There is no shortage of horror stories about people getting scammed out of hundreds or even thousands of dollars. While perusing the news app from the comfort of our couch, reading accounts of how a stupid so-and-so opened an obviously suspicious attachment and a hacker drained their bank account, it’s easy to say things like, “I’d never fall for that!” But would you?
It is a harsh reality that, under the right conditions and with the right threat, anyone can fall victim to a financially devastating scam. The truth of this situation was highlighted when a finance guru, someone armed with enough financial acumen to publicly advise others, lost $50,000 to a scammer pretending to be a federal agent.
Charlotte Cowles, a seasoned financial advice columnist for New York Magazine’s digital fashion news site, The Cut, wrote a first-person account of how she packed up $50,000 in cash in a shoebox, carried it out to the sidewalk in front of her house and willingly handed it over to an unknown person in a white Mercedes SUV. In retrospect, she was humiliated that she couldn’t see the red flags, but the way these criminals intricately plotted every step would have convinced most people.
I recommend taking the time to read her full story, but to give you the boiled down version, this elaborate scam started early in the day when a woman claiming to be from “Amazon’s customer service” called to inquire about unusual activity on Charlotte’s account. The woman informed her this was a common problem for the company, provided a case ID number and recommended that Charlotte immediately check her credit cards. She shared that the issue was widespread enough for the company to collaborate with a liaison at the Federal Trade Commission and offered to refer her to the liaison for additional assistance.
After establishing the connection, the FTC agent provided his badge number for reassurance and a direct number to reach him at. Additionally, he verified personal details like her full name and Social Security number. Convincing, right? That’s when things took a turn. The agent shared that he had been monitoring her case for a considerable period of time and, to date, there were 22 bank accounts, nine vehicles, and four properties registered under her name. The bank accounts had wired more than $3 million overseas, mostly to Jamaica and Iraq, and he wondered if she could provide him with any information regarding this.
The situation spiraled out of control from that point on. The agent texted her a photo of her ID, stating that it had been found in a vehicle rented under her name that was abandoned on the southern border of Texas. The trunk of the car contained blood and drugs, and was linked to an even larger drug raid. He added that there were warrants out for her arrest in multiple states and that she was facing heavy charges including: cybercrime, money laundering, and drug trafficking.
She frantically Google searched her name, looking for any warrants. Nothing. Sensing her rising unease, he asked if she had recently used public Wi-Fi. She had, at the airport. “Ahh…” he said, “that’s how most of these things start.”
As she texted her husband that she was in serious trouble, the agent offered her a solution, but it required absolute secrecy. Everyone was a suspect. They were watching her every move. The agent said her laptop was hacked, her home was being watched and they could even see her two-year-old son playing in the living room at that moment. At the mention of her son, she was all in to resolve the problem. Sadly, you know the heartbreaking ending of the story. She drained her savings and hand-delivered it in a floral-printed shoebox to the scammer.
Here's the real kicker: if Cowles, armed with financial acumen and a journalist’s skepticism, can be led astray, what chance do the rest of us stand? It’s the digital Wild West out there, and the outlaws are always looking for their next big take. This tale isn’t just a wake-up call – it’s a blaring siren for small business owners everywhere! If you think you’re too smart to get scammed, think again, because it’s happening all the time.
When Charlotte began to share her story, it seemed that everyone knew someone who had gone up against a scammer and lost. One friend’s criminal-defense-attorney father had been scammed out of $1.2 million. Another was a real estate developer who was fooled into wiring $450,000 to someone posing as one of his contractors. There was even a Wall Street executive, who had been conned into draining her 401(k) by a man she met at a bar. These stories are everywhere.
Cybersecurity cannot be ignored. With the AI tools now available, it is becoming more and more difficult to identify scams. If you want to protect yourself, your family, and your business, it is IMPERATIVE that you take your security seriously. Every day, hackers are buying and selling personal information, like Charlotte’s Social Security number, on the dark web to hackers who will then use that information to run scams just like this one. You or your loved ones could be next.
This ISN’T meant to scare you, although it absolutely should; it’s meant to educate you and give you the upper hand to go up against these criminals. To protect what’s yours. The best way we can help is to offer a FREE Risk Assessment. We’ll do an in-depth evaluation of your network’s security, including scanning the dark web for leaked information, and provide you with a comprehensive report of what you need to do to be secure.
Get started by clicking here to schedule a quick 15 minute call or contact us at 281-646-1200.
