Your Financial Future: Don’t get taken during the season of giving
This year more people are Christmas shopping online. This was already a growing trend, but the pandemic has increased the volume.
Criminals continue to try and steal your identity. They use many different techniques to accomplish this. There are several that try to take advantage of your purchasing from Amazon.
I have received several different e-mails claiming to be from Amazon saying that there is an issue with my account. They come from a generic email address and ask you to respond by clicking on a link. These are phishing scams that try to get your passwords or banking information. Delete these e-mails and do not respond. Getting people to clink links is one of the most common ways to spread computer viruses. Just log into your Amazon account to find out if this is a real problem 鈥� it probably isn鈥檛.
This week I received an e-mail telling me that my order sending a $900 computer to some address in Austin, Texas that would be delivered tomorrow. This would cause great concern for some people since they did not place this order and you have no idea about the address that is scheduled to receive the order. This is another scam to get you to call and provide information. Check your order tab at Amazon and you will see this is not an order being charged to your account.
Another common scam is to get an email that there is a problem with your account at the bank. Often this is a bank that you do not conduct business with. Why would anyone respond to these emails? Some people might hope they inherited an account or just hope they get a pleasant surprise. Do not answer or click any links.
The majority of seniors have received emails claiming to be the Social Security Administration. They often state that there is a problem with your Social Security account. They may threaten to suspend your account or demand some form of payment. The SSA will never do these things. I have even heard of cases where they know the last four digits of your Social Security number. Sometimes, they can even fool your Caller ID to make it look official.
You make the call to the local SS office to see if there is an issue. Most of the time, there will not be anything wrong. If you are not sure, ask a trusted friend or relative to help you resolve the issue. Do not return unknown calls, texts or emails. Do not be embarrassed if you shared personal information or suffered a financial loss. Report it to authorities. You can learn more at oig.ssa.gov/scam.
Another area where people often lose money unexpectedly is through bank overdraft fees. According to a survey by Bankrate.com, the national average charge is $33.47. If you have multiple checks clear on the same day or recurring bills hit at the same time, you could get charged many of these fees in one day. It has been estimated that up to one-third of all checking accounts over draw at some time in a year. It is estimated that banks collect more than $30 billion in these fee each year.
There are some steps you can take to avoid these charges. Keep a more accurate balance of your account. Remember to account for any other fees or recurring bills. Banks are required to get your permission to charge overdraft fee on your debit card. According to Peter Smith at the Center for Responsible Lending, 鈥淵ou can opt out of these overdraft protection programs. Your debit card will just be declined if you try to make a purchase and your account does not have enough money in it.鈥�
Stay in your budget and watch out for scams this holiday season, and you will have less stress in your financial life.
Your Financial Future is written by certified financial planner Gary W. Boatman, MBA and CFP, who also wrote the book, 鈥淵our Financial Compass: Safe Passage Through The Turbulent Waters of Taxes, Income Planning and Market Volatility.鈥� If there is an area that you would like to see discussed in the column, send your suggestions to gary@BoatmanWealthManagement.com.