A scam is just a phone call away

We used to warn our clients about the ‘run-of-the-mill’ phone scams, such as calls from ‘agents’ pretending to work for Social Security, or desperate phone calls from ‘grandchildren.’ Then there were the ‘Oh no, your computer has been compromised’ pop-ups that seemed to target all of us. (Hopefully, you all now have McAfee, or a similar virus protection software. Don’t you?) It may be hard to believe, but those calls and scams were from the good old days, because scams have gotten a lot harder to detect. 

Thanks to AI (artificial intelligence), the voice at the other end of the phone line may really be your grandchild, or child. Unfortunately, the words they say may not be coming from their mouths. When you receive an urgent, desperate call from a loved one, and you’re sure it’s their voice, how much time will you have to confirm that? They most likely need money, and they need it NOW. To make sure you’re not scammed by high-end technology, and to protect your checkbook, it’s time to introduce the code word. 

Does the family have a favorite pet? Favorite memory from a beach? Favorite restaurant? Favorite color? Let an unforgettable word become the family code word, a word that everyone in the family can use when either making a desperate call, or when receiving one. 

Let’s say grandpa always had a blue cap, and he wore it everywhere, and everyone in the family always joked about his blue cap. There’s your code phrase. When the phone rings, and your grandson Owen is on the line crying that he’s in jail and needs bail money, ask him about grandpa’s favorite article of clothing. Even if the ‘caller’ guesses hat (rather than cap), it’s less likely the guess will be blue hat. If those words don’t come out of Owen’s mouth in the intended order, hang up. It’s a scam. 

(Of course, if Owen is in a fraternity away at college, it’s likely he’s too drunk to remember how to even spell Owen, so the idea of remembering the code word or phrase is probably a far reach. Thus, you may actually hang up on your grandson. But if he’s really at a police station, they’re likely to let him call you later. On the other hand, a night’s rest in a police station might be a very good lesson for Owen. And it will be a great story to tell when he’s head of Mergers & Acquisitions for a major bank.)

If a phrase like ‘blue cap’ seems too easy for your family code word, go to two-factor authentication. “Owen, listen to me! What did you and grandpa share the night we went on the dinner cruise? If Owen can’t remember ‘ice cream sundae,’ leave him in jail. (And then take his name off his 529 plan and give the funds to the granddaughter who, unlike Owen, never cheated while playing Scrabble with you.)

Share a code word or phrase with your entire family. Somewhere, sometime, it will save someone a lot of money, and a lot of aggravation. 

S.F. Ehrlich Associates, Inc. (“SFE”) is a registered investment advisory firm in New Jersey that offers investment advisory, financial planning, and consulting services to its clients, who generally include individuals, high net worth individuals, and their affiliated trusts and estates. Additional disclosures, including a description of our services, fees, and other helpful information, can be found in our Form ADV Part 2, which is available upon request or on the SEC's website at www.adviserinfo.sec.gov/firm/summary/121356.

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