If you’ve ever received a suspicious phone call, you’re not alone. Here are two very real-sounding phone calls that could have cost clients thousands of dollars and what to do if it happens to you.

Scam #1: Impersonating the IRS

Five years ago, I received a call from the Manager of the Heights Branch of a local bank on behalf of a client. It was an unusual call. The Manager was letting me know that she had contacted the police on behalf of our client, and they were on their way to her residence. The client asked that I meet them there. That was a first for me!

Here’s the back story.

The client had received a phone call from an IRS agent. He explained that her late husband had earned income that he failed to report on their tax return (which she signed). The taxes, penalties and interest were now more than $15,000. She could settle this by paying the balance and the whole thing would go away.

This is a highly educated woman. Yet she had never directly dealt with tax matters. Her husband had managed the business-related issues in their household. She panicked. She uttered the only thing that came to mind, “I need to contact my financial advisor.” He responded, “You could do that but at that point I’ll be unable to help you make this simply go away.” “Okay, what do I need to do?” she replied.

He provided her with the information for wiring the balance owed to settle the debt. She went to her bank branch to take care of the wire. The Branch Manager, who is required to sign off on the wire, was out. When she returned the teller took the form to the manager and asked for her signature. She immediately smelled a rat. She called the client and asked her to tell her more about the situation. The more she explained, the more skeptical the Branch Manager became. More questions yielded no good answers. At that point, the Branch Manager shared her suspicions and recommended they call the police. The client asked if she would call me to explain what was going on. She wanted me to meet the police officer with her.

All ended well. The police officer was so kind and gracious. He took the information and filed a report. The alert Branch Manager had saved my client a quick $15,000! 

Moral to this story? IRS Agents don’t call you. IRS Agents send certified letters or show up with badges and guns.

Scam #2: Impersonating the DEA

Now run this forward to this week. A client called the office for Kristina. She was in a meeting with another client, and he asked to speak with me. This client, a retired physician, had received an unnerving call from a DEA agent. The doctor was told that his name was used to rent a vehicle which was had been stopped in Florida. It also contained a large quantity of drugs. The agent then had our client verify his social security number and explained that his bank account has also been compromised.

To make matters worse, the agent urgently explained that our client is now a party in this case and subject to the penalties of law. He is now at risk of being arrested, prosecuted, imprisoned and as a physician, subject to having his DEA registration revoked. He then begins inquiring about his other financial resources, which could be at risk.

Our client told the agent that he needed to contact his attorney. The agent warned that if he spoke to anyone else, their arrangement would be terminated. He asked to put him on hold so he could confirm a deal with his supervisor. While on hold, our client’s wife asked what was going on. He explains to her the nature of the call and what had happened. Ten minutes later the agent came back on the phone as says, “I told you not to tell anyone. I heard you telling your wife about our conversation.”

After the call ended, the client called our office to explain what has happened and get our advice. The more he talked the more I recognized the pattern. I said, “I don’t think this is legitimate. I think you’re being conned.” I immediately called Fidelity and put restrictions on their accounts to protect them. The client called the DEA and learned more about the fraud.

Moral to this story? DEA Agents don’t call you. DEA agents show up with badges and guns and break down your door.

This is a nationwide fraudulent scheme. They are particularly preying on physicians. You may recall news of the Arkansas Medical Society data breach in 2018. Contact information is readily available. The best deterrence against these bad actors is awareness and caution. Anyone receiving a call from a person claiming to be with DEA should report the incident to the FBI’s Internet Crime Complaint Center IC3. 

What to do if this happens to you

Reporting scam calls will help federal authorities find, arrest, and stop the criminals engaged in this fraud. Impersonating a federal agent is a violation of federal law, punishable by up to three years in prison. Aggravated identity theft carries a mandatory minimum sentence of two years in prison plus fines and restitution. Here are two ways to take action in the event that you receive a scam phone call:

• The Federal Trade Commission provides recovery steps, shares information with more than 3,000 law enforcement agencies and will take your report. 
• In the event you have given personally identifiable information like a social security number to a scam caller, you can learn how to protect against identity theft if you visit IdentityTheft.gov. 

At this point you may now be thinking, “What is this world coming to?” I realize this isn’t a warm and fuzzy message, but it’s important that you are aware of the active scams that threaten you. We say it each week, and we really mean it. As always, we are here for you. Please email or call your Advisor if you want to meet with us or talk by phone.

Rick Adkins, CFP®, ChFC, MBA

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