Be on the Lookout for New Scams – They Might Be Targeting You

Be on the Lookout for New Scams Targeting Seniors

Last year, the FBI warned that fraud crimes targeting senior citizens are rising drastically and getting more advanced. An estimated $28.3 billion is lost to elder fraud scams each year, and that number is growing. We want our clients to be on the lookout for these scams and to warn your friends and family about them too.

Phone call scams where you are told you have won a great prize have been around for a long time, and most people know to hang up the phone immediately. Sadly, scammers have gotten far more sophisticated and are able to use technology, including AI, to assist them. The following are some of the top schemes to be aware of this year.

Government Impersonation Scams

Here, scammers call or email unsuspecting seniors pretending to be the IRS, Social Security Administration, Medicare, or the VA. They may tell you that you have unpaid taxes and threaten to withhold benefits or even arrest you if you do not pay immediately. They may not even ask for money – some scammers will call and politely ask you for personal identifying information to “update their records and continue your benefits” and then use it to steal your identity. Further, scammers have a new technology that allows them to change their location to appear more legitimate, so that it appears they are calling from Washington, D.C., for example. Be aware that a government agency will never call you out of the blue and require your personal information.

The Loving Grandparent Scam

This devious scam targets every grandparent’s biggest weakness – their hearts. Scammers call a grandparent using voice-changing technology and pretend to be their favorite grandson or granddaughter. The scammers can search for you and your family on Facebook to learn names and information that they can share to gain your trust. For example, they may see that your grandson goes to school at Montana State University, so they will bring that up to make you believe that it is really them. They will then ask you for money to solve some urgent financial problem like overdue tuition, car repairs, or even bail to get them out of jail. Sometimes, the scammer may instead pretend to be a police officer, doctor, or lawyer trying to help the grandchild and demand that you pay them for their services.

Fake Investment Schemes

Your fraud alarms should go off any time you get a call or email regarding an investment opportunity. Scammers are ripping off seniors with promises of once-in-a-lifetime investment opportunities in businesses, stocks, and even cryptocurrency. Keep your financial investments to in-person meetings with your financial advisor. Remember the golden rule of fraud: if it seems too good to be true, it probably is.

Tips to Protect Yourself from Fraud

You should never give out personal information over the phone or email. Be careful anytime you get a call you were not expecting. Even if you get a call that sounds like it is from somebody you know asking for money or information, you should contact them using a different method to verify that it is really them. Be aware that fraudsters might call you pretending to be one of your favorite charities asking for a donation. Do not be embarrassed to report fraud to the authorities, to your bank, and to your family. Do not click on links in emails that you were not expecting to receive. Romance scams are a sad new trend, and you should be suspicious of anyone who contacts you through social media that you have never met in person. None of us are ever going to randomly win $1,000,000 or a brand-new car, so if you get a call, letter, or email saying you did, don’t fall for it!