By SJS Senior Advisor & Managing Director Jennifer Smiljanich, CFP® and SJS Associate Advisor Catherine Stanley.
If I asked you the question: How have computers, mobile devices, and the Internet benefited you, you probably would have no trouble answering. These tools have become such a part of everything we do that we often take them all for granted. The fact is – technology has completely upended how we view the world, how we share information, how we do business, and how we communicate.
There is, however, an undesirable side to the technology revolution that seems to reveal its depths daily. The alter ego to the Internet’s free-flow of information is the creature called “cybercrime.” And as long as we are wired together, the network we all enjoy will include the criminal element from around the globe.
Case in point, the Internal Revenue Service recently announced that Americans who received COVID-19-related stimulus checks have been subject to many text and email scams, thus costing many Americans significant money (and time) at a time when they may most need it.[1] According to PurpleSec LLC, cybercrime since COVID-19 onset is up nearly 600% compared to previous years.[2] The IRS Commissioner recently said, "Criminals are relentlessly using COVID-19 and Economic Impact Payments as cover to try to trick taxpayers out of their money or identities. This scam is a new twist on those we've been seeing much of this year. We urge people to remain alert to these types of scams."[1] It is important to emphasize that the IRS doesn't initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information.[3]
At SJS, we know that cybercrime is becoming more prevalent, and we recognize that no business is immune. We are aware that client accounts may be targeted, and email fraud can be a real threat.
CYBERCRIME IS COMMON
According to a Securities and Exchange Commission report from February 2015, 74% of Registered Investment Advisors like us reported they have experienced cyber-attacks, primarily involving malware and fraudulent emails; we think that this number has probably increased over the past few years.[5] Our core value of “Continuous Improvement” comes into play as we work vigilantly to keep up with an ever-changing landscape.
The custodians we typically work with, including Schwab Institutional and TD Ameritrade, are deeply committed to safeguarding client assets. Both custodial web sites use advanced encryption technology, including 128-bit Secure Sockets Layer (SSL3) encryption. This allows us and you to communicate and share information more safely with them. Both custodians also maintain advanced firewalls, which separate public web servers from the servers that contain account holders’ personal data, to keep unauthorized parties from accessing your personal information. Additional measures, including security certificates, token technology, anomaly detection, and restricting access to client information further help to protect the privacy of your information.[6][7]
There are several other steps you can take to help protect your personal, private information:
Update your computer’s operating system and browser.
Activate / install your computer’s firewall, antivirus software, and anti-spyware software.
Use two-factor authentication (such as requiring both an online password and phone security code text when logging into an account).
Be cautious using public computers.
Use wireless networks you trust.
Don’t use sensitive information in your login ID or password, and especially avoid using your social security number and date of birth.
Create a unique password and change it at least every six months, and DON’T share it with others.
Be very cautious responding to an email, call, or text that asks for your account number, user ID, PIN, password, or other personal information, even if it appears to be from a source you trust or recognize. Always double check that the source is legitimate, such as by asking for a separate way to provide this information and searching online whether the request is safe.
Make sure that SJS has updated contact information for you, especially email and telephone numbers – including an emergency contact, if you so desire.
So the next time we ask you to provide a verbal confirmation before we act on an email request, or when we send you information via your MySJS portal or an encrypted email, know that we require this extra step with your best interests in mind. Our goal is to make sure any attempted fraud is unsuccessful. It’s important to be aware and prepared, but we are hopeful this information will reassure you, not raise additional concerns.
If you want to learn more about our privacy and security policies, or those of the custodians we typically work with, please ask us. In the meantime, we’ll continue doing our best to safeguard your information, leaving technology a true enhancement to our lives.
Important Disclosure Information And Sources:
[1] “Security Summit partners warn taxpayers of new COVID-related text scam.“ Internal Revenue Service, 04-Nov-2020, irs.gov.
[2] “2020 Cyber Security Statistics.“ PurpleSec LLC, 2020, purplesec.us.
[3] “Tax Scams/Consumer Alerts.“ Internal Revenue Service, irs.gov.
[4] The numbers refer to internet crimes reported to the governmental Internet Crime Complaint Center.
Methodology of evaluating loss amounts: FBI IC3 Unit staff reviewed for validity all complaints that reported a loss of more than $100,000. Analysts also converted losses reported in foreign currencies to dollars. The final amounts of all reported losses above $100,000 for which the complaint information did not support the loss amount were excluded from the statistics.
[5] “Cybersecurity Examination Sweep Summary.“ Office of Compliance Inspections and Examinations, 03-Feb-2015, sec.gov.
[6] “Schwab Bank Online Security.“ Charles Schwab Bank, schwab.com.
[7] “Our Security Procedures.“ TD Ameritrade, tdameritrade.com.
Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only.
Hyperlinks to third-party information are provided as a convenience and we disclaim any responsibility for information, services or products found on websites or other information linked hereto.