Foiling the Financial Fraudsters: Protecting Manufacturing Business Owners and Executives

When it comes to financial scams, many assume only the less financially savvy fall victim. However, financial fraudsters often target those with significant assets, including business owners and executives in the manufacturing sector. Their success in separating you from your wealth can be alarming.

You're a Target

Affluent individuals are prime targets for financial crooks because, as famed bank robber Willie Sutton said, “that’s where the money is.” Consider these statistics:

• Cybercriminals stole the identities of 8.1% of individuals with $1 million or more.
• The affluent are 43% more likely to experience identity theft.
• Over a quarter of ultra-high-net-worth families have faced cyberattacks.
• High-profile fraud cases often involve the wealthy, such as the schemes by Bernie Madoff and Elizabeth Holmes.

Being successful in business doesn’t necessarily make you an expert at spotting scams. Studies show high-net-worth individuals are more likely to report being fraud victims compared to those with less wealth.

Be on Guard

You can take steps to protect yourself from financial fraud. Start by understanding the tactics criminals use to target your wealth and the damage they can cause.

Common Scam Methods:

1. Phishing and Ransomware Attacks:
2. Wire Transfer Fraud:
3. Account Takeovers:
4. Card-Not-Present Fraud:
5. Tax Scams:

Avoid Getting Scammed:

1. Check Your Basics:
2. Slow Down and Use Caution:
3. Verify Requests Independently:
4. Root Out Impersonators:
5. Separate Personal and Business Life:
6. Check In on Your Finances:
7. Ask for Help:
8. Consider Hiring Experts:

Conclusion

Many tactics to avoid scams involve personal behavior changes rather than advanced technology. Combining both approaches can be most effective. Remember, protecting yourself from financial criminals often depends on the actions you take—or don’t take—in your daily interactions.

Investment Advisory Services offered through Brookstone Capital Management (BCM) LLC, a Registered Investment Advisor. Silvertree, LLC and BCM are separate companies. This is not an investment, tax, or legal recommendation or a solicitation to become a client of the firm.