Learn about latest elder fraud tricks and how to avoid them: Internet Scambusters #1,122
The FBI has just reported a huge increase in elder fraud – scams targeting those over the age of 60 – and the crime is likely to get worse.
Even the name of one of the organizations fighting it is being used to scam seniors, while new stings are appearing all the time.
We’ll give you the details in this week’s issue, along with tips on what to look out for and what to do and not do.
Let's get started…
$3.4 Billion Lost In Elder Fraud Rampage
Elder fraud – scams targeting Americans over the age of 60 – soared to $3.4 billion last year, according to newly released figures from the FBI. And that’s probably the tip of the iceberg because many victims don’t report being scammed, while others don’t disclose their age.
As it is, this 2023 total represents an increase of 11% on the previous year, with the average victim losing almost $34,000. Tech support scams were the most widely reported crime, followed by data breach losses, romance scams, non-delivery of purchased items, and investment fraud.
But investment scams netted the highest total for the crooks, accounting for more than a third of total losses. Cryptocurrency fraud played a large part in those losses.
The news comes as government agencies step up their fight against the crooks. The Federal Trade Commission’s (FTC) Scams Against Older Adults Advisory Group met this past April to hear that seniors handed over almost $400 million to crypto scammers.
Monica Vaca, deputy director of the FTC’s Bureau of Consumer Protection told the group, “I don't think we imagined the breadth of the depth of the work ahead of us.”
The group will send a report to Congress later this year. You can download a full transcript of the meeting, covering the group’s activities: Second Scams Against Older Adults Advisory Group Meeting – April 2, 2024.
Latest Elder Fraud Tricks
We’ve reported on elder fraud many times in recent years (you can search our website for these) but the scammers keep coming up with new ideas to trick older victims.
For instance, the government’s US Office for Victims of Crime (OVC) is itself at the center of a new attack. Its National Elder Fraud Hotline name and phone number are currently being used as part of a scam.
Imposters, claiming to be on the Hotline team, are trying to obtain personal information or money from seniors using threats of filing a suit against them. The Hotline number is 833-372-8311, but seeing that on your caller ID doesn’t mean it’s genuine.
“Financial scams and abuses that target older people are happening more and more,” says the OVC.
In addition to the common scams listed above, the FBI highlights less well-known tricks. These include TV and radio ads offering fake reverse mortgages and credit repair services, and a so-called Phantom Hacker scam.
The Phantom Hacker Scam
The Phantom Hacker is the latest version of a tech support scam. It starts in the usual way with a phone, text, email message, or an on-screen pop-up that tells the victim to call a number for assistance with a computer or mobile problem.
When they call this number, they’re told to download software to supposedly diagnose the problem and then to open their online financial accounts to identify unauthorized access. The crook, who now has access to the device, looks for the bank or broker account with the most money, claims it has been hacked, and says the victim will now get a call from a specialist at the bank or brokerage.
Another scammer makes this call and says the account has been taken over by the hacker and the victim must transfer their money to a “safe” third-party account, which is usually overseas. Sometimes, the victim might be told to send multiple transactions over several months.
In some cases, the victim also gets a call from another imposter saying they’re from the Federal Reserve or another government agency, seeming to support the claim that their money is unsafe in their present account.
“Victims often suffer the loss of entire banking, savings, retirement, or investment accounts under the guise of ‘protecting’ their assets,” says the FBI.
They offer the following tips to protect yourself from the Phantom Hacker:
- Don't click on unsolicited links or attachments.
- Don't call the number in any supposed tech support message.
- Don't allow someone you don't know to access your computer.
More Tips To Beat Elder Fraud Attempts
The above tips are good for almost every form of contact you receive concerning your finances or purchases.
In addition, never rush into making financial decisions, keep abreast of common scams via consumer organizations and sites like Scambusters, verify that anyone who contacts you are who they say they are, and keep your computer security software up to date.
Above all, it’s good, as we get older, to discuss with and seek advice from people you trust when it comes to making financial decisions – for example, family members, trusted friends, and financial advisors.
And don’t be afraid or embarrassed to tell them and law enforcement if you’ve been scammed or if you suspect a scammer could be targeting you. You could not only protect yourself from elder fraud (or even get your money back) but also help others avoid the scammers too.
This Week’s Alerts
Listen to your bank: Staying on the topic of elder fraud… If you’re unknowingly in a fake romantic relationship and the person you’re “dating” online asks for money, don’t send it. We think everyone knows this, but love is a strange thing. Victims convince themselves otherwise. Bank employees are trained to spot these tricks and often warn customers of a likely scam. Still, they don’t listen. A 75-year-old married Houston man recently lost his entire life savings of around $800,000 to a fake young lover despite being warned by a teller not to send money. No matter how much you want to believe you have a genuine romance, listen to your bank and discuss the situation with family.
Venmo alert: How do crooks get cash from a stolen credit card? Here’s one way currently doing the rounds: They use the card to send a payment to people who use the Venmo cash transfer service, then contact them and say it was sent by mistake, asking you to return the cash – before the transaction is flagged as fraudulent. If this happens to you, don’t return the payment; contact Venmo on (855) 812-4430. You’ll also find a list of common Venmo scams on their site.
Time to conclude for today -- have a great week!