How to Protect Yourself from Financial Fraud: A Guide for High-Net-Worth Families

Fraud schemes targeting high net worth individuals have grown more sophisticated. Criminals spoof phone numbers, mimic advisor email addresses, and reference details pulled from public records to sound legitimate.

The best defense is simple: pause and verify before acting on any financial request, no matter how routine or urgent it appears.  

Why are high net worth individuals frequent fraud targets? 

Wealth is public information. Property records, business filings, and social media give criminals a detailed picture of who has assets worth pursuing — enabling personalized approaches that are far harder to detect than generic scams. HNW families also tend to have complex financial lives with more account activity, creating more surface area for impersonation. 

What are the most common types of financial fraud? 

Fraud can arrive through any channel — email, text, phone, mail, or in-person. Common schemes include:

• Impersonation fraud — someone posing as your advisor, bank, or the IRS
• Wire fraud — fraudulent instructions to redirect a transfer, often via a compromised email account
• Investment scams — unsolicited opportunities promising guaranteed returns
• Family emergency scams — calls claiming a loved one needs immediate financial help
• Tech support scams — alerts urging you to move money to a “safe” account
• Elder financial exploitation deserves particular attention. It is often committed by someone the victim knows and can go undetected for months.

What are the warning signs of a financial scam? 

Fraudulent requests almost always share several of these traits. If you notice more than one, treat the request as suspicious until independently verified: 

• Urgency — pressure to act immediately
• Secrecy — instructions to keep the request confidential
• Unusual payment methods — wires, gift cards, or cryptocurrency
• Changes to established instructions — new banking details or points of contact
• Guaranteed returns — promises that eliminate risk
• Requests for credentials — passwords, account numbers, or verification codes
• Unsolicited contact requesting immediate financial action

What should you do if you suspect a financial scam?

Pause and verify. Before sending money or sharing information:

• Call the institution or advisor directly using a number you already have on file — never reply through the original channel
• Verify any change to wire or payment instructions by phone, even if the request appears to come from a known email
• Give yourself time — legitimate requests can wait a day; fraudulent ones almost never can
• Contact your Smith + Howard Wealth Management advisor before initiating any unusual transaction

How does a wealth advisor help protect you from fraud?

An engaged advisor is one of the strongest safeguards a family can have. Because we know your financial patterns, we can often identify a suspicious request before it becomes a loss.

At Smith + Howard Wealth Management, that protection is reinforced by our coordinated approach across tax, planning, and investments — we can verify unusual activity against your full financial picture rather than reviewing it in isolation. We also help clients establish verification protocols in advance, such as callback numbers, family code words, or dual approval for large transfers.

When in Doubt, Call Us First

Fraud prevention doesn’t require expertise in the latest schemes. It requires one habit: pausing to verify before acting. A brief phone call costs nothing. Falling for a well-crafted scam can cost significantly more.

Frequently Asked Questions

What should I do if I’ve already responded to a suspicious request?

Contact your advisor and financial institution immediately. Many wire transfers can be recalled if reported quickly. Report the incident to the FTC at reportfraud.ftc.gov and, for wire or elder fraud, to the FBI at ic3.gov.

How can I protect elderly parents from financial fraud?

Establish a trusted contact on their accounts, review statements together regularly, and create a family verification protocol — such as a code word or callback rule — for any financial request.

Are email and text safe channels for financial requests?

No. Confirm every financial request by phone using a known number, even when the message appears to come from a trusted source. Compromised email accounts are one of the most common entry points in wire fraud.

Talk with an Advisor 

To discuss fraud protection or how a coordinated wealth relationship can strengthen your financial security, contact us today or call 404-874-6244.

Disclosures

Unless stated otherwise, any estimates or projections (including performance and risk) given in this presentation are intended to be forward-looking statements. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. The securities described within this presentation do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in such securities was or will be profitable. Past performance does not indicate future results.