September 2022
Financial Planning

According to the Federal Bureau of Investigation (FBI), in 2021, there were 92,371 older victims of fraud resulting in $1.7 billion in losses. This was a 74% increase in losses compared to 2020. Unfortunately, it may be even more than that. It’s hard to truly understand how widespread fraud is because the data is often underreported. It’s important to protect yourself and your loved ones by being able to identify a scam or fraud and know what to do if something happens.

There are many types of fraud out there and it would be impossible to go over every single one that’s been reported. We are going to take a deeper dive into the top five scams that are targeting adults. If you want additional information on current scams, there are multiple websites that you can check out: Fraud.org,  IC3, Consumer Finance Protection Bureau, and FBI.

1.     Government impersonation scams — A scammer will call pretending to be from a government agency, like the IRS, Social Security Administration, or Medicare. Right now, there have been reports of multiple different tactics that scammers use to either get personal identifying information or some form of payment. They may say the victim has unpaid taxes and threaten arrest if they don’t pay up immediately or that benefits will be cut off if the victim doesn’t provide personal identifying information. Be extra careful because the scammers may even “spoof” their phone number so it shows on caller ID from a government agency!

2.     Sweepstakes and lottery scams — A scammer will call and tell the victim that they've won the lottery or a prize and to claim their winnings, they must send money up front to cover fees and taxes. Many of these scammers will continue to call for months and even years.

3.     Robocalls and phone scams — One of the most common robocalls is the “Can you hear me?” call. When the victim says “yes,” the scammer records their voice and hangs up. This recording can then be used as a voice signature to authorize charges or withdraw funds from certain accounts. Other common calls are the robocall claiming that a car warranty is expiring, and a payment is needed now to renew it or that there is an “impending lawsuit” and if a fee is not paid immediately, it will lead to an arrest or being sued.

4.     Computer tech support scams — A pop-up message or blank screen will appear on a computer or phone and states that the device is damaged and needs fixing. When the victim calls the support number for help, the scammer may either request remote access to the device or demand a fee to have it repaired. It’s important to remember that tech support will never proactively reach out to fix an issue.

5.     Grandparent scam — There are multiple versions of this scam: either the scammer pretending to be a grandchild with an urgent request for money or pretending to be a police officer, doctor, or lawyer that is helping a grandchild. This scam tugs on the heartstrings and plays with the victim’s emotions, which can result in funds being sent quickly.

Other noteworthy scams are romance scams, investment scams, Medicare scams, email fraud, phishing text messages, and, most recently, COVID-19 scams.

Now that we have outlined some of the more common scams, it’s important to know what to do if you think you are being targeted for a scam and how to protect yourself. Remember these tips:

  • Keep your personal information secure. You can do this by setting the highest level of security on any online accounts (including social media), shredding documents before putting them in the trash and not giving anyone your Social Security number, birth date, or financial account numbers, especially over the phone or internet.

  • Always ask for detailed information if someone proactively contacts you and look it up before providing any personal information or sending funds (representative’s name, the organization’s address, and phone number, etc.).

  • Never make an upfront payment to someone who proactively reached out to you for a promised prize or service you didn’t request, especially if you are required to make immediate payment.

  • Be smart about who you connect with and what information you share online. If you think you are getting a phone call or message from a scammer, hang up and don’t respond.

  • Set-up a “Trusted Contact” on your financial accounts. In a lot of fraud cases, the victim is instructed not to tell anyone. Having a trusted contact on file allows your financial advisor or representative to reach out to someone close to you if they notice suspicious behavior (i.e. withdrawing significant amount of funds, wires to unknown accounts, etc.).

Remember, scammers can be very convincing, and they are good at what they do. If you are ever unsure about a situation, talk to your financial advisor for help. One of the benefits of having an advisor is having a second set of eyes and a different perspective look at the situation, which can make the difference on being able to avoid potential scams. If you do find yourself in the unfortunate situation of being scammed, it’s important that you report it. When you report a scam, authorities can use the information to build cases against scammers, spot trends, educate the public, and share data about what is happening out there.

If you have questions, please contact us.

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