Gordon Law Partner tax attorney and CPA Andrew Gordon sits down with Wealth host Brad Smith to break down a trend in financial scams and what people need to know to keep their finances safe.
The Federal Bureau of Investigation (FBI) tells the public to “take a beat” in its nationwide campaign to spread awareness and prevent people from falling victim to financial scams.
Financial scams are “something that we get calls for, unfortunately, every single day,” Gordon tells the Wealth team. He says, “There is a $1 billion-plus scam that's going on, and it's generally referred to as a pig [butchering] scam.” He explains that there are a few common characteristics seen in this scam, including someone reaching out on social media with the initial message presenting as a bid for friendship or romance without any mention of finances.
“Over time, they will show you that they've been able to make a lot of money, often with a crypto or other related financial investment, and urge you to participate as well.”
Gordon says these scams will initially "look like you are making more and more money, but this is all fake. It's referred to as a pig slaughter because they're trying to fatten you up. They're trying to have you put more and more money into the scam.”
Gordon advises people to never take these financial promises "at face value" if you are reached out to on social media or digital messaging.
For those who have experienced a financial scam, Gordan says there are some tax deduction options that can help recover some losses. Watch the video above to find out more.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Naomi Buchanan.