If you want to have more conversations with more doctors, join the conversations they’re already having in their heads.
I was speaking with the editor of a financial publication for physicians to which I contribute, and she said, “In every issue, we run an article about theft and fraud. This is what our doctor readers want to know about.”
Do you talk with your doctor clients and prospects about how they can protect themselves against theft, fraud and scams?
Let’s explore:
1. Why are doctors the targets of theft, scams and frauds?
2. What kinds of scams do doctors face?
3. What can you as an advisor do to protect your doctor clients from losses from scams, fraud and theft?
Personal Stories
Let me kick this conversation off with some personal stories.
My Stolen Social Security Number
Last year, I got a letter from the IRS. My heart pounded as I opened the letter. It said, “We received an income tax return, Form 1040, for the tax year above using your name and SS#. To protect you from possible identity theft, we need to verify your identity before we process the income tax return, issue a refund or credit any overpayments.”
I complied with the IRS’s request to call them. No, I told them, I had not yet filed my taxes for that year.
The good news is that the IRS successfully identified a scammer.
The bad news is that I knew that someone out there had stolen my social security number and filed a fraudulent tax return.
I found this very upsetting. I even felt some shame. I thought I was very careful, and I wondered, “What did I do wrong?”
One of my financial advisor clients reassured me, saying, “Even if you do everything right, security breaches of businesses who know your social security number, like hospitals and insurance companies, make you vulnerable. Scammers are two steps ahead of honest people.”
Then he said, “The question you should be asking is not, ‘What will I do if my social security number is stolen.’ It should be, ‘What will I do when my social security number is stolen.’ Given enough time, it will happen to most people.”
A Devious Effort to Get My Credit Card Information
Earlier this year I applied for a trademark for “The TrueWealth Way.” This is the name assigned to the intellectual property unveiled in my upcoming book and workbook about how physicians can create the lives they want.
My phone rang and the caller was identified as the USPTO. How exciting to get an update from The United States Patent and Trademark Office! I picked up the call.
The caller identified herself as a USTPO Verification Officer. She said that pending the verification of information on my application, my trademark had been approved. She walked me through items on the form.
She said, “Congratulations. You are welcome to use the TM symbol on your materials. The final approval with take a few months, and then you can use another mark. All I need to complete the verification is to collect the $25 fee which I can take over the phone. Would you like to use Visa, Mastercard or American Express?”
I told her, “I don’t give out my credit card information over the phone. Could you please direct me to the place on the USTPO site I could go to pay this fee.”
She said, “We can only take the payment over the phone, and it needs to be done in the next two days if you want to move forward with the application.”
I said, “I’m sorry but I will not do that. You could be a scammer.”
She said, “Look at your phone. It says the caller is the USTPO. Look at the phone number listed on the USTPO web site. This call is originating from that number.”
I thanked her and hung up.
I called the lawyer who filed my trademark application who said, “I’m glad you checked. The USTPO will never call you. You did the right thing by hanging up.”
Yet another scam. On my cynical days I think that the right thing is never answering my phone!
Why Doctors Are Targets of Fraud, Theft and Scams
There’s a reason doctors are targets of scammers. Doctors have high-value resources.
- Doctors are high earners. Scammers know that physicians make good money, making them lucrative targets.
- Doctors have high-value databases. Doctors have a database of patient medical history and financial data that can be held for ransom. A celebrity Beverly Hills plastic surgeon is being sued by patients who allege that their nude photos were published online after he was hacked — twice — and he did not pay the demanded ransom.
- Doctors have staff and computers. In a moment of clicking on the wrong link, doctors are vulnerable to cyberattacks.
- Doctors tend to be trusting, and they can dismiss their small still voice telling them better. Even Dr. Phil admitted to being scammed by his employee.
- Doctors’ long hours mean doctors may not have time to deeply analyze financial decisions or detect red flags.
- Doctors rely on specialists in their field, and scammers often exploit this trust by posing as professionals.
- Doctors can own or manage practices, deal with payroll, and employ staff—creating more opportunities for fraud and embezzlement.
What Kinds of Scams Do Doctors Face?
- Investment Fraud:
- Doctors can be targeted with Ponzi schemes, shady real estate deals, or “guaranteed return” investments.
- Bernie Madoff had doctor clients.
- Impersonation Scams:
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- Scammers can pose as the IRS, Medicare, or state medical boards, claiming back taxes, licensing issues, or fines.
- Most government agencies will not phone. However, there are exceptions, including the Washington State Department of Revenue.
- Ransomware Attacks and Cyber Extortion:
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- Doctors can be targeted with phishing emails, ransomware attacks, and data breaches.
- Financial Exploitation by Trusted Individuals:
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- Doctors have been betrayed by trusted consultants, accountants, or even family members who steal.
- Practice-Related Theft & Embezzlement:
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- Employees can skim cash, inflate payroll, or falsify patient billing.
- Medical Identity Theft
- Criminals may steal physicians’ professional identifiers to bill for services or equipment never provided. This not only leads to financial losses but also damages the physician’s reputation and can result in legal complications
How Can You as a Financial Advisors Protect Doctors from Scams?
Your role as a financial advisor isn’t just about growing wealth—it’s also about protecting it. That includes protection from theft, fraud and scams. Here are three ways you can deliver more value
1. Educate your clients that they WILL be the target of theft, fraud and scams. Tell stories about other doctors, including those you heard here. Share your own personal stories or real-life cases to illustrate risks.
2. Remind your clients of the steps they can take to protect themselves:
- Educate Doctors on Red Flags – Share information about the most common scams and ways to recognize fraudulent schemes.
- Implement Strong Security Measures – From setting up two-factor authentication to regularly monitoring credit reports, advisors ensure that doctors’ financial data is secure.
- Conduct Due Diligence on Investments – Help verify the legitimacy of investment opportunities before physicians lose money in scams or dumb doctor deals.
- Conduct Regular Financial Audits – Reviewing financial statements can detect early signs of embezzlement or mismanagement.
- Put Legal Safeguards in Place – Establishing power of attorney and structuring assets appropriately can prevent unauthorized access to financial resources.
- Purchase the Right Insurance Policies–Including policies that address identity theft, HIPAA violations and cyberattacks.
- Remind Doctors to Listen to Their Small Still Voices. If they worry about someone, use the “trust and verify” approach
- Remind Doctors to Educate Family and Staff about Safe Phone and Email Habits. If the callers identify themselves as a government official, or a representative of a corporate office, here’s a script.“Thank you for your call. We will call you right back at the number published on your web site. Could you please spell your name.” Do not click on links in emails.
3. Remind your clients of the steps they can take to protect the people they love, whether it’s aging parents, their kids or even their patients.
Remind doctors that scammers are two steps ahead of honest people.
Conclusion
As a financial advisor, you are committed to protecting your clients’ assets. That means more than the loss of investment dollars. You can deliver added value by proactively addressing theft, fraud and scams. Doctors want to hear about this!
Please, leave a note below if you have crazy scam stories or tips about how you as a financial advisor have protected your doctor clients from theft, fraud and scams.