I had the opportunity to meet with a retired FBI agent for this segment and he shared with me that scammers are getting more and more sophisticated, bold and daring. And the statistics are scary. In 2022, the FBI reported that total losses by elderly victims increased by 84 % from 2021 – over $3 billon dollars. And that’s just what had been reported to the FBI’s Internet Crime Complaint Center.
“Grandparent Scam”
It usually starts with a grandparent getting a telephone call. On the call, the scammer will impersonate a grandchild or say they are with your grandchild who claims to be in trouble and needs money immediately. They will say they are at the airport and lost their wallet or the grandchild has been in an accident or is involved in a crime. The scammers scour the internet and find identifying information that makes the scam more believable – like having correct names, places, etc. And, with artificial intelligence, these scammers can even clone voices from social media postings. The criminal calls and asks for money as cash, gift cards or wire transfers and won’t let you get off the phone or threatens if you try to verify the information.
TIP: First of all, being aware of this scam is the best defense. However, if you have another phone to call the grandchild, try calling. Or if you are on a cell phone, try texting the child. And a red flag – the caller is asking for gift cards or a wire transfer – this is a common part of the scam.
Claim to be a representative of a government agency – Medicare, IRS, Social Security
Fraudsters may even use caller ID to make the call seem genuine. Some callers claim to be Medicare representatives to “verify” your Medicare number, then they will steal your health benefits. Phony IRS agents will collect personal information to file phony tax returns or commit identity theft. Social Security scams include the fraudster calling saying your social security number has been suspended due to an alleged crime, and you have to pay to get it reinstated.
TIP: Hang up and call back the agency’s official phone number from their website if you want to make sure all is well. And know that the IRS does not accept gift cards!
Lottery or sweepstakes fraud
The initial contact for the lottery or sweepstakes fraud is often a phone call, an email, or a piece of mail congratulating the individual for winning a big contest, a lottery, or a sweepstakes the victim did not enter. To claim their prize, the victim is told they need to pay upfront fees or taxes first.
TIP: If you didn’t enter the contest, you didn’t win it!
Romance scam
This scam can take place over longer periods of time. A criminal will adopt a fake online identity to gain a victim’s affection and confidence and create the illusion of a romantic or close relationship to manipulate and steal from the victim. They quickly establish a relationship, endear themselves to the victim, and gain their trust. They will even attempt to isolate the victim from friends and family. Scam artists frequently say they are in the military or working on an international business project so they cannot meet in person. It then also makes more sense when they ask the victim to send money overseas. Frequent requests are for fake medical emergencies.
TIP: Even if it is a long-distance relationship, today with Zoom and Facetime, if you don’t see someone “live” within a few weeks of a new relationship – that’s a huge red flag.
Tech or support center fraud
You can get an email that encourages you to click on a link or download an attachment that could install malicious software on your device.
Scammers take advantage of victims’ unfamiliarity with technology or newer payment methods.
TIP: If it’s an email, look at the URL. If it uses .net instead of .com, (and the real website has a .com ending) or it might have one extra letter or period – it’s not who they say they are. And if you get a pop-up message on your computer, saying there is a virus or a problem – don’t click on any link or attachment. Turn your computer off immediately.
Warning Signs
You get an unsolicited call.
The caller uses threatening language and uses a sense of urgency “if you don’t do this now…”.
The form of payment requested is gift cards, money transfers or wire transfers.
The caller asks for sensitive information like your Social Security number, Medicare number or bank account number.
The caller asks you to allow them to get into your computer.
Tips
Slow down – the fraudsters create a sense of urgency to get your defenses down and to get you into a heightened emotional state where you can’t think clearly.
Listen to your gut.
Don’t be afraid to push back– ask questions.
Hang up and call the company or institution in question at an official number.
Beware of requests for gift cards, money orders or requests to wire money.
Beware of requests to send money internationally.
Report it right away to the local police and FBI.
How to report the scam. If you have actually sent or spent money, report it to the fraud department of your bank or credit card company. The FBI has an Internet Crime Complaint center where you can report fraud. It is https://www.ic3.gov/Home/FileComplaint. You can also report it to your local police department.
If you believe the scammer has also stolen your identity, you can reach out to the Federal Trade Commission at 1-877-FTC-HELP or 1-877-ID-THEFT. They also have a place on their website, www.ftc.gov to file a consumer complaint or report identity theft.
If you are unsure about where to direct your scam complaint, you can call the FBI at 202 324-3000.
To file a police report for a scam, you will need to make a call to or visit the fraud division of your local police department.