Three Simple Steps to Protect Your Family From Scams and Fraud Risks

First, we need to face reality. Even Sam Altman, CEO of OpenAI, recently stated that as AI voice cloning increases fraud risks to banks using voice print authentication will increase rapidly. So, a couple of seconds of your voice online can be easily "cloned" into a version that could trick you, and outdated systems. Source: AP News interview with Sam Altman (Dec. 2023)

That said, larger data supports the same issue. According to the Federal Trade Commission (FTC), over $12.5 Billion was lost to fraud by consumers in 2024, a 25% increase from 2023. The FBI's Internet Crime Complaint Center estimated losses in 2024 to exceed $16 Billion, noting the largest percentage of those affected were older adults.

Every year millions of families are scammed out of large amount of money.

Fortunately, there are very low-cost and high-impact options to dramatically lower your family's risk. If you are reading this, consider spending an hour this week to implement the below list and to pass the list along to family members:

1. implement a family "code word," and create a plan to respond to the AI voice call for help if someone has been victimized by a voice cloning scheme,

2. place a freeze on your family's credit through all three of the major credit reporting agencies (Equifax, Experian and TransUnion),

3. obtain an IRS Identity Protection PIN. All of the above actions can be done without investing a dollar in subscriptions or installing a new app. As a result, you'll be much safer once you complete them.

1) Create a family "code word" and a response plan to protect against AI voice cloning schemes

As noted earlier, criminal voice cloning is happening now and being used to convince victims' families to send money for what appears to be a "family emergency." Because the audio may appear to be a member of the victim's family, the call sounds legitimate. Mr. Altman's warning is directed at banks, but households are the front-line defense.

Here's how you can do it:

• Choose a "code word" only known to your immediate family members. If someone contacts you asking for money or access to sensitive information, ask them to say your "code word" prior to proceeding further.

• Hang up and immediately dial a phone number you have previously saved, rather than the number that contacted or texted you.

• Do not pay secretly. When urgency, secrecy, and requests for gift cards, wire transfers, or cryptocurrency are all part of the conversation, STOP and verify.

  This provides a temporary delay during which you will have time to think and not allow adrenaline to make the decision for you. It is easy, inexpensive and highly successful when all family members use it.

2) Freeze your credit with Equifax, Experian, and TransUnion

A credit freeze prevents new creditors from accessing your file and thus stops most types of new account fraud. It does not cost anything to freeze or unfreeze your credit and will not negatively affect your credit score. You must perform this action individually with each of the three credit reporting agencies.

How to do it:

• Freeze your credit with all three (Equifax, Experian, and TransUnion).

• Keep a record of the passwords/PINS provided by each agency and store them with your important documents.

• Apply for a loan or rent an apartment? Then temporarily "unfreeze" your credit for 24 to 48 hours and then freeze again.

• Parents/Caregivers: You can also freeze a child's credit to prevent new accounts from being opened in their name.

Why it matters: If your wallet is stolen or if your information is compromised in a breach, a freeze will stop thieves from opening a new account in your name.

3) Obtain an IRS IP Pin to block unauthorized access to your tax return

An IRS Identity Protection PIN is a 6-digit number issued annually by the IRS to confirm that you are the person filing your tax return. Once you enroll, the IRS will provide you with a new PIN each year. If you attempt to file your tax return without your current PIN, the IRS will reject your return. Anyone with an SSN or ITIN who can prove their identity can enroll, including spouses and dependents.

How to do it:

• Log in to your existing IRS Online Account or create one if you do not currently have one and submit a request for an IP PIN.

• Save your PIN safely. Prior to filing your tax return every January, retrieve the new PIN.

• If you file jointly or claim dependents, each person should obtain his/her own PIN.

  
  

Why it matters: Many times, refund fraud occurs before you even realize it. An IP PIN closes that loophole.

A quick checklist (to print out and put on the refrigerator).

• Choose a "code word" that will be used as a password and come to an agreement about the "call-back" process. Discuss with aging parents and college students.

• Set a free credit freeze at Equifax, Experian and Trans Union and write down your pin numbers.

• Sign-up for an IRS IP Pin and store it securely. Only share your IP Pin with the IRS and your tax professional.

• Turn on transaction notifications on every single one of your bank/credit card accounts and check your account statements once each month.

Helping neighbors

The above-mentioned actions build upon one another. The use of a "code word" stops the "this is just like dad's voice" scenario. Credit freezes stop the creation of fraudulent new accounts. IP Pins prevent the filing of fraudulent income tax returns. Although the national statistics are moving in the wrong direction, they do not have to move in that direction in our neighborhood, if we integrate these habits into our daily routine.