Individually, older adults admitted to being swindled out of $10,000 or more, sometimes their entire life savings, by these scammers. Reports of this high-tech theft have quadrupled in the past four years.
The FTC analysis indicates that while some younger consumers have also reported scams, older adults were more likely to report higher losses.
According to the report, scams usually involve someone contacting consumers to alert them to a purported problem with a bank account, credit card, tax payment, or computer security. The scammer then tries to persuade the unsuspecting consumer to transfer money to resolve the problem. In reality, the funds are being sent directly to the scammers.
Scams can be initiated online or by phone.
“A call is still the best way to dial up the fear and the urgency, so it’s harder for you to think clearly and check things out,” the FTC stated in the report. “Keeping you on the phone is also designed to keep you from talking to anyone who could help—a friend or family member in a calmer state of mind who might see through the lies.”
The FTC urges all consumers to be aware of anyone calling or emailing about “suspicious activity” on a bank account, Amazon account, or credit card. Consumers should never send money or share bank or credit card numbers and should always call the bank or business to report the scam.
“Contact the company or agency using a phone number or website you know is real,” the FTC stated. ”Don’t trust the phone number or name they provide.”
Another popular scam is when swindlers tell the consumer that their information is being used to commit crimes. Scammers pretending to be government officials often warn unwary targets that their Social Security numbers are being compromised. Again, the scammer will ask for a payment to “protect it.” The FTC suggests hanging up and blocking the phone number.
A third scam often used is a fake computer screen security alert that appears to be coming from Microsoft or Apple, with a number to call. The scammers will then claim that the online accounts have been hacked and that a payment is needed to fix the problem. The FTC recommends deleting the alert and reporting the incident to your software provider.
“Ironically, some scammers even pretend to be with the FTC and tell people to transfer money out of their accounts, deposit cash into Bitcoin ATMs, and even hand off stacks of cash or gold to couriers—actions the FTC would never ask people to do,” the report stated. “Regardless of the fake story, the goal is generally the same: to get your money.”
