In early 2021, Marjorie
Bloom, a 77-year-old retired federal attorney, fell victim to a complex tech
support scam that cost her $661,000. In summary, the scammer pretended to be a
“fraud investigator” from PNC Bank, where Ms. Bloom had been a long-standing
customer.
How could such a fraudulent
activity occur? According to CNBC, the “investigator”
persuaded her that criminals—using stolen personal data—were in the process of
pilfering her life savings.
To protect her money, he
said, she needed to take preventative action and move her funds quickly and
covertly.
Divulging the problem to
anyone, especially to her three children, could thwart the “bank’s” efforts to
protect her life savings, he said.
How was she contacted? An
unsolicited popup window on her PC alerted her to call a customer support phone
number listed on the screen, supposedly for Microsoft.
Let’s be clear: Legitimate
tech companies never do this. Let me repeat that. Legitimate tech
companies never do this.
How did she receive the
popup message? Possibly, she was simply surfing the web when a site that had
been infected with a malicious code launched the popup and the phone number
that led to criminals.
Unfortunately, she called
the number, and the “engineer” informed her she had been hacked. She
volunteered that she banked at PNC, and he transferred her to a scammer posing
as a PNC fraud investigator.
It’s heartbreaking to relay
such a story, but do you see some of the red flags? It’s easy in hindsight.
- Don’t tell anyone.
- You must move quickly.
- It was an unsolicited popup on her
computer.
What’s more concerning is
that if a legitimate bank employee raises red flags about unusual transactions,
scammers are often ready with convincing scripts to coach you through the
interaction, making it harder for legitimate fraud teams to intervene and protect
you.
Scammers are slick, smooth,
and ruthless.
A
bigger problem
In 2024, Americans over the
age of 60 lost $4.8 billion through scams and fraud, according to the FBI’s Internet Crime Report.
The average loss: $83,000.
Americans over all age
groups reported total losses of over $16 billion, or a staggering 33% increase
from 2023, with an average loss of just over $19,000.
The average loss for all
age groups is less than the average loss reported by older people, which
“underscores that fraud affects people of all ages. But when older adults are
victimized, the impact is often catastrophic,” notes Kathy Stokes, AARP’s director
of fraud prevention programs.
Why
do scammers target older Americans?
- Older Americans control a
significant portion of wealth.
- They tend to be more trusting.
- They may be less tech-savvy.
- They are more prone to cognitive
decline and may not recognize they are being scammed.
- They are less likely to report the
crime.
Not all the complaints
included age information, and many folks who were scammed didn’t report it
either because they believed they would never get their money back, or they
were just too embarrassed to come forward.
It’s safe to assume that
the nearly $5 billion older Americans had siphoned away is just the tip of the
iceberg.
Nevertheless, as more of us
become mindful of the various tools criminals use to defraud unsuspecting
victims, we become better equipped to deal with potential threats and are in a
much better position to avoid falling prey to the many schemes that are proliferating
over the phone and across digital platforms.
Avoiding
investment scams
In 2024, investment scams
led the pack for older Americans with $1.8 billion in reported losses—almost
twice the toll from tech support scams, which accounted for nearly $1 billion.
So, what are the best ways
to avoid investment scams?
1.
Ask questions. Fraudsters are counting on you not to
investigate before you invest. Fend them off with an inquisitive nature.
2.
Research before you invest. Unsolicited emails,
message board postings, and company news releases should never be used as the
sole basis for your investment decisions.
3.
Know the salesperson. Spend some time checking out the person
touting the investment before you invest—even if you already know the person
socially.
4.
Be wary of unsolicited offers. Be especially careful
if you receive an unsolicited pitch to invest in a company or see it praised
online, but you don’t find current financial information about it from
independent sources.
5.
Protect yourself online. Online and social
marketing sites offer a wealth of opportunities for fraudsters.
6.
Be leery of “guaranteed” returns. Outside a select few
investments, such as FDIC-insured CDs, promises of high returns with little or
no risk are a red flag.
7.
Strengthen your digital defenses. Use strong, unique
passwords, enable multi-factor authentication, and keep your devices updated.
Good digital hygiene helps block phishing and impersonation attempts.
8.
Talk to someone you trust. Mull it over with a
friend or family member. Never succumb to the pressure that you must act now.
Please remember that we are
always available if you have questions about any investment.
What
about tech support scams?
According to Microsoft, tech support
scams are an industry-wide issue where scammers use scare tactics to trick you
into unnecessary technical support services that supposedly fix your device or
remedy software problems that don’t exist.
Tech support scams are on
the rise and often start with a popup message or a sudden phone call claiming
there’s a problem with your computer or device.
The goal is to get you to
pay for fake repair services or grant remote access to your device. Once
inside, scammers can install harmful software that puts your personal and
financial information at risk.
Furthermore, ignore popup
warnings with phone numbers and keep your software updated.
The best defense is
awareness. If you ever receive a suspicious message or call, don’t respond or
click any links. Instead, contact the company directly using a number from
their official website—not one from a popup or email—or reach out directly to a
trusted source, such as your IT professional or a family member or friend.
What
if you are a victim?
Report the crime at https://www.ic3.gov/.
The Internet Crime Complaint Center (IC3) is the central hub for reporting
cyber-enabled crime. It is run by the FBI.
What if you paid a scammer?
The Federal Trade Commission encourages you to contact the company or bank that
issued the credit or debit card. Inform them it was a fraudulent charge.
Fraudulent wire transfers
could be reversed if you act quickly.
Cryptocurrency payments are
not reversible. Any company that insists on payment in cryptocurrency should
immediately raise serious concerns, as it is often a hallmark of fraudulent
activity.
You can report the fraud
at https://reportfraud.ftc.gov/.
Bottom
line
Scammers are growing
increasingly sophisticated; they show no mercy and often target older adults
with deceptive and convincing tactics.
But with the right mix of
knowledge, caution, and common sense, you can greatly reduce your risk of
fraud.
If you have any questions
or concerns, don’t hesitate to reach out to me or any member of our team. We’re
here to help.
