Not long ago, a text message arrived on one of our financial advisors’ phone. It said, in official-looking language, that they had a number of outstanding traffic violations, and that failure to respond could result in loss of driving privileges, civil penalties, and possible criminal liability. There was also a link to click to resolve the matter immediately.
It was a scam. Obviously a fraud attempt... to someone who knew to look for it. But somewhere that same day, it’s almost guaranteed that a trusting 81-year-old clicked the link and opened themselves up to a lot of headache and real potential loss.
Why This Matters More Than People Think
What makes this particularly painful is that the victims are not, by and large, people who were careless or foolish. They are smart, accomplished people whose cognitive defenses have shifted in ways they may not fully recognize, or who were simply presented with a scheme sophisticated enough to fool almost anyone. We’ve spoken to a number of cybersecurity experts who will admit that they almost fell for the latest scam.
The fraud landscape has changed. It used to be that the hallmarks of a scam were fairly easy to spot - poor grammar, implausible claims, obvious pressure tactics. Today, artificial intelligence can generate flawless written communication, produce realistic voices, and even create convincing video of people who don’t exist. The scam that would have been obvious a few years ago may be nearly indistinguishable from a legitimate interaction today.
What Legitimate Financial Firms Actually Do
One of the more useful things to understand is how reputable financial institutions operate when it comes to money movement - because that knowledge can make fraudulent requests much easier to identify.
When a client calls to request a wire transfer or withdrawal, a well-run firm doesn’t simply process the request. It calls back - on a number already on file, not one provided in the same interaction - to independently verify that the request is legitimate and that it’s actually coming from the client. This isn’t bureaucratic friction. It’s a deliberate safeguard against exactly the kind of fraud where someone impersonates a client and requests an urgent transfer.
“I’m traveling and need you to wire money quickly - call me back at this number” is not how legitimate financial emergencies work. Any firm that processes that kind of request without independent verification is failing its clients.
Warning Signs Worth Knowing
The specific mechanics of fraud evolve constantly, but certain patterns tend to repeat.
Urgency is almost always present. Legitimate institutions don’t require you to act within the hour or risk losing something important. Scammers create urgency because urgency bypasses the instinct to stop and verify.
Unusual payment methods are a reliable signal. Requests to pay via wire transfer, gift cards, cryptocurrency, or any method that can’t be reversed or traced should prompt immediate skepticism. No government agency, utility, or legitimate financial institution requires payment in gift cards.
Unsolicited contact - a phone call, text, or email you weren’t expecting - deserves extra scrutiny regardless of how official it appears. The sender’s name, the caller ID, even a video image on a screen can all be fabricated with tools that are now widely available.
Family members contacting a financial advisor to say “Mom got a strange call today” or “Dad wired money somewhere and we’re not sure why” - these are the moments when the value of an established advisor relationship can extend beyond portfolio discussions.
The Role of Established Relationships
There’s a reason sophisticated fraud operations specifically target people who don’t have close relationships with financial advisors. An isolated individual is a much easier target than someone whose advisor is going to call back on a verified number, ask a few questions, and take the time to make sure something feels right before any money moves.
This is one of the underappreciated benefits of a long-term financial relationship. An advisor who has worked with someone for fifteen years knows their voice, knows their patterns, knows when something seems off. That familiarity can be a meaningful part of the client-advisor relationship, extending beyond investment management.
Adult children can also serve as important advocates - not by taking over, but by staying connected enough to notice when something changes. A parent who mentions a wonderful new “friend” who has been very helpful with financial matters, or who seems reluctant to discuss recent financial activity, may be in the middle of something that needs attention.
These conversations require a delicacy that honors both a parent’s autonomy and a family’s legitimate concern for their wellbeing. But they’re worth having - ideally before there’s a reason to have them.
A Final Note
Financial fraud is a serious topic, and this article has treated it seriously. But the underlying message isn’t meant to be one of fear. Rather, it’s one of preparation.
The people who navigate these risks well aren’t the ones who are suspicious of everything. They’re the ones who have the relationships, the knowledge, and the habits in place to recognize when something doesn’t feel right - and who know who to call when that happens.
That’s something worth building long before it’s needed.
Rawe Financial is a family-owned financial services practice in Northern Kentucky, helping individuals and families navigate every stage of life. If you are considering having someone in your financial corner, we’d welcome a conversation.