Fraud, Scams and Identity Theft – The Problem is Massive and Getting Worse
This blog is much longer than usual but important to read as the number and sophistication of scams is growing daily. It covers the most common and current scams to help seniors stay as safe as possible.
As we know, people 65+ are 34% more likely to have lost money in a scam that people in their 40’s. And, there are “sucker lists” being built every minute from people who have responded to a scam. These lists are now sold on the black market which means seniors will be targets from highly sophisticated and ever-increasing globally generated scams.
Below are the most common scams currently in use but new ones surface every day. Be careful.
The Grandparents Scam: This scam is 50 years old and still nets more victims each year. Last year $41MM was scammed from seniors! The senior gets a call saying, “Hi Grandma (or Grandpa), do you know who this is?” When the unsuspecting grandparent says the name of the grandchild, the scammer says yes and I’m in trouble (need to pay rent, had a car accident, in jail, etc.) and please don’t tell Mom or Dad. Would you just wire me money to take care of this and I’ll pay you back? They then direct the grandparent to wire the money via Western Union or MoneyGram.
Your Granddaughter Has Been Kidnapped: An advanced version of the Grandparents scam. The phone rings saying your daughter, son, spouse, granddaughter, or grandson has been kidnapped and they want $10,000. Go to this location and wire the money or they will be killed.
What to do? Don’t panic! It’s a scam. Tell them you are in the bathroom and you’ll call them right back. If they won’t hang up, hang up on them. Then call your family member or other family members until you find out where your loved-one is. Keep the number which can be reported to the police.
Mom It’s Me, Quick I Need Your Social Security Number: Mom, it’s me, quick I need your social security number to fill out some forms for work (school). I need it now. Julie, you could at least say hello. Hi Mom, but quick I need your social security number, I have only five minutes. Thanks mom, I love you.
Julie’s mom has just given her social security number to a scammer via cell phone spoofing. Why did she do this? Doesn’t she know not to answer those questions from a stranger? Yes, she knows but Julie’s name and cell phone number appeared on her mom’s phone! How could this happen if the caller wasn’t daughter Julie?
There is now technology that enables a caller to clone someone’s cell phone number, their name and even their photo so that the person receiving the call believes they are talking to a loved one, close friend, clergy, or others well-known to them. This is the new era of phone scams. It is the next stage of robocalls.
Sweetheart Scam: Another longtime scam that is netting millions. It affects all ages but seniors are the biggest target due to loneliness and isolation. Last year scammers netted $200MM! This scam plays on the lonely senior who is trying dating websites to meet someone. Senior dating websites are now rife with fraud. Photos and profiles are hacked from the websites, then put up under other names. The photos are always attractive; they people are usually listed as widowed and they are often 10 to 30 years younger than the person they message. The quickly send a flirt or quick message then ask for the person’s private email and/or their phone number. That’s when the real scam starts. These are ‘fake’ sweethearts. As in many cases, international organized crime is involved. They ask for money to come and visit, or to get ‘home’ from vacation in Europe after their wallet, passport, etc. has been stolen. They often talk to the senior over the phone, meet with them over Skype – using a paid person to be the ‘companion.’ They ask for funds to be sent by MoneyGram or Western Union in amounts always under $10,000 to ensure the U.S. government is not notified. They also ask for personal information about neighbors, family members and anyone else that is then used for scams directed at those people.
This is a particularly scary scam as the perpetrators are outside of the U.S. They develop long-term relationships with seniors, often receive hundreds of thousands of dollars and get enormous amounts of information from them about themselves, their families, friends and neighbors putting many more at risk.
Lottery/Sweepstakes: In this scam, seniors are told they have won money or a prize but in order to receive it they must pay a fee and/or need to provide personal information such as their bank account and routing number; or they receive a fake check, which takes days to process, and the scammer asks them to pay fees or taxes on the money.
Just Say Yes! This scam involves the user saying “yes” to the question from the caller. The caller starts the conversation with a question – the most common question right now is “Can you hear me?” Other questions that will generate a “yes” answer are: “Are you the homeowner”, “Are you the lady of the house”, “Do you pay your telephone bill?”
The caller records the “yes” then uses your answer to authorize charges on a phone or credit card. In many cases fraudsters will play back the victim’s verbal confirmation and threaten to take legal action if they deny the charges.
What to do?
- Do not answer calls from numbers not recognized; let them go into voice mail
- Do not answer questions over the phone
- Do not confirm the phone number or anything else over the phone
- Never give out personal information
If they have gotten and especially if you have responded to these calls, carefully monitor their credit cards.
Email Message Fraud: Seniors receive a message asking them to verify or update their personal information, or a notice from one of their credit card companies that looks legitimate saying there may have been fraudulent charges on their card or the get notices about a tax refund. These messages are trying to get at the senior’s information that will enable the perpetrator to open accounts or worse, sell the information on the black market.
Fake Check Scam: Seniors use online websites to sell items they no longer need. They receive a response offering a cashier’s check made out for the asking price or sometimes more than the asking price. The senior sells the item, ships it only to find the check is fake.
Direct Phone Calls: Some of the latest scams involve ‘robo’ calls to seniors. Once the senior answers the phone the caller says are you on your computer? Whether the answer is yes or no, the caller says I’m calling from Microsoft (or other brand) and we have determined that you have a virus. You need to go to your computer. They then say they can repair the virus right now by having access to the computer through sites such as TeamViewer or LogMeIn. They then take control of the computer, load a program so they can capture all key strokes including user names and passwords. Or they demand a ‘ransom’ to return your computer to you. Options are: 1) shut down the computer, never open it again, buy a new computer and start over; 2) hire a competent, reputable computer repair firm.
Calls from the IRS, Social Security and Medicare: The U.S. Government NEVER calls or emails people, they send letters through the mail. In this scam the caller has a caller ID with an area code of 202 – the DC area code. They say you have a problem with your account and they need information to correct it. They want your social security number, Medicare number and other private information.
The caller does not have the person’s name. The caller is off-shore and usually has a non-U.S. accent. Hang up immediately. If the senior is reluctant to hang up on the caller, they should tell the caller they can’t talk and will call them back and ask for the callback number – upon which the call goes dead.
Your Electricity is Being Turned Off for Non-Payment: A newer scam is the senior is called and told the caller is from the electric company and their electricity will be turned off in 15 minutes if they don’t pay their bill right now via credit card. The senior is scared and nearly always gives them the credit card, expiration date and CVV code.
Lots of Scams: There is no shortage of scams and identity theft schemes aimed at seniors. There are many others from counterfeit medications to home repairs, funeral and cemetery scams to investment and reverse mortgage scams. To remain safe and independent, use referrals from trusted sources when you need services such as repairs, investments, funerals, reverse mortgages. The Seniors’ Answer can also provide referrals.