More and more often, you can find stories in the press and on social media about people who have lost all their savings simply because they fell for fraudulent phone calls from banks or fake investment brokers. The techniques used by financial fraudsters are constantly changing and improving, making the issue of your financial security more pressing every year. Here is an overview of 10 guaranteed tips to help you avoid falling for fraudulent phone calls from banks or brokers. So, the next time you receive a suspicious phone call, ask yourself these 10 questions:
1. What is the Caller’s Name?
When we receive an unexpected call from an unknown number or are in a hurry, we easily forget how and whether the caller introduced themselves. Did they mention their full name? Who exactly do they represent? Are they an employee of a bank or other financial institution, or an independent consultant? Do not trust a caller who is unable to reveal their identity.
2. I am Supposed to Come Into Wealth, But How Exactly?
Fraudulent calls from banks and brokers often follow the same scenarios. You are asked to reveal your login details to protect your account from unnamed hackers. You have won a competition that you did not participate in. An inheritance or sponsorship gift from an unknown source awaits you. You have received an exclusive financial offer without further details. Whatever type of scam it is, it is accompanied by a lack of information.
3. Can I Meet the Caller in Person?
It is in the interest of an honest financial advisor to meet with you in person—especially if you, as the client, take the initiative. This will allow them to better orient you to their services, analyze your needs, and deepen their client relationship with you. Try to bring up the topic of a personal meeting – if this is out of the question, why would you trust such a financial advisor?
4. How to Recognize Fraudulent Websites?
You receive a link to a website from the caller that appears trustworthy. However, you should check it carefully. Can you navigate to different subpages, or can you only see the home page without any further content? Does the website display the company’s registration number and other mandatory information? Also, beware of fake websites of well-known brokers or banks that appear identical to the real ones at first glance. It is not that difficult to copy a logo and imitate the design of an official broker or bank website.
5. Can I Call Them Back?
You can subject the suspicious caller to another test: simply ask them for their contact details. Alternatively, excuse yourself from the call and suggest that you call back the number from which they are calling. Among other things, this will protect you from so-called spoofing: a fraudster pretends to be someone else and can even disguise themselves as a known number. When you call back, the original caller will of course not answer on the other end.
6. Are They Promising Me a Risk-Free Deal?
When it comes to investment offers over the phone, zero risk and 100% guaranteed returns always sound suspicious. They cannot exist due to the very nature of investing. Financial markets are inherently unpredictable—after all, you are not just predicting whether a particular company will perform well, but rather whether it will perform better or worse than market expectations.
7. Do They Provide Me With Added Value?
Telemarketing, like direct email marketing, is a completely legitimate marketing method. It allows financial advisors to cultivate relationships with clients, providing them with the latest information about new products or exclusive discounts. It is also common practice to send educational materials that you can trust – unlike what ChatGPT will advise you. However, scammers cannot bring you any added value in the form of knowledge, time savings, or money.
8. Do I Feel Pressured?
A significant red flag for telephone financial offers is pressure being exerted on you. You are rushed and begin to feel stressed. Time constraints or limited offers are often used as excuses for such pressure.
9. Does the Financial Broker Have a License?
In another common scenario, the caller promotes the services of a broker, but a few minutes of online research reveals that the broker has no license or a very unreliable one. You can find out more about licenses on this page.
10. Does the Caller Respond to My Questions?
A scammer will call perfectly prepared. They may know your address, your account number, and in the most frightening cases, they will have information about someone close to you, whom they will try to impersonate. However, you should be suspicious if your phone call is more of a monologue, with the caller not letting you get a word in and avoiding your questions. An honest individual, who of course does not impersonate anyone, will, on the contrary, answer your questions willingly and expertly.
