Scammers will spend weeks building trust and directing the victim to what looks like a legitimate website. After making a small amount of money larger, the con artist will convince the victim to put all their money into the fake exchange, what they call fattening the pig. The butchering comes when the money then disappears.
Scammers will spend weeks building trust and directing the victim to what looks like a legitimate website. After making a small amount of money larger, the con artist will convince the victim to put all their money into the fake exchange, what they call fattening the pig. The butchering comes when the money then disappears.
If you need some topics for an intergenerational conversation this holiday season, consider bringing up money, investing and the latest scams.
Polling shows that young adults either don’t trust or know enough about banks, stocks or bonds and could use a little coaching to improve their financial future. Police reports show that older adults are getting caught in telephone and internet scams and need protection.
Here’s a chance to make sure everyone’s new year is happier.
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A few weeks ago, I got a text message from someone with an out-of-state phone number saying they were picking up their luggage and would soon be outside the airport terminal. I replied that the sender had texted, using SMS, the wrong number.
The messenger replied with a thanks, introduced herself and sent a photo of a young Asian woman. The message was a smishing attempt, the texting equivalent of phishing, and was the opening gambit of a pig butchering scheme.
The so-called butchers send out thousands of emails every day to manipulate the small number of older people who will engage with the attractive young woman. The conversation will eventually shift to cryptocurrencies, and she will mention she knows an insider who has a guaranteed method for making money.
The scammers will spend weeks building trust and directing the victim to what looks like a legitimate website. After making a small amount of money larger, the con artist will convince the victim to put all their money into the fake exchange, what they call fattening the pig.
The butchering comes when the money then disappears.
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Other scammers offer cryptocurrency riches through AM radio advertisements or chain emails. The Texas State Securities Board recently shut down a scheme involving “fraudulent certificates tied to digital assets, investments in a staking pool in a proprietary metaverse and a token that can purportedly be staked for rewards that can be converted to real physical gold.”
There are countless variations of cons, but if you can impart one piece of advice to an older relative, it is this: If someone asks you to purchase a gift card and then read off the numbers, nothing good will come of it.
Frankly, they shouldn’t read any number with a stranger.
Lastly, a new devastating con is a fake phone call. A scammer clones your voice and then calls an elderly relative and uses artificial intelligence to desperately beg them to immediately send money. Warn your elders to ask a question only you can answer to ensure they don’t get fooled.
Older folks may fall victim to high-tech scams, but young adults fall victim to their financial illiteracy and complacency. Oldsters can share a trick or two.
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Millennials and Gen Z have reached adulthood after surviving the Great Recession and the COVID-19 pandemic. They have every reason to doubt our institutions, but too many are choosing what they call the “soft life,” which leads to “soft saving.”
Influencers pitch the soft life as a healthy way to prioritize mental health, reduce stress and avoid the rat race. However, some advocate spending more today and saving less tomorrow. A lesson in compound interest can make all the difference.
A survey by consulting firm EY found that young adults also trust financial tech companies that offer services via smartphone more than traditional banks. But many of these apps are lightly regulated and not covered by the Federal Deposit Insurance Corp. A discussion about federal deposit insurance might be helpful.
The same apps often allow users to store their savings and then trade in cryptocurrencies and stocks after a few quick clicks through dozens of pages of disclaimers. The user interfaces feel like video games, and getting caught up in fads is easy.
The best examples are the huge price swings for GameStop, the original meme stock. A thoughtful conversation about how to value a currency, stock or bond can change a young person’s financial trajectory.
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Tech companies target young people with ads promising a new way of managing their money and growing their retirement funds. But the old ways of growing remain the safest and most reliable.
Every worker should enroll if their employer offers a 401(k) retirement plan with a match. Then they should set aside six months of salary. After that, they can talk about other investments.
No generation has a monopoly on wisdom. The holidays are a great time to share our knowledge and listen to one another, building the bonds that truly enrich our lives.
Chris Tomlinson, named 2021 columnist of the year by the Texas Managing Editors, writes commentary about money, politics and life in Texas. Sign up for his “Tomlinson’s Take” newsletter at HoustonChronicle.com/TomlinsonNewsletter or Expressnews.com/TomlinsonNewsletter.
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