Technology can be a great help, but it can also pose a risk to our personal information and privacy. As technology evolves and becomes more sophisticated, so do the types of scams we get exposed to. It’s becoming increasingly hard to discern between legitimate communication and nefarious hackers trying to steal personal information and/or money.

Often, though, it’s not technology but social engineering that allows criminals to convince victims to provide their personal information. Social engineering is the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.

It could be something as simple as receiving an email saying that some of your credit card information has been compromised and you need to contact the bank to verify your information immediately. Or you get an email or call that your grandkid is in jail and needs bail money as soon as possible. In some cases, the cybercriminals send you an email telling you good news — you just “won” the Publisher’s Clearing House Sweepstakes, and they need your bank account number to wire you the money. Or maybe you get a pop-up message that your computer has been compromised, and you need to reach out to ‘tech support’ immediately. These are all examples of cyber-scams to steal your information and money.

Attend Our Live Event on January 22, 2022

We are here to help you. On Saturday, January 22, 2022, we are hosting a live event to discuss how you can protect yourself. Our featured speaker is Jeff Lanza, a retired FBI Special Agent and cybersecurity expert. There is no charge to attend the event; however, reservations are required.  Please contact our office at (440) 974-0808 or email carverfinancialservices@raymondjames.com to attend.  This will also be recorded and on our website so you can still benefit from the information, even if you cannot attend live.

The Costly Toll of Cyber Scams and Fraud on Americans

Fraud and phishing are common problems facing people across the globe. According to a study conducted by the Centre for Counter Fraud Studies at the University of Portsmouth, people who are in the 65-to-74-year-old age range are 54 times more likely to be victims of fraud or computer scams than they are to be physically robbed.

Newly released data show that the Federal Trade Commission received more than 2.1 million fraud reports in 2020 alone. The same data found that imposter scams — when someone tricks you into sending money to them — were the most common types of fraud reported to the agency, with one in five individuals reportedly falling victim. Online shopping was the second-most common fraud category reported by consumers, elevated by a surge of reports in the early days of the COVID-19 pandemic. Internet services; prizes, sweepstakes, & lotteries; and telephone & mobile services rounded out the top five fraud categories. Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019.

Ways to Protect Yourself

To protect yourself from being taken advantage of, it’s good to learn about the different types of scams out there. Because so many of these scams are now occurring on the internet, it’s important to learn good “cyber-hygiene.” Here are some steps you can take to protect yourself:

• Protect your passwords.
• Avoid clicking links or opening email attachments from people or brands you don’t know.
• Double check to make sure links don’t have odd spellings. For example, you may get an email saying someone you know tagged you in a “Faceboook Photo,” only to see later “Facebook” was spelled with three o’s, and this was actually a phishing scandal. Poor grammar is often a clue that an email is a scam, too.
• Never provide personal information in response to an unsolicited email, robocall or robotext. In fact, it’s a good practice not to provide personal information digitally in general.
• Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action.
• Trust your gut — if something seems a little off, then it probably is.

Consider signing up for an ID theft-protection service such as Identity Guard^® or Life Lock™. With these protections, you will be notified if someone attempts to take out credit in your name or there are other potential compromises of your information.

Also consider “freezing” your credit with the major reporting agencies. To freeze your credit, which is different from locking your credit, contact each of the three major consumer credit bureaus — Equifax, Experian and TransUnion — and request a credit freeze. You can easily freeze your credit with Equifax on their website; their customer care number is 1-888-298-0045. To freeze your credit at Experian, you can visit their online Freeze Center or call 1-888-EXPERIAN (1-888-397-3742). TransUnion allows you to place a credit freeze online. You can also add a freeze via the automated phone system (or opt to speak to a live agent) by calling 1-888-909-8872.

Carver Financial Services Has Your Back

From technological safeguards to employee policies and operating procedures, we maintain constant vigilance where your privacy is concerned.

Carver Financial Services recognizes the trust you place in us when you disclose personal information. Maintaining that trust by ensuring that your information is secure is a core tenant of our business. We proudly work with Raymond James, who has a dedicated Privacy Office committed to the privacy and protection of the personal information you have entrusted to us.

Both Carver Financial and Raymond James take very proactive measures to protect you. From technological system monitoring 24 hours a day, 365 days a year to utilizing only the best protection technology including encryption, virtual private networks, penetration/vulnerability testing, and the latest firewall and antivirus technology.

The protection of your personal information is a top priority at Carver Financial Services. You can rest assured that your information is safe with our team of talented individuals. Ultimately, though, you must also be vigilant about protecting yourself against the potentially damaging social-engineering scams prevalent in the digital age.

Randy Carver, CRPC^®, CDFA^®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Randy has more than 32 years of experience in the financial services business. Carver Financial Services, Inc. was established in 1990 and is one of the largest independent financial services offices in the country, managing $2.3 billion in assets for clients globally, as of December 2021. Randy and his team work with individuals who are in financial transition as a result of divorce, retirement, or the sale of a business. You may reach Randy at randy.carver@raymondjames.com.

The information contained in this post does not purport to be a complete description of the securities, markets or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

We are finding over the last few months that an increased number of emails have been going to Junk folders, as screening algorithms have become more sensitive. We are committed to providing you with timely and appropriate responses to emails and phone calls.

Our office has a policy of responding to all client emails within 24 hours. If someone is out of the office, you will receive an out-of-office reply immediately. If you do not see a reply, it is likely that it went to your spam or junk folder.

If you do not see a reply to your email within 24 hours or an immediate out-of-office message, please check your Spam/Junk folder and/or phone our office.

To prevent emails from our office from inadvertently going to your junk folder, you will want to consider making all emails from “@raymondjames.com” part of your safe sender list. You can see a brief tutorial on preventing email from going to junk by clicking here.

We are committed to providing the highest level of service, including a timely (24 hour) response to emails and calls. Please phone our office with any questions on your email or if we can otherwise be of service. We appreciate your communication and look forward to connecting with you.

The time for a lifeboat drill is not when the ship is sinking, it’s for when the ship is docked, steady, and safe. There are two reasons lifeboat drills are conducted; first, to familiarize yourself with what to do in case of an emergency. The second, and perhaps more important, is to make sure you are psychologically prepared for when disaster strikes. Pilots, astronauts, and many other professionals in high-risk industries do the same. Practicing good habits and preparing mentally for take-off, will ensure you are physically and mentally prepared to focus on what needs to be done in any situation.

While there may not be a physical danger to investing, there is financial danger. On average, the stock market experiences a correction (more than a 10% drop) every other year. Which means, as an investor, you will most likely experience a correction or crash at one point or another. That’s why it’s so important to do your own version of a lifeboat drill so you’re mentally prepared for when the inevitable correction occurs.

There is a plethora of things to consider when doing your drill, here are a handful of things we recommend, to help get you started:

1. Calculate how much cash-in-hand you need to ride out the inevitable market corrections.
2. Figure out your ideal buy-in levels for best-in-breed investments trading at discounted levels.
3. Assess your risk tolerance when buying investments.

One of the most important components to a successful investment strategy is being prepared; for successful long-term investment planning; for potential financial setbacks; to invest in new opportunities; and, of course, to weather uncertain market conditions.

Being able to keep sight of your investment objectives during difficult times is often a determining factor in long-term success. Our team has the experience to help you stay prepared for whatever may lie ahead.

During times of turbulence and volatility, it is more important than ever for investors to work closely with financial professionals they trust to ensure their expectations and investments align with long-term plans.

Three Healthy Habits for Long-Term Investment Success

1. Stay the course. Do not panic and pull out of the market during a downturn. The rallies you miss could significantly hurt your overall return.
2. Take advantage of the downturns. By viewing market declines as buying opportunities, you can significantly enhance your long-term return potential when the market rebounds.
3. Diversify your portfolio. Rather than trying to pick a single investment type and timing the market, diversifying across asset classes may decrease your risk and enhance long-term return potential.

Again, before making any investment decisions, we recommend speaking with a financial professional to reassess your financial situation and future goals. Keep in mind these strategies do not ensure profit and do not protect against loss.

Another benefit to running market drills when things are smooth and steady in your portfolio, is it will help you resist being a market timer. In short: market timing simply doesn’t work. By trying to time the market, you potentially miss out on rallies that could substantially improve your overall return and long-term wealth. You may incur expense and tax consequences that you would not otherwise have and ultimately could reduce return while increasing expenses. Trying to time the market is an understandable instinct, but it’s one that you need to control with practice.

Time in the market is far more important than timing the market. However, staying the course when confronting difficult markets doesn’t mean buying and holding passively. Using the drill-points listed above will help teach you how to use corrections to rebalance your portfolios and take advantage of opportunities such as tax swaps.

Ultimately, each person’s needs and objectives are different. This is why it’s important to customize your strategy to your situation. The best way to do this is to talk to a financial professional who can put together a strategy tailor-made to your individual lifestyle. We recommend against using robo-platforms and firms that have a set model for all clients. Portfolio performance is maximized when your unique objectives are taken into account.

At the end of the day, every market cycle has both up days and down days. Often, a few very good days account for a large part of the total return. Surprisingly, these good days are often in the middle of some of the worst ones. Staying invested ensures investments will be “in” the market on the good days. Unfortunately, consistently predicting which days will move the market up or down, though, is virtually impossible–not to mention potentially costly. For example, a hypothetical $10,000 initial investment in the S&P 500 Index held over the entire period of January 1, 1998 through December 31, 2007 would have grown to $17,756. Missing the 15 best days would reduce the ending value of that investment to $9,238 and missing the 25 best days over that 10-year period would result in an ending value of $6,539 (a loss of more than 34%). (Source Dalbar.com/Blackrock)

We believe that you should have a plan and then do a “lifeboat drill.”  When markets inevitably decline, you can benefit rather than get hurt. Having worked with clients for more than three decades, I have seen the value in being a prepared investor and the devastation that occurs when someone is unprepared.

Our team has more than 250 years combined experience in helping clients develop a wealth management and planning strategy to benefit from good markets and bad. We are here to develop a customized plan based on your personal needs, goals and vision. We expect some very turbulent times ahead – will you be prepared?

Please feel free to contact me personally, or any one of our talented team members with any questions or concerns. There is no cost or obligation when it comes to helping you get the answers you need. We are here for you; your vision is our priority.

Randy Carver, CRPC^®, CDFA^®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Randy has more than 32 years of experience in the financial services business. Carver Financial Services, Inc. was established in 1990 and is one of the largest independent financial services offices in the country, managing $2.3 billion in assets for clients globally, as of November 2021. Randy and his team work with individuals who are in financial transition as a result of divorce, retirement, or the sale of a business. You may reach Randy at randy.carver@raymondjames.com.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. The information contained in this report does not purport to be a complete description of the securities, markets or developments referred to in this material. The information has been obtained from sources considered reliable, but we do not guarantee that the material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions expressed are those of Randy Carver and not those or RJFS or Raymond James. Expressions of opinion are as of this date and subject to change without notice.  Links are being provided for information purposes only. The S & P 500 index is comprised of approximately 500 widely held stock that is generally considered representative of the US Stock Market.  It is unmanaged and cannot be invested in directly. Past performance is no guarantee of future results. Investing involves risk and you may incur a profit or less regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.