Sonoco Products Employees: Stay Informed About the Rising Threat of Online Investment Scams

If you work for Sonoco Products, you have likely read news articles and other financial information about your workplace online. As investors become more dependent on the internet, fraudsters can take advantage of those searching for information on the web through social media. The FBI estimates that senior citizens lose more than $3 billion each year to financial scams including romance scams and lottery and sweepstakes scams. This is supported by the CSN Data Book 2020, which states that fraud-related losses in 2020 will exceed $3.3 billion, an increase of nearly $1.5 billion over 2019. As the worldâs population continues to age, this number is only likely to rise. Fraudsters are currently utilizing these public platforms to quickly, cheaply, and easily reach large numbers of individuals.

In addition, as a result of the abundance of resources, fraudsters can now post information that appears to be remarkably clear and credible. In light of this, the SEC's Office of Investor Education and Advocacy advises investors to maintain skepticism and avoid acting solely on the basis of information obtained from social media or other apps. Sonoco Products employees who wish to avoid a scam should be aware that fraudsters disseminate false information anonymously, using the credentials of others, fake profiles, and even impersonating legitimate sources, making it difficult to track and hold them accountable. These individuals frequently spread inaccurate, misleading, or insufficient information. The entries convey a false sense of legitimacy, typically creating the impression that a large number of people are purchasing an investment in order to make it appear attractive to the victim. There are countless schemes that con artists use to defraud online investors. Here are a few cons that Sonoco Products employees should avoid:

Fraudulent Imitation Schemes:

Fraud (46,3%) and identity theft (29.4%) comprise the majority of FTC complaints. With nearly 500,000 total reports, imposter schemes are the most common type of fraud. These losses totaled nearly $1.2 billion, with an average loss of $850. 'Government documents or benefits fraud' was the most common type of identity theft, with over 400,000 reported cases.

Scammers frequently impersonate banks, brokers, investment advisors, and other reputable sources of market information. From 2019 to 2020, reports of fraud and identity theft increased by 47%. Fraudsters are able to obtain a client's information by creating an account resembling a specific individual or company, web pages with a legitimate company's logo, and comments that direct clients to a bogus website. When receiving information through social media, it is essential for Sonoco Products employees who wish to avoid becoming victims of fraud to verify the source's identity. Checking the sender's account name, profile, email address, and screen name is the first step in validating their identity.

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When contacting a company or visiting their website, you may want to review the company's SEC filings to ensure that the contact information and website address are legitimate. You can independently verify an advisor or broker's information using the phone number or website listed in their associated firm's Client Relationship Summary (Form CRS). Those working for Sonoco Products may be able to identify a reliable source by paying attention to a platform's verification methods, such as Twitter's verified blue check mark. On social media, fraudsters have been known to impersonate SEC employees. At www.sec.gov/opa/socialmedia, you will find a list of verified SEC accounts. In addition, there have been instances of fraudsters hacking into a victim's device and contacting their contacts; therefore, if you receive information about an investment opportunity from someone in your contacts list, be sure to contact them in person before making any financial decisions.

Fraudulent Cryptocurrency Investments

The annual number of reported scams in the cryptocurrency industry is enormous. Regulators frequently assert that cryptocurrency frauds are predictable, but Sonoco Products employees should trade with caution. Several factors make the cryptocurrency market susceptible to fraud. Due to the nature of fiat currencies, neither banks nor centralized agencies are available to flag suspicious transactions and prevent fraud before it occurs. Transactions in cryptocurrencies are irreversible; if money is lost, it cannot be recovered, even if the user reports fraud. In recent years, cryptocurrency has received a great deal of attention, and fraudsters are now using investors' fear of missing out on investment opportunities to lure them into scams.

A 'crypto' investment opportunity that promises unusually high returns to Sonoco Products employees is likely fraudulent. The promise of risk-free, unlimited returns is a staple of 'crypto' online scams. Fraudsters frequently depict accounts with instantaneous value increases and fabricate a list of historical returns to increase the appeal of their schemes to investors. Prior to engaging in transactions, Sonoco Products employees who are considering a 'crypto' investment must review how the investment works, ask questions, and conduct a background check on those offering the opportunity for licensing and registration.

Romance Fraud

In 2023, the FBI anticipates an increase in reported financial loss due to a rise in international romance-related crypto investment fraud. Similar to an online relationship, the con artist convinces the victim to invest in cryptocurrency rather than cash. On dating apps and social media platforms, fraudsters are increasingly impersonating individuals with deceptive intentions while concealing their identities. Sonoco Products employees should be aware that these scams typically function by establishing an online relationship with the victim and gaining confidence/trust. Once the relationship has been established, the fraudster informs the victim of a 'once in a lifetime' investment or trading opportunity involving cryptocurrencies. The victim is then pressured to invest money on a fraudulent website and is unable to withdraw their funds. The fraudster then ceases communication with the victim and the victim is unable to recover the money.

Schemes to Manipulate the Market

Those working for Sonoco Products must also consider how fraudsters' dissemination of false information can affect the price of a legitimate stock or cryptocurrency. Fraudsters may promote an investment while posing as another individual and create new accounts designed specifically for the fraud while concealing their true identity. In light of this, it is essential to verify the posting history and original content of an account. Sonoco Products employees should be aware of the following schemes that rely on the dissemination of false information: pump and dump, scalping, and touting.

Pump and dump schemes inflate the price of a stock artificially by creating deceptive statements that incite a buying frenzy, followed by the sale of shares at the inflated price. Scalping entails recommending a stock to increase its price, then selling it for a profit. Touting entails promoting a stock without disclosing compensation for doing so. In other instances, fraudsters spread negative rumors on social media that generate fear, uncertainty, and doubt (FUD) to drive down the price of a stock or currency, which they then purchase at a discount. Therefore, Sonoco Products employees should exercise extreme caution when purchasing stock in a company that is constantly promoted despite having no products or services to justify its value. Regardless of the sender, it is also essential to maintain a healthy level of skepticism regarding investment-related posts, messages, emails, and other unsolicited communication.

Fraudulent Community-Based Investment

Fraudsters are also known to exploit online communities, specifically targeting groups with shared characteristics such as age, ethnicity, nationality, religion, and sexual orientation. These cons take advantage of the trust and bonds within a community in order to defraud multiple people simultaneously. By mail or in person, fraudsters contact the leaders of these communities about a scheme. After persuading them, they recommend the same to other members without realizing that the proposed investment is fraudulent, deceiving an entire group of people. Sonoco Products employees can avoid being duped by conducting a background check and searching the individual's name on investor.gov.

When presented with an online investment opportunity, Sonoco Products employees must be aware of what is being offered and with whom they are dealing due to the internet's vast array of scamming opportunities. When searching for financial information online, it is essential to conduct your own research, conduct background checks on individuals, and verify the website's credibility. Before investing, it is essential to research a company's publicly available information and become familiar with its business. When protecting themselves from fraud, Sonoco Products employees must also avoid being pressured into financial transactions and refrain from following groups into trendy investments. Taking these factors into account, Sonoco Products employees should seek out a legitimate financial advisor to avoid falling victim to an investment scam. The Retirement Group caters to your personal financial needs and develops a customized plan to ensure a secure and comfortable retirement through proper financial planning.

Reference(s):

https://www.sec.gov/oiea/investor-alerts-and-bulletins/social-media-and-investment-fraud-investor-alert
https://www.comparitech.com/identity-theft-protection/senior-scam-statistics/
https://www.analyticsinsight.net/top-ten-cryptocurrency-frauds-of-2023/
https://www.fbi.gov/contact-us/field-offices/jacksonville/news/romance-scammers-targeting-victims-with-fake-crypto-investments#:~:text=In%202023%2C%20the%20FBI%20anticipates,victim%20to%20investment%20in%20cryptocurrency .

In the context of the retirement benefits provided by Sonoco Products Company, what are the different scenarios that could lead an employee to choose either the Normal Retirement Benefit or the Early Retirement Benefit, and what factors should be considered in making this decision? Additionally, how do these benefits interact with the vesting service and benefit service calculations specified by Sonoco Products Company?

Normal Retirement Benefit: Available at age 65, provides full monthly pension calculated by a predetermined formula. Early Retirement Benefit: Available from age 55 with 15 years of service, but monthly payments are reduced to account for the longer payment period. Employees must weigh the reduction in monthly benefits against the potential need or desire to retire early. Considerations: The choice largely depends on personal financial needs, health status, and employment circumstances. Early retirement reduces monthly benefits, which could impact long-term financial stability.

Considering the details about tax implications in the Sonoco Pension Plan, what steps should employees take to ensure they understand the taxation of both monthly annuity payments and lump sum payments when they retire from Sonoco Products Company? What resources does Sonoco offer to assist employees in navigating these tax obligations effectively?

Monthly Annuity Payments: Subject to federal income tax; state and local taxes may also apply. Employees can choose whether or not to have taxes withheld. Lump Sum Payments: Subject to mandatory 20% federal withholding if not rolled over into another qualified plan. Employees must consult with tax professionals to understand the taxation and potential penalties, especially if under age 59½. Resources: Sonoco provides access to benefits specialists through their Benefits Center and recommends consultation with tax advisors to manage tax obligations effectively.

How does Sonoco Products Company define and calculate the "Maximum Plan Benefit," and what impact do IRS limits have on the benefits that employees may receive upon retirement? Furthermore, how does this ensure that employees understand their entitlements under the plan?

Defined by IRS limits, which cap the annual benefits an employee can receive. For 2018, the limit was $220,000. Impact: Ensures high earners are aware of the maximum pension they can draw annually, and helps in planning additional retirement savings if necessary.

For employees at Sonoco Products Company who may be considering reemployment after retirement, what are the potential impacts on their pension benefits, and what guidelines does the company provide regarding how these benefits are recalculated upon re-entering the workforce?

Pension benefits cease during reemployment and resume upon re-retirement, recalculated based on additional service. This could affect decisions on returning to work post-retirement. Guidelines: Sonoco outlines how benefits are recalculated and emphasizes consulting with the Benefits Center to understand the specific impacts.

In what ways can employees of Sonoco Products Company calculate their required service years to determine pension eligibility, and what nuances exist in the vesting and benefit service calculations? How do these calculations affect the retirement planning process for long-term employees?

Vesting Service: Determines eligibility for a pension. A minimum of five years is required for a vested pension benefit. Benefit Service: Used to calculate the amount of pension. It includes periods of employment but may exclude certain leaves or breaks in service. Implications: Understanding these definitions helps employees plan their career and retirement timing to maximize benefits.

Employees at Sonoco Products Company are often curious about the various forms of payment they can choose for their pension. What are the available options, and how do these options differ in terms of financial implications for the retiree and their beneficiaries?

Options: Single life annuity, joint and survivor annuities (50%, 75%, 100% survivor benefits). Financial Implications: Each option impacts the monthly benefit amount and the security it provides to beneficiaries, necessitating careful consideration based on marital status and financial needs.

Understanding the process of applying for plan benefits can be complex for many employees. What are the specific steps that Sonoco Products Company employees need to follow to apply for their pension benefits, and what resources are available to help streamline this process?

Process: Initiated via Sonoco Benefits Center, involving choosing a retirement date, understanding benefit options, and completing necessary paperwork. Resources: Detailed support through retirement specialists aids in navigating the process smoothly.

Many employees may not be aware of their rights under ERISA as participants in the Sonoco Pension Plan. What specific rights and protections do employees have, and how can they assert these rights if there are disputes or issues regarding their pension benefits at Sonoco Products Company?

Provides specific rights regarding plan information, appeal processes for denied claims, and protections against plan abuses. Asserting Rights: Outlines steps to take if there are disputes over pension benefits, including the right to sue after exhausting administrative remedies.

If a Sonoco Products Company employee experiences a significant life change, such as divorce or a domestic relations order, what procedures must they follow regarding their pension benefits, and how does Sonoco manage such situations under the guidelines laid out in the plan documentation?

Procedures: Employees must follow specific procedures for dividing pension benefits in the event of divorce, under a Qualified Domestic Relations Order (QDRO). Management: Sonoco’s Benefits Center provides guidance and necessary documentation to ensure compliance with legal requirements.

For employees looking to learn more about their retirement options and benefits at Sonoco Products Company, what contact information is available for them to reach out for assistance? How can employees utilize these resources effectively to gain a clearer understanding of their retirement planning?

Available through the Sonoco Benefits Center, offering comprehensive support for retirement planning and benefit queries, essential for effective retirement planning.