NEW YORK – Charlotte Cowles, a personal finance columnist for New York Magazine’s The Cut, fell victim to an elaborate phone scam that cost her $50,000 in savings. Over the course of a 6-hour phone call, scammers posing as government agents manipulated Cowles into withdrawing the cash from her bank account and handing it over to a stranger. Her story serves as a cautionary tale of how even the most financially savvy can be targeted by fraudsters.
How The Scam Happened with Charlotte Cowles
The scam began with a simple phone call. A woman claiming to be from Amazon customer service told Cowles that unusual activity had been detected on her account. When Cowles said she did not have an Amazon business account, the woman claimed she had two accounts on file and transferred Cowles to a man identifying himself as an FTC investigator.
The man, “Calvin Mitchell,” said Cowles was implicated in an identity theft ring involving money laundering and drug trafficking. He already had Cowles’ personal details – her social security number, address, and family member’s names. Mitchell instructed Cowles not to tell anyone, including her husband and family, convincing her that she was in danger and being monitored.
Over hours of manipulated back-and-forth, Mitchell said the only way to protect herself was to withdraw her savings in cash and put it in a box for a colleague to pick up. He warned Cowles she would be arrested if she did not comply. Feeling she had no other choice, Cowles withdrew $50,000 from her bank and handed it to a stranger in an SUV.
The Psychological Manipulation
Experts compare tactics used by scammers to those that coerce false confessions. By slowly distorting Cowles’ sense of reality, they got her to take actions she never normally would. Threats to her family’s safety also exploited her maternal instincts.
“At that point, they’re not thinking straight. They feel the need to put an end to the situation at all costs,” said psychology professor Saul Kassin.
The scammers kept Cowles engaged for hours, exhausting her critical thinking. When our cognitive abilities are depleted, we become more susceptible to persuasion.
A Shared Sense Of Shame
In the aftermath, Cowles was left rattled and blaming herself. She is not alone. Nearly half of scam victims feel shame, wondering how they could have been so gullible.
But Cowles’ story reveals that financial knowledge offers little protection when scammers weaponize personal information and psychological tactics. Their coercion can make anyone feel they have limited options.
Who Is At Risk?
While scams often target the elderly, younger adults are increasingly affected. Those aged 18 to 39 are 34% more likely to report fraud losses than those over 60, per the FTC. Education level and income do not make much difference either.
Scammers cast a wide net using robocalls and texts. They may focus on those who seem trusting, lonely or polite on the phone. But ultimately anyone could be one targeted call away.
How To Avoid Being Scammed like The Cut Finance Columnist
While scammers’ techniques are evolving, their hallmark is always pressure for quick action coupled with threats. Experts advise:
- Never give personal info like social security numbers to unsolicited callers
- Don’t be rushed into any financial decisions
- Verify identities by calling organizations directly
- Consult trusted friends, family or professionals
- Report threatening calls to authorities
There are no foolproof safeguards, but slowing down to verify claims can stop most scams before they escalate.
The Rising Threat Of Scams
Imposter frauds like what happened to Cowles are on the rise, increasing by 30% in 2022 alone. Total reported losses exceeded $2 billion.
Experts believe many more scam cases go unreported due to shame or fear. And scammers are growing more sophisticated, often accessing personal details illegally online before calling.
Law enforcement is challenged to keep up with largely overseas criminal networks. Maintaining vigilance around calls, emails and texts remains our first line of defense.
The Road To Recovery
For Cowles and all scam victims, healing comes gradually through self-compassion, therapy and realizing it could have happened to anyone.
By sharing stories, we deny scammers the shame they aim to instill. Taking back control also means being selective in answering unknown calls.
Cowles is still coping with lingering paranoia months later. But her resolve isunchanged. “I have to accept that someone waged psychological warfare on me, and I lost. For now, I just don’t answer my phone.”
