We’re going to start off by recalling a somehow sad story, but it fits our purpose. If anyone asked Phyllis Weisberg, she’d tell you that getting scammed online wasn’t part of her monthly plans. After all, just like us, she was a trusting soul who truly believed most people are good and honest.

However, after she accepted “help” from thieves posing as some tech guys, the unsuspecting 90-year-old was immediately defrauded of $20,000. Well, Phyllis isn’t alone in this plight. Oh no, far from it. Fresh data from the Federal Trade Commission (FTC) showed that consumers lost over $10 billion to fraud in 2023, which is the first time registered losses rose so high.

Older people are particularly vulnerable to online scams. In fact, according to the FBI Internet Crime Complaint Center (IC3), about $3.4 billion in total fraud losses were presented by Americans over age 60 in 2023, which is up 11% from 2022.

Well, the average loss per case was almost $34,000. The question is why are seniors at a much higher risk for scams? Even if many can barely make ends meet, scammers could believe they have quite ample retirement savings sitting in their bank accounts.

Well, some older adults could be more trusting by nature, and some also possess cognitive issues that could make them prone to exploitation. Besides, many live alone, with virtually no one to help manage their own money. According to Soo-Lynn Getz, renowned director of Fraud Prevention at Zelle, it’s fairly important for older adults to keep being diligent when it comes to understanding what types of tricks are lurking out there.

As a matter of fact, when older adults are purposefully seeking and sharing knowledge on how current scams are perpetrated, along with all the red flags you should look for, this slowly builds the ability to reflect on the situation while it’s still taking place, but also to pause and reflect.

But come to think about it, the power of that pause could easily support an older adult in stopping all the emotional upheaval to act without thinking of the consequences.

Well, criminals who target the older adult population are, unfortunately, constantly working on their tactics, especially regarding social engineering and ingenious phishing techniques that are meant to convince anyone.

As Abigail Bishop, Head of External Relations for Scam Prevention at Amazon, stated, “Scammers are so smart. They keep a pulse on all the ways in which reputable organizations communicate with their consumers, and they also replicate those communications through all kinds of channels.”

Top online scams targeting older adults

Financial scams might come in many forms, but there are some types that zero in older adults. Here are some of the most common ones:

Imposter scams

What’s the imposter scam? Well, it refers to virtually any type of scam where a fraudster tries to trick you by pretending to be someone else, such as a government agent, bank representative, or even a trusted business.

They can even pretend to be someone you know on a personal level. In 2023 at least, imposter scams were often associated with the second highest reported consumer loss amount, that being $2.7 billion.

Imposter scams lean on two main methods of tricking people:

• authority – with this particular technique, scammers can easily take advantage of the fact that some aren’t likely to question authority figures, or they foster a deep-seated fear of the “scary” consequences threatened by the trickster. For instance, scammers could pretend to be your electric or gas company threatening to cut you off your services unless you pay what you owe them, or the IRS and Social Security Administration, or any other government organization telling you that you owe them taxes and fees and threaten you with criminal charges. In the last instance, they could pose as your bank, letting you know there’s an issue with your account and requesting money transfers and account details.
• familiarity – this type of imposter is even more mischievous if you ask me. Bad actors can easily pretend to be a loved one and proceed to pursue you to give them all kinds of sensitive personal information or even send them money through a digital payment platform, whether by write or via check. The scammer, for example, could claim to be your grandchild or any other close family member, stating they are in serious trouble and require immediate emergency financial help. This is generally known as a “grandparent scam.” Or, they can pretend to be romantically interested in you, and start asking you all of a sudden for money or bank account details right after gaining your trust and affection. This is commonly known as “sweetheart scam.”

Online shopping scams

Some online marketplaces, such as Amazon, eBay, Facebook Marketplace, and Craiglist, are commonly used by millions of consumers every single day to purchase, sell, and exchange everything, from clothing to cookware. However, their popularity makes them one of the hotspots for scammers. Both buyers and sellers can easily fall prey to scams in any online marketplace.

As a buyer, you could pay for a product you never receive – or what you got isn’t at all what you expected, based on the product description. Alternatively, the seller could deny you a refund, mainly because you used an unauthorized payment type.

As a seller, you could be contacted and asked to pay a bogus “business account upgrade” fee. Alternatively, you have a buyer who pays you over the expected price. That buyer could ask for a refund of the difference, then cancel the original payment unexpectedly, leaving you without funds.

Fake check scams

A fake check scam can easily happen when a scammer gives an individual a fraudulent check to deposit, and then asks them to send back the money for a bunch of different reasons. Some of the main examples could include responding to an online job for a remote job and being told you are hired. Alternatively, some scammers might pose as a company that contacts you congratulating you for winning something you never intended to win in the first place. Lastly, they could pose as a person who buys in item from you online, then “accidentally” sends you a check for more than what they actually owe you.

Naturally, you might be asking yourself how scammers get away with writing such fraudulent checks. Well, they work as well as they do because, due to modern printing technology, fake checks can turn out to be indistinguishable from the real ones.

What to do if you’ve been scammed

If you strongly suspect being scammed, you shouldn’t feel ashamed. These tricks are meant to catch a person off guard, and they can easily happen to any of us. Instead, you should call a trusted family member or even friend to explain exactly what happened. You can also contact your financial institution as soon as you can, especially if money has been taken from your account. You can also report these scams online to the FTC. As you might not be able to recover the loss, at least you get to share the experience, which could help further similar actions.

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