A Financial Fraud Wake-Up Call
A New York Times article that was published last year, How One Man Lost $740,000 to Scammers Targeting His Retirement, detailed the alarming rise of retirement savings scams, and this trend continues to target unsuspecting Americans. The loss of savings and investments is staggering, as scammers are using increasingly sophisticated techniques to commit these crimes. They’ve managed to steal billions of dollars, and the problem shows no signs of slowing down.
One of the most concerning parts of these scams is that many retirees don’t report them—either because they’re embarrassed or simply don’t know where to turn for help. According to a 2024 AARP survey, an alarming 78% of those surveyed didn’t report the crime to local law enforcement, and 89% didn’t inform the FBI or FTC.
While we might hear these stories and think it couldn’t happen to us, the fact is that financial fraud is more common than we may realize. It may even be happening to your loved ones without your knowledge due to the victims’ hesitance to report this type of crime.
Why Is This Fraud Happening?
Scammers have become incredibly good at what they do. The sophistication of these schemes has grown along with more electronic communication and remote banking. This can make it easier for fraudsters to trick people into wiring large sums of money or sharing sensitive information. One of the most troubling aspects is how they prey on the trust of retired individuals, who often have significant savings but may not recognize the signs of a scam.
This brings us to the important point that financial fraud doesn’t happen in the abstract. These stories are all too real. Sadly, it can hit close to home, and it recently did for us. One of our long-time clients, whom we’ll call Joe, is a widower in his late 70s and fell victim to a scam costing him $50,000. Joe gave us permission to share his story anonymously in the hope that it might help others avoid falling into a similar trap.
Joe’s Story and the Anatomy of a Scam
Joe was using his computer at home one morning when a pop-up window appeared on his screen. It looked official and got his attention by stating that a virus had been detected on his system. He was alarmed and started to follow the instructions.
The pop-up window directed him to call a specific number for Apple support. Joe dialed the number and was greeted by a friendly-sounding person. The fraudster, whom we’ll call Frank, claimed to be from Apple Support and reassured Joe that the virus could do serious harm to his computer and his finances.
For the next several hours, Frank kept Joe on the phone, walking him through what seemed initially like a standard troubleshooting plan. However, as the conversation went on, the tone became increasingly suspicious. When Joe said he needed to check with his daughter before continuing, Frank became aggressive and almost threatening. He insisted that Joe’s savings were at risk and convinced Joe that the only way to prevent additional damage was for Joe to immediately wire his funds to a “secure” account, claiming this was part of their fraud protection process.
The scam was getting more elaborate, but Joe felt pressured and agreed to keep going. He went into his local bank branch to initiate the transfer. An alert bank employee noticed something wasn’t right and raised concerns, but Frank was one step ahead, most likely having pulled off this scam many times. He had coached Joe on what to say to the bank employee and her manager, effectively neutralizing their attempt to stop the transfer. Despite the bank employees’ best efforts, Joe transferred $50,000 from his account into the scammer’s hands.
It wasn’t until Joe spoke with his daughter later that afternoon that he realized what had happened. She was furious, and Joe knew that he had just made the biggest financial mistake of his life. They immediately called the bank, but the funds had already been wired, so there was no way to reverse the transaction.
When Joe called me to tell me what happened, I was heartbroken. There wasn’t anything we could do to get his money back, but I was grateful he agreed to share his story, which will hopefully prevent others from making similar mistakes.
Why Do These Scams Happen?
Joe’s story, unfortunately, is becoming frustratingly more common. Fraudsters frequently use these tactics to manipulate people into giving up their hard-earned savings. The scammers can be very convincing, playing on people’s fears, confusion, and even their goodwill. The strategies they use are carefully calculated and designed to appear to be legitimate, which makes it difficult for even savvy individuals to distinguish between a legitimate request and an attempt to steal from them.
These scams are so effective because they exploit psychological triggers like a sense of urgency, fear of losing money, and a desire to be helpful. These criminals are master manipulators and know exactly how to strike when someone’s guard is down.
Fortunately, you can take steps to protect yourself and your loved ones from falling victim to similar scams:
1. Be Wary of Any Unsolicited Contact
Whether you get a phone call, email, or pop-up computer message, always be cautious when someone contacts you out of the blue. If you receive an unsolicited message purportedly from a company or organization, don’t immediately respond. I have a personal policy of not answering my cell phone unless the number is in my contacts list. If it’s a legitimate call, I will listen to the voicemail and return their call. If you’re ever unsure, you can always hang up or close the message and contact the company directly using a verified phone number or email address from their website.
2. Don’t Give Your Personal Info Over the Phone
Legitimate companies won’t ask for sensitive information like your Social Security number, bank account details, or passwords over the phone, especially during an unsolicited call. If you’re ever in doubt, you can hang up and call the company’s customer service number listed on their website.
3. Set Up Multi-Factor Authentication
Always enable multi-factor authentication (MFA) when available for your internet accounts to add an extra layer of protection. After entering your password, you are required to verify your identity through a second method, such as texting your cell phone or app notification. This is available for your Fidelity accounts and likely for all the financial institutions you use.
4. Educate Your Family and Yourself
Fraudsters often target older Americans, but this doesn’t mean younger family members are immune. It’s a good idea to educate everyone in your household about the dangers of online scams and teach them how to recognize any suspicious signs. Make sure your loved ones know the potential red flags and how to report any fraud attempts.
5. Listen to Your Instincts
If something feels off or just not right, it probably is. Scammers are experts at creating a sense of urgency and trying to push you into making quick decisions without thinking them through. Take a step back, talk to someone you trust, and give yourself time to consider your options. If they try to prevent you from talking with someone you trust, it’s very likely a scam.
For more detailed advice on how to protect yourself, you can read this article from Rethinking65: How to Avoid Online Scams. The article outlines the steps you can take to safeguard your personal information, along with actions to take if you’ve already fallen victim to a scam.
Conclusion: Protecting Yourself from Financial Fraud
While Joe’s story is extremely upsetting, it also serves as a valuable reminder of the importance of staying vigilant against financial fraud. Criminals are becoming more sophisticated every day, and it’s critical that we cultivate the knowledge and tools to protect our savings and investments. By taking these proactive steps to educate yourself and your loved ones, using secure online practices, and trusting your instincts, you can safeguard your finances.
For those interested, Joe suggested a movie called The Beekeeper that, in a very dramatized Hollywood fashion, shows a hero avenging a similar scam on behalf of a kindly victim.
While we certainly don’t recommend the “revenge” approach, it’s a reminder in pop culture that these scams are out there and can happen to anyone. Our main goal is to help you stay vigilant and informed so you never have to face a situation like that (If you’re curious, you can check out the movie trailer below, but fair warning that it’s a bit on the action-packed side!).
If you have any questions or concerns, don’t hesitate to reach out, as we’re here to help you navigate these challenges. Stay safe, stay vigilant, and take the above actions to protect what you’ve worked so hard to build.
We’re Moving—Just One Floor Down!
After 21 years in our current suite, we’re excited to announce a small but meaningful change: we’re relocating this Friday one floor down in the same building. The reason? Our building’s owner found a new tenant who wants to take our entire current floor, plus the floor above, and they’ve kindly offered us a great new space just one level below.
Nothing else is changing except the suite number (we’ll be in Suite 1220 instead of 1320 now), and we’ll have a bit more room, including a dedicated conference room and space for future growth. For additional details, keep an eye out for an email from Bob Kargenian later this week.
Social Security COLA
I wrote about the Social Security Cost of Living Adjustment (COLA) in last month’s quarterly report cover letter, and I’m including a modified version here for anyone who missed the original. The most recent Social Security COLA estimate for 2026 is 2.7%, based on recent inflation and the Consumer Price Index (CPI) data.
The 2025 Social Security COLA was 2.5%, so the current 2.7% estimate for 2026 is pretty close to last year’s. The final 2026 COLA number may change based on the average inflation rate during the current quarter. Although the increase is welcome news to Social Security recipients, it will be offset somewhat by an increase in monthly Medicare Part B premiums, which are expected to increase $21.50, from $185 to $206.50.
Starting June 7, 2025, the Social Security Administration (SSA) requires a Login.gov or ID.me account to access your online Social Security account at https://www.ssa.gov/. This issue came up recently during a call with one of our clients. His bank account was hacked, and he needed to log into ssa.gov to update his new bank account information for his Social Security direct deposit.
The last time our client logged into the Social Security website, he used his Social Security username and password, so I helped him set up his new login credentials. If you need to do the same, click “Sign in” at the top of the SSA website and then “Create an account with Login.gov” or “Create an account with ID.me.” You can choose to create an account with either one — you don’t need login credentials from both.
Login.gov was created by the US government to provide users with a single login for accessing federal websites. ID.me is similar but operates as a private identity verification service that partners with both government and private organizations. If you have already set up an account with Login.gov or ID.me, you won’t need to take the actions mentioned above. When I set up my Login.gov access on the SSA website, it took about 5 minutes, including the time to configure 2-factor authentication using my cell phone texts.
Portfolio Allocations
On July 22, the day that Bob Kargenian wrote the last monthly update, we reduced our equity exposure from 80% to 60%. On August 11, one of our investment models went positive, and we increased exposure back to 80%, which is where things stand today. Our high yield bond fund risk model still remains on its May 2 BUY signal.
Graduations and Anniversaries
One of the most rewarding aspects of being a financial planner is celebrating life’s milestones like graduations and anniversaries with our clients. In 2025 alone, TABR has clients celebrating 20th, 25th, 30th, 35th, 40th, 45th, 50th, and 60th anniversaries.
There are actually two TABR couples celebrating their 60th anniversary this year, and one of those couples happens to be my parents. (The anniversary card I got them summarized the zeitgeist in 1965, the year they were married, including hit songs, fashion trends, and consumer prices. My nieces and nephews were incredulous that postage stamps cost $0.05 in 1965 versus $0.78 today, and that’s a great inflation wake-up call for all of us).
Below is a photo from last week’s anniversary celebration dinner with our 19 family members, including my significant other, Izzie, her daughter, Mackenzie, and son, Evan, and my parents’ three great-grandchildren.
In other family news, my daughter, Audrey, graduated from high school on June 5 and will be starting at Orange Coast College this month to study kinesiology and possibly sports medicine or physical therapy eventually. Below is a photo from her graduation with my son, Conrad, who will be starting his junior year in high school this month. I also couldn’t resist putting a photo from Audrey’s 18th birthday father-daughter trip to Yosemite this spring.
As summer winds down, it’s a good time to pause and take stock—not just of markets and milestones, but of the steps we can take to protect ourselves and those we care about. From staying vigilant against scams, to celebrating graduations and anniversaries, to our office move, there’s a lot going on, and we’re here to help you navigate it all. As always, please call or email us if you have any questions.
Best regards,
Steven W. Medland, MBA, CFP®
Partner
TABR Capital Management, LLC (“TABR”) is an SEC registered investment advisor with its principal place of business in the state of California. TABR and its representatives are in compliance with the current notice filing and registration requirements imposed upon registered investment advisors by those states in which TABR maintains clients. TABR may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements.
This newsletter is limited to the dissemination of general information pertaining to our investment advisory/management services. Any subsequent, direct communication by TABR with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of TABR, please contact TABR or refer to the Investment Advisor Disclosure web site (www.adviserinfo.sec.gov).
The TABR Model Portfolios are allocated in a range of investments according to TABR’s proprietary investment strategies. TABR’s proprietary investment strategies are allocated amongst individual stocks, bonds, mutual funds, ETFs and other instruments with a view towards income and/or capital appreciation depending on the specific allocation employed by each Model Portfolio. TABR tracks the performance of each Model Portfolio in an actual account that is charged TABR’s investment management fees in the exact manner as would an actual client account. Therefore the performance shown is net of TABR’s investment management fees, and also reflect the deduction of transaction and custodial charges, if any.
Comparison of the TABR Model Portfolios to the Vanguard Total Stock Index Fund, the Vanguard Total International Stock Fund, the Vanguard Total Bond Index Fund and the S&P 500 Index is for illustrative purposes only and the volatility of the indices used for comparison may be materially different from the volatility of the TABR Model Portfolios due to varying degrees of diversification and/or other factors.
Past performance of the TABR Model Portfolios may not be indicative of future results and the performance of a specific individual client account may vary substantially from the composite results above in part because client accounts may be allocated among several portfolios. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable
For additional information about TABR, including fees and services, send for our disclosure statement as set forth on Form ADV from us using the contact information herein. Please read the disclosure statement carefully before you invest or send money.
A list of all recommendations made by TABR within the immediately preceding one year is available upon request at no charge. The sample client experiences described herein are included for illustrative purposes and there can be no assurance that TABR will be able to achieve similar results in comparable situations. No portion of this writing is to be interpreted as a testimonial or endorsement of TABR’s investment advisory services and it is not known whether the clients referenced approve of TABR or its services.