Among the millions of “Big Game” news articles this past week was a story about a woman who lost her life savings thinking she was in an online relationship with Brad Pitt. The scam used social media, private messaging apps, and AI-generated images to dupe her into lending “Pitt” money, claiming his funds were frozen because of his divorce from Angelina Jolie.
You might wonder how anyone could fall for such a blatant lie, but not all long cons involve celebrities. Unfortunately, lonely and vulnerable individuals are prime targets for relationship scams. During the pandemic, many people craved human connection and turned to dating apps or social media—many still do. Since meeting people online is common, it’s not always a red flag. Scammers build trust by bonding over shared experiences, such as seeking love, mourning a deceased spouse, or dealing with estranged family members. Once trust is established, they ask for money, often citing an emergency or an investment opportunity.
This type of situation is where having a financial adviser can help. Advisers do more than manage money; they develop client relationships, which enables them to spot irregularities. We understand our clients’ goals, mannerisms, and how they talk and write emails. While advancements in AI make scams harder to detect, we have procedures to verify every transaction. If we receive a voicemail or email request to wire money, our first step is to call the client to confirm they initiated the request.
If the client’s request seems unusual for their financial plan, we ask why the money is needed—not to judge, but to ensure their best interests are protected. Legally, we cannot stop clients from accessing their money. However, if someone says they need funds for a down payment on a real estate opportunity, we assess whether this was part of their financial plan—was this something they had been saving for? Was it accounted for in their cash flow projections, or does it affect other goals, such as their retirement timeline? Even if it’s a legitimate, spontaneous decision, we help ensure it doesn’t derail their long-term plan.
Scams often target seniors who may have diminished capacity. Many custodians recommend listing a “trusted contact” on an account. This person doesn’t have access to funds, nor is specific account information shared, but they can serve as an extra layer of protection. A trusted contact should be someone the investor regularly sees, who can recognize out-of-character behavior or cognitive decline. This is someone the custodian or adviser can reach out to if they suspect the investor is a target of financial exploitation.
As advisers, we follow strict checks and balances to ensure we are acting on sound client instructions. If fraud is still suspected, we can alert the custodian’s security team. For example, Charles Schwab has a dedicated unit that investigates potential scams, working with the receiving bank or institution to identify unusual transactions, frequent deposits or withdrawals, or conversions to assets like cryptocurrency, which can be harder to track.
While it might seem like a lot of bureaucracy just to access invested money, these safeguards exist to protect investors. At the end of the day, we aren’t just managing portfolios—we’re looking out for our clients. More importantly, we know these measures work because we’ve successfully identified and prevented fraudulent activity, helping clients avoid financial devastation.
If you have questions on how to spot a scam or believe you’ve fallen for a scam, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Listen to the February 8, 2025 “Henssler Money Talks” episode.