How to prevent identity theft from a Financial Advisor

My Father Got Scammed and it Affected Me.

We both had major account cleanup to do.
While I was in a meeting, my phone vibrated, but I decided to ignore it and let it go to voicemail. When it buzzed again and I noticed it was my dad calling for a second time—something he rarely did—I realized it must be urgent.

When I picked up, he explained that he had fallen victim to a remote access scam. He also said he had some of my passwords on his laptop. He got them when he helped me with my taxes before. He advised me to change them right away.

He was browsing a news site when a popup appeared, warning him that his computer had been locked and would only be unlocked if he called a specific number, supposedly for a well-known tech company. Even after my tech-savvy siblings warned him and I sent an article about this scam, he still made the call.

Over the next few minutes, the person on the other end guided him through the steps to grant them remote access to his screen. Once inside, they asked my dad to log into his financial accounts to check for any compromises.

Was the scammer logging his keystrokes to steal passwords? Or perhaps copying files like the one on his desktop labeled "Passwords," containing other account details? Sensing something was off, my dad quickly hung up the phone and shut down his computer. We had no idea what information the scammer might have accessed, but we knew we couldn’t risk waiting to find out.

Here’s what I did next to safeguard myself from identity theft—and what you can do, too.

I updated my account information to protect against identity theft

I immediately contacted my financial institutions to change my account numbers and followed up by updating my logins and passwords online. I had once read that it’s important to store a list of unique usernames and passwords somewhere offline, like in a notebook, where it can’t be hacked. Before this incident, I had carelessly used a mix of handwritten notes and an online document—an unsafe practice. Now, I rely on a password manager, which generates complex, unique passwords and stores them securely.

I stopped sharing my passwords

If someone gains access to your financial account and drains your money, your financial institution may not cover the losses if you’ve shared your password with anyone. (There are circumstances under which your losses may be covered, but it’s important to know the details and report any issues quickly.)

Even though I wasn’t directly scammed, by giving my dad access to my password, I put both my financial institution and myself at risk. In the future, if I want someone to access my accounts, I’ll add them as an authorized user with their own login credentials.

I added extra layers of protection

I started using two-factor authentication, authenticator apps, and PINs on all my accounts, including my email and phone, which now uses facial recognition for added security (biometric options like fingerprint unlock are another choice). Authenticator apps create one-time codes that expire quickly. I have also set up alerts for logins and notifications for transactions, like withdrawals.

Check with your banks and credit unions. Ask if they have extra security options. These may include limiting money transfers. This can help protect you from identity theft and fraud.

I froze my credit

I was lucky because I had already frozen my credit with the main reporting bureaus. I did this after several data breaches at stores where I shopped.

If you haven't done this, think about freezing your credit. You can do it online, by phone, or by mail. It's free and stops anyone from opening new accounts in your name. While a freeze limits access to your credit report, it can be temporarily lifted when needed, such as for a background check by a potential employer or landlord.

You can also freeze your children’s credit. This requires proof of identity for both you and your child if they are under 16. According to a Javelin Strategy & Research study, 1 in 50 children are affected by identity fraud, often without their family’s knowledge for years.

Maintaining strong security

My dad took similar steps to secure his accounts and now knows to ignore suspicious popups. We were lucky not to lose any money, but had we lost funds, our homeowners insurance might have covered the loss. I know someone who had a significant amount refunded by their policy after a scam. It’s worth checking if you have similar coverage.

Months after the incident, I was still addressing the aftermath. For example, I had to update my banking information on a government website with increased security measures. It was time-consuming, but far less stressful than dealing with identity theft, like when someone opens a credit card in your name, or fraud, like unauthorized purchases on your credit card—issues that friends of mine have faced. They were eventually reimbursed, but only after lengthy paperwork and back-and-forth with their banks.

We often think, “I wouldn’t fall for something like that.” I avoid answering unknown calls, don’t open suspicious emails or download attachments from unknown senders, and avoid clicking on links in messages from companies. Instead, I log into the company's website directly to check for updates.

While these habits are helpful, I realized I hadn’t done enough to protect my accounts from identity theft. Have you?

Sources:

https://www.fidelity.com/learning-center/smart-money/how-to-prevent-identity-theft

Disclosures:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information