For many older adults, the golden years should be spent enjoying the fruits of a lifetime of labor—unfortunately, for some, it can become a time of vulnerability to financial predators. Recent Federal Trade Commission (FTC) data indicates a disturbing rise in fraudulent activities, with consumers reporting losses nearing $8.8 billion in 2022, a sharp 30% increase from the previous year. Seniors are particularly at risk, with those aged 60 and over reporting some of the highest losses.
Phyllis Weisberg, a 90-year-old who lost $20,000 to a tech support scam, is a prime example of how even the most vigilant can be deceived. Phyllis’s story is not unique; it reflects a growing trend of sophisticated scams targeting seniors who may be more trusting or not as technologically savvy. The emotional and financial impact of these scams can be devastating, particularly for those on fixed incomes.
Understanding the nature of these scams and the red flags can be a significant first step in protecting yourself or a loved one. Here’s a look at the top three payment scams that prey on older adults, along with tips on how to recognize and avoid them.
1. Imposter Scams
Imposter scams involve fraudsters pretending to be someone they are not to steal money or personal information. In 2022, these scams accounted for a staggering $2.6 billion in reported losses. Scammers often impersonate authority figures such as utility company representatives, IRS officials, or even bank employees. They exploit the respect and fear that authority naturally commands to coerce their victims into making payments or divulging sensitive information.
How to Protect Yourself:
- Verify the identity of the caller by hanging up and calling the company or agency directly using a number you find on their official website.
- Remember, no legitimate organization will rush you into making a payment or threaten you.
2. Sweetheart Scams
These scams are emotionally manipulative and particularly cruel, as they prey on the loneliness some older adults may feel. Scammers create fake profiles and build relationships with their victims, slowly gaining their trust. Once a bond is established, they begin to fabricate scenarios that require financial assistance, such as medical emergencies or travel expenses.
How to Protect Yourself:
- Be cautious with online relationships, especially if the person is quick to profess love or asks for money.
- Discuss any online relationships with friends or family members, as they may offer a more objective opinion on your situation.
3. Online Marketplace Scams
With the increasing popularity of online shopping, scams on platforms like Amazon, eBay, Facebook Marketplace, and Craigslist are also rising. Both buyers and sellers are vulnerable. Buyers might pay for items that never arrive or receive goods that are significantly different from what was advertised. Sellers, on the other hand, might receive overpayments with a request to refund the excess amount, only for the original payment to be canceled or revealed as fraudulent.
How to Protect Yourself:
- Always use payment methods that offer buyer protection. Avoid wiring money, sending gift cards, or using other untraceable payment methods.
- Be skeptical of deals that seem too good to be true or sellers who create a false sense of urgency to rush the sale.
Additional Tips for Staying Safe
- Always take a moment to pause and think before acting on any request for money or information. This “power of pause” can be crucial in avoiding scams.
- Educate yourself and stay informed about the latest scam tactics. Scammers evolve their methods frequently, so keeping up-to-date can provide essential protection.
What to Do If You Suspect a Scam
If you think you or a loved one has fallen victim to a scam, it’s important to act quickly:
- Contact your bank or credit card company to report the fraud and protect your accounts.
- Report the scam to local authorities and the FTC at ReportFraud.ftc.gov to help prevent further victimization.
It’s vital not to feel embarrassed or ashamed if you have been scammed; these schemes are incredibly sophisticated and designed to deceive. Awareness, education, and a healthy dose of skepticism are your best defenses against these financial predators. By staying informed and cautious, you can help safeguard your finances and enjoy your retirement with peace of mind.
