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Protecting Your Dental Practice from Financial Fraudsters
Summary:
As a successful dental entrepreneur, you've worked hard to build your practice and secure your financial future. However, financial fraudsters are increasingly targeting professionals like you with substantial assets. Even more alarming: These scammers are becoming increasingly adept at separating you from your hard-earned wealth.
As a successful dental entrepreneur, you've worked hard to build your practice and secure your financial future. However, financial fraudsters are increasingly targeting professionals like you with substantial assets. Even more alarming: These scammers are becoming increasingly adept at separating you from your hard-earned wealth.
The reality is this: Your expertise in dentistry and business acumen doesn't make you immune to financial scams. In fact, it may make you a more attractive target.
Let's explore some of the primary ways you might be targeted and the steps you can take to protect your dental practice and personal assets from these threats.
You're in the Crosshairs
Consider this sobering statistic: Affluent individuals, including successful dental practitioners, are 43% more likely to fall victim to identity theft, according to research by Experian and the Department of Justice.
The good news is that you can take proactive measures to shield yourself from financial scams and fraud. The first step is understanding the various tactics these criminals employ to target you and your dental practice's finances—and the potential damage they can inflict.
- Phishing and ransomware attacks. Phishing scams occur when criminals impersonate legitimate entities—perhaps even dental suppliers or professional organizations—using authentic-looking emails or texts. Believing the communication to be trustworthy, you might inadvertently share sensitive data. Ransomware, on the other hand, is malicious software that encrypts your files, potentially including patient records or financial data, and demands a ransom for their release. While ransomware has traditionally targeted large corporations, small businesses—including dental practices—are now the targets of 82% of these attacks. Criminals often view smaller practices as easier targets with less robust security measures.
- Wire transfer fraud. This scam involves tricking you into wiring money to criminals. They might pose as a trusted individual or organization, such as a dental equipment supplier, a business partner, or even a charity your practice supports. For example, a scammer might impersonate your office manager and email your bookkeeper, requesting a wire transfer for new dental equipment that doesn't actually exist.
- Account takeovers. This form of identity theft occurs when scammers gain unauthorized access to an online account—for instance, by setting up a legitimate-sounding public Wi-Fi network in a coffee shop near your dental practice and using it to capture usernames, passwords, and payment information.
SAFEGUARDING YOUR DENTAL PRACTICE
Armed with knowledge about these potential threats, you can take steps to protect your dental practice and personal wealth. Consider implementing these strategies:
- Strengthen your cybersecurity basics. Secure your practice's network, use strong passwords and multifactor authentication for all accounts, and install robust anti-malware and internet security programs. These fundamental safeguards should form the foundation of your defense strategy.
- Exercise caution and take your time. Many financial criminals create a false sense of urgency to pressure potential victims into quick action. Resist this pressure and take time to verify any financial requests thoroughly. Communicate this expectation to your dental practice staff, financial advisors, and other professionals you work with.
- Independently verify requests. If you receive an unsolicited email, text, or call from your bank, the IRS, or even a dental association claiming urgent action is needed, don't click on any provided links. Instead, contact the organization directly using official channels to confirm the legitimacy of the request.
- Be wary of impersonators. Fraudsters often create fake social media accounts to gather information they can use against you or your dental practice. Report any profiles falsely claiming to be you or your practice, verify friend requests before accepting, and avoid engaging with strangers online.
- Separate personal and professional communications. Use different email addresses for personal and dental practice communications. This can help contain a potential security breach in one area of your life from affecting the other.
- Regularly review your finances. Scrutinize your practice and personal financial statements for any unusual or unauthorized transactions. This includes credit reports and other financial documents. While this won't prevent fraud, it can help you identify and address it quickly.
- Don't hesitate to seek help. If you suspect you've been scammed or are concerned about a potentially fraudulent situation, don't let embarrassment prevent you from seeking help. Reach out to authorities, trusted advisors, or colleagues for advice and support.
- Consider professional cybersecurity services. Fraud prevention firms specializing in protecting high-net-worth individuals and businesses can develop customized strategies to safeguard your dental practice and personal wealth. Some services can also monitor social media for fraudulent accounts or posts that could threaten your practice's reputation or finances.
Note that many of these fraud prevention tactics rely more on personal behaviors than on sophisticated technology. While using both in tandem can be most effective, remember that keeping financial criminals at bay often depends greatly on your own actions and decisions in your daily interactions.
Tim McNeely
Advisor to Dental Entrepueriers
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This material is intended to be used for educational purposes and does not constitute a solicitation to purchase a security or investment advisory services. Some material on this site has been researched and prepared by BSW Inner Circle and its affiliates, CEG Worldwide, LLC and AES Nation, LLC. Timothy J McNeely has retained AES Nation to conduct research and prepare informational materials for his use. Mr. McNeely is a member of CEG Roundtable and pays an annual fee for these services. Mr. McNeely is involved in these activities through The LifeStone Companies.
Some materials is published by the VFO Inner Circle, a global financial concierge group working with affluent individuals and families and is distributed with its permission. Copyright by AES Nation, LLC. This report is intended to be used for educational purposes only and does not constitute a solicitation to purchase any security or advisory services. Past performance is no guarantee of future results. An investment in any security involves significant risks and any investment may lose value. Refer to all risk disclosures related to each security product carefully before investing..
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