When Christine Bledsoe’s computer suddenly froze, the 66-year-old retiree was relieved to see a tech support message from Microsoft come up on her screen. She called the number they provided, but soon found herself caught in one of the most common scams impacting the 62+ community today. The fraudster, posing as a Microsoft employee, persuaded her that her computer and bank account had been hacked, and to transfer her savings into a “secure” account overseas. By the time she realized that the tech support representative was illegitimate, she had lost tens of thousands of dollars that she could not recover.
She’s far from alone. According to AARP, fraud victims over the age of 60 lost $28.3 billion in 2022, with the
bulk of losses going unreported. As technology advances and fraud techniques become more sophisticated, it's essential that our community stays informed and vigilant. Here are some common types of financial fraud that the 62+ community should be aware of. We’ll be covering these scams in more depth in future editions of Charlie FraudWatch:
Phishing (pronounced: fishing): These scams involve fraudsters posing as legitimate companies, family or acquaintances in order to “fish” personal information from you, such as Social Security numbers or bank account details. They may pose as your bank, a utility company, a government agency, or other trusted institutions. How to protect yourself: Be wary of unsolicited emails or phone calls asking for sensitive information. Remember, legitimate organizations will not call you or email you asking for sensitive details.
Identity Theft Scams: Identity theft involves someone stealing your personal information to commit fraud. Fraudsters can often obtain this information from “The Dark Web,” a term used to refer to websites that traffic in illegally-obtained personal information. How to protect yourself: Monitor your credit reports regularly, and review your bank statements on at least a monthly basis. Shred sensitive documents before disposing of them. As a rule, be cautious about sharing personal information. You may consider freezing your credit, which would prevent fraudsters from setting up new credit card or bank accounts in your name.
Tech Support Scams: Similar to Christine’s story, fraudsters may claim to be from a well-known tech company and assert that your computer has a virus. From here, they can either insist on collecting fees for fixing the alleged virus, or may pressure you into moving funds out of your bank account because your accounts have been compromised. How to protect yourself: Be skeptical of unsolicited calls or messages claiming your computer is infected. If you are having issues with your computer, only contact valid tech support numbers provided by your computer’s manufacturer.
Lottery or Sweepstakes Scams: In these scams, you may receive an email, text or phone call to inform you that you’ve won a sweepstakes (for example, a new iPad or TV) or a lottery, and need to pay a fee or taxes in order to claim the prize. After you pay said fee, the fraudsters fail to deliver you winnings, and stop responding altogether. How to protect yourself: If you don’t remember entering a lottery or sweepstakes, then you probably haven’t won that lottery or sweepstakes. Ignore any solicitations from companies you don’t recall interacting with before.
Grandparent Scams: Scammers may pose as a grandchild in distress, needing money for an emergency or to get out of jail. The scammers can often pick up enough of your family information from the internet and social media to provide a convincing story. They’ll ask you to wire money, and then disappear. How to protect yourself: Always verify such claims by contacting your family members directly through known phone numbers. Consider creating a “secret phrase” that only you and your family members would know, as a way to confirm you are really speaking with a family member on the other end of the call.
In future editions of Charlie FraudWatch, we’ll discuss Medicare scams, home repair scams, and much more. It’s frustrating and dismaying that fraudsters are out there, trying to take advantage of you and your trust. To protect yourself, always be cautious and seek a second opinion if something doesn't feel right. Stay informed about the latest scams, and don't hesitate to report any suspicious activity to the authorities. Remember, staying vigilant is your first line of defense against financial fraud.
Thanks for reading,
Tony from Team FraudWatch
P.S. If you find this article valuable, please share it to a friend or relative. We’re in this together.
