Being a fiduciary doesn’t just mean managing portfolios—it means helping protect your clients from threats they may never see coming. Today’s scams are increasingly sophisticated, emotionally manipulative, and convincingly real.
Here’s what happened to one client, and what you should be doing to prevent the same thing from happening under your watch.
The Story That Sounded Convincing
A client reached out after withdrawing funds from an IRA held outside our firm. She told us she was investing in a short-term opportunity through her company’s senior leadership and asked about avoiding taxes using a 60-day rollover. We discussed her options and began tracking the window.
Around Day 50, she requested to liquidate a large account with us. She said the money was needed for a “federal background check” at her credit union. That raised a red flag. Per firm policy, any request over $10,000 requires a phone call from the advisor on record using the number in our CRM.
When we called, her story quickly began to unravel.
A Scam Built to Fool Anyone
She revealed she’d been contacted by individuals claiming to be with the Department of the Treasury and Homeland Security. They told her she was linked to a drug and money laundering operation. They told her not to tell anyone. They told her to move her money and buy gold bullion, which she did.
The scammers followed through with convincing touches: spoofed government phone numbers, fake “Series B” savings bonds (discontinued in 1937), and AI-generated photos of themselves with government officials.
Even after we raised concern, she wasn’t convinced. It took a three-way call with the FBI and Homeland Security to confirm it was a scam.
By then, she had lost $2.5 million.
Prevention Starts with Process
This client is not someone you’d expect to fall victim. She manages a $100 million division at a major firm. But no one is immune from the emotional tactics and technical tools scammers use today.
This experience is a reminder to:
- Educate clients regularly on modern scam tactics
- Maintain and follow strict internal review protocols
- Require verbal confirmation for large or unusual requests
- Ensure trusted contacts are on file
Fraud Protection is Part of the Job
We can’t prevent every scam, but we can reduce the risk through proactive communication and firm-level processes. Your clients will appreciate knowing you have systems in place to protect them—even from themselves.
Scams like these are only getting more advanced. Make sure your safeguards are too.
