, protecting client assets requires more than just good intentions – it demands robust systems, careful verification processes, and a willingness to take the time needed to ensure security. While this might occasionally mean slightly slower transaction times, we believe this careful approach is essential for safeguarding our clients’ financial future.
Remember: when it comes to financial security, it’s better to be thorough than sorry. In an age where digital fraud is increasingly sophisticated, taking extra precautions isn’t just prudent – it’s necessary.
Learn more about how we protect clients — as well as advice on other topics — on the Get Ready For The Future Show.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
