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Start the Year with Stronger Fraud Awareness Thumbnail

Start the Year with Stronger Fraud Awareness

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Start the Year with Stronger Fraud Awareness

A new year brings fresh goals: cleaning up finances, reviewing accounts, and setting plans for the future. Unfortunately, it also brings a surge in fraud attempts targeting investors, retirees, and professionals with assets.

Criminals know that January is a time when people update information, respond to tax-related communications, and speak with advisors. That makes it an ideal time for scammers to impersonate trusted institutions and apply emotional pressure.

At Pacific Asset Management, we work closely with our custodian, Schwab, who takes cybersecurity seriously. But fraud often doesn’t happen inside the custodian system; it happens outside, through phone calls, email, texts, and social media.

The New Landscape of Fraud: Impersonation + Urgency

Modern scams rely less on hacking and more on psychological manipulation. Here are three major trends:

1. Institutional Impersonation

Fraudsters now spoof official phone numbers, brand logos, and verification screens. Impersonation of custodians (like Schwab), banks, and IRS-related entities is increasingly common.

Schwab reports two major impersonation threats:

A. Imposters posing as Schwab employees Scammers may spoof Schwab phone numbers and reference real employee names or photos. They often claim there’s a security issue and request urgent action such as providing login credentials or verification codes. With these, they can reset passwords, lock clients out, and initiate unauthorized transactions.

B. Fake Schwab websites and phishing links Fraudsters use search engine manipulation and SMS phishing (“smishing”) to push fake Schwab login pages that look legitimate but are designed to steal credentials and two-factor authentication codes.

2. AI-Enhanced Communication

AI voice cloning and scripted responses now allow scammers to sound professional and confident. We’ve seen callers mimic legitimate call center structure: transfers, confirmations, and “security checks” -- to create the appearance of legitimacy.

3. Manufactured Urgency

Urgency is the primary tool used to override critical thinking. Common lines include:

  • “Your account has been compromised”
  • “You must verify your identity immediately”
  • “This is a time-sensitive compliance issue”
  • “A family member is in trouble”

The purpose is always the same: prevent verification.

The Most Important Rule for 2026: You Never Need to Resolve It Immediately

If Schwab, or any financial institution, contacts you about security, there is no situation in which acting instantly is your only option. You always have time to verify.

The right response:

1. Pause. Do not engage on the same call.

2. Verify independently:

  • Call Pacific Asset Management directly; or
  • Call Schwab (or other financial institution involved) using a known number (not one provided by the caller); or
  • Log in using a saved bookmark (not a link or search result).

Criminals can spoof caller ID, email display names, and web search results, but they cannot intercept a call you initiate to a verified number.

Other Scam Practices

Outside of custodian impersonation, common areas of fraud include:

  • Lookalike websites: fake retail or service sites with slight URL misspellings
  • Phishing emails and texts: often disguised as shipping updates or account alerts
  • Fake social media ads: using steep discounts or influencer-style promotions
  • Requests for gift card payment: no legitimate business demands gift cards
  • Public Wi-Fi risks: unsecured networks exposing payment or login details

Strong cybersecurity no longer just means having a good password: it means questioning context. What is really going on here?

Safeguarding Tactics to Use Immediately:

  • Verify identity independently: Never rely on numbers or links provided in a call, text, or email.
  • Never share login credentials or verification codes : No legitimate institution, including Schwab, will ask for passwords, codes, or remote access. Schwab will never ask you to download third-party software.Save Post
  • Use bookmarks for important sites: Type custodian URLs directly or use saved bookmarks rather than search results or links.
  • Discuss a family “pause plan”: Especially important for older relatives. If someone demands immediate action, the correct reply is: “Let me call you back after I verify.”
  • Consider a family passphrase: A simple phrase can confirm identity if a family member claims to need help or money.
  • Use credit freezes when appropriate : Freezes with Equifax, TransUnion, and Experian reduce the risk of fraudulent account openings.

Bottom Line: Time Is Your Ally

Whether the caller claims to be Schwab, a bank, the IRS, or even a family member in crisis, slowing down is your strongest defense. If something feels off, it probably is.

These scams do not reflect a breach at Schwab. Custodial systems remain secure; the risk comes from social engineering outside the platform.

Most modern financial fraud can be defeated by one habit: pause and verify independently. You always have time to confirm.

We’re here to protect not just your assets, but your peace of mind. If you ever receive a suspicious communication: Call us first before acting, and we will navigate this together.

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