No one is exempt from being a victim of fraud, not even a financial advice columnist. Charlotte Cowles, a writer for New York Magazine, had reported about the scam experiences of others but then she became a target.
In October of 2023, as Charlotte began her normal weekday routine, she received a phone call at about noon. The caller, who was professional and articulate, was contacting Charlotte about suspicious activity on her Amazon account. Charlotte was told that thousands of dollars of electronic equipment had been bought through her Amazon business account. When Charlotte told the caller she didn’t have a business account, the caller said, “it looks like one has been opened under your name.”
Next, Charlotte was introduced to a person who claimed to be an investigator from the Federal Trade Commission (FTC). This person established credibility by providing Charlotte’s address, social security number, and names of family members. The alleged FTC person indicated that Charlotte was being investigated for fraud, money laundering, and other criminal activity since her identity was stolen and being used by others. Dangers to Charlotte and her family were also mentioned.
While Charlotte thought she was being conned, there were no red flags such as asking for money or buying crypto. Next, she was told her assets would need to be frozen but first to withdraw enough to live on for a year ($50,000). The bank teller was surprised at the amount but completed the transaction.
She was next told that she would be met by a “CIA colleague” to make sure she and the money were safe. She was assured that the money would be deposited into a new bank account for her. The entire process took place over a six-hour period. Throughout the ordeal Charlotte felt increasing fear for herself and her family, which is why she followed the instructions of these alleged government officials. The next day she was to have an appointment at the social security office, which never occurred. This is when Charlotte realized she was conned.
She then contacted her brother, a lawyer, and filed reports with the police, FBI, and FTC. Charlotte contacted her bank to secure her other assets but won’t be getting her $50,000 back. She also ran anti-virus software to check for malware on her computer and changed the locks on her apartment door.
Despite her previous knowledge of scams and fraud, these circumstances seemed different and real to Charlotte. When telling her story publicly, people were shocked since Charlotte was far from the “typical” victim. Her online persona and easy access to personal information by scammers was the basis of the scam. Charlotte noted “the psychological aftermath of being scammed is devastating. It’s such a violating experience and a lot of people have real anxiety and paranoia afterwards. They also feel ashamed, so these scams are wildly under-reported as a result. But if telling my story helps lift the guilt and shame for others, that’s also very gratifying.” We are all vulnerable.
For additional information on this scam story, click here.
Teaching Suggestions
- Have students talk to others to learn about any experiences with fraud or scams.
- Have students create a podcast or visual proposal (poster or slide presentation) with suggestions for avoiding identity theft and scams.
Discussion Questions
- What actions might have been taken to avoid this scam?
- Describe actions you might take to avoid identity theft and scams.
Melissa Hart
Focus on Personal Finance, 2024 Release 