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Rising Epidemic: Elderly Fraud Soars in America, Targeting Vulnerable Seniors - Part 1
07//23
Protecting people from fraud is a cause close to my heart. My motivation comes from personally witnessing the devastating impact of fraud on victims. While working at a Texas police department, I had the privilege of assisting officers with Spanish translations when victims came to make reports. Overcoming language barriers and helping these individuals was always a fulfilling experience.
Imagine losing $20! What are you going through? All the stops you made from the bank to taco bell, or you check the pockets of the jeans you wore yesterday. Now imagine losing $1.7 billion of your hard-earned money. In 2021, the Federal Bureau of Investigations reported that 92,000 victims over 60 suffered a staggering loss of $1.7 billion due to fraud. It's not just about the money - the emotional and psychological toll is immense.
Let me share a story to illustrate the nature of one of these scams. (For privacy reasons, the names in this article have been changed.)
This victim received a call claiming they had won an iPad tablet as part of a drawing. Eager and excited about winning an iPad, the victim gave their personal information to the caller. The scammer then asked for names and numbers of people to be included in the next drawing. A few days later, a tablet arrived in the mail, but it was not an iPad - it was an Android tablet. Nevertheless, the victim was thrilled to receive it and used it happily for a couple of days until another call came.
This time, the scammers informed the victim that they were being sued for not paying for the free tablet's software. The victim told them they had never received information about the cost of obtaining the tablet. Manipulating the victim's fear, they recommended hiring a lawyer or using one provided by them. The victim agreed and had a "lawyer" appointed for a small fee. Later, another scammer posing as the victim's lawyer called.
The imposter lawyer informed the victim that they needed to appear in court in person. The victim, having a full-time job and being a single mother, could inform them that this would not be possible. The imposter lawyer told her that if she couldn't travel to Washington D.C., she could pay for someone to stand in her place. The victim sent in a few hundred dollars. The next day, the lawyer (scammer) called, claiming that the charges had been dropped. However, they convinced the victim to countersue the company. Feeling victimized, having lost her money and money borrowed, the victim agreed.
The fake lawyer called again, stating that the countersuit had succeeded and a substantial payout was expected. However, since the victim had been absent from court, they needed to pay a few thousand dollars for the money to be released. Not having any more money of her own, the victim goes and gets a loan from a cash advance business. The victim sent another thousand dollars. A few days later, the lawyer (scammer) called, claiming to have the check but were required to deliver it in person and would need the victim to pay for them to fly to Houston from Washington, DC. The victim agreed, paying for a round-trip flight.
A day passes, and the victim anxiously awaited the call that never came. Finally, the victim received a call from the lawyer (scammer) explaining that they had missed the flight due to a family emergency. They needed more money for another flight since the first one was nonrefundable. The victim realized the truth at that moment - she had been scammed. A total of $18,000 had been sent to the scammers. The money she took out of her savings, money she borrowed from her oldest daughter, who worked two jobs. The money she borrowed from a church member and the cash advanced her business. It was all gone in a matter of three weeks.
When the victim brought the money order receipts to the police station, they discovered that the address provided by the scammers was in Peru. Scammers often do this to avoid U.S. jurisdiction and quickly transfer the money elsewhere.
This story is just one of many similar cases. Scammers are quick and professional, making a living out of exploiting others. Remember, if someone asks you to make a payment with a gift card or send money to another country - don't do it.
In this one type of fraud from 2021-2022, this sweepstakes scam affected 4995 elderlies who lost over $100 million.
The FBI has a few tips to help avoid these particular types of fraud.
· Recognize scam attempts and end all communication with the perpetrator.
· Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
· Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
· Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
· Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
· Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
· Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
· Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
· Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.
Reference:
FBI 2021 Elder Fraud Report https://www.ic3.gov/Media/PDF/AnnualReport/2021_IC3ElderFraudReport.pdf
FBI 2022 Elder Fraud Report
https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3ElderFraudReport.pdf
Imagine losing $20! What are you going through? All the stops you made from the bank to taco bell, or you check the pockets of the jeans you wore yesterday. Now imagine losing $1.7 billion of your hard-earned money. In 2021, the Federal Bureau of Investigations reported that 92,000 victims over 60 suffered a staggering loss of $1.7 billion due to fraud. It's not just about the money - the emotional and psychological toll is immense.
Let me share a story to illustrate the nature of one of these scams. (For privacy reasons, the names in this article have been changed.)
This victim received a call claiming they had won an iPad tablet as part of a drawing. Eager and excited about winning an iPad, the victim gave their personal information to the caller. The scammer then asked for names and numbers of people to be included in the next drawing. A few days later, a tablet arrived in the mail, but it was not an iPad - it was an Android tablet. Nevertheless, the victim was thrilled to receive it and used it happily for a couple of days until another call came.
This time, the scammers informed the victim that they were being sued for not paying for the free tablet's software. The victim told them they had never received information about the cost of obtaining the tablet. Manipulating the victim's fear, they recommended hiring a lawyer or using one provided by them. The victim agreed and had a "lawyer" appointed for a small fee. Later, another scammer posing as the victim's lawyer called.
The imposter lawyer informed the victim that they needed to appear in court in person. The victim, having a full-time job and being a single mother, could inform them that this would not be possible. The imposter lawyer told her that if she couldn't travel to Washington D.C., she could pay for someone to stand in her place. The victim sent in a few hundred dollars. The next day, the lawyer (scammer) called, claiming that the charges had been dropped. However, they convinced the victim to countersue the company. Feeling victimized, having lost her money and money borrowed, the victim agreed.
The fake lawyer called again, stating that the countersuit had succeeded and a substantial payout was expected. However, since the victim had been absent from court, they needed to pay a few thousand dollars for the money to be released. Not having any more money of her own, the victim goes and gets a loan from a cash advance business. The victim sent another thousand dollars. A few days later, the lawyer (scammer) called, claiming to have the check but were required to deliver it in person and would need the victim to pay for them to fly to Houston from Washington, DC. The victim agreed, paying for a round-trip flight.
A day passes, and the victim anxiously awaited the call that never came. Finally, the victim received a call from the lawyer (scammer) explaining that they had missed the flight due to a family emergency. They needed more money for another flight since the first one was nonrefundable. The victim realized the truth at that moment - she had been scammed. A total of $18,000 had been sent to the scammers. The money she took out of her savings, money she borrowed from her oldest daughter, who worked two jobs. The money she borrowed from a church member and the cash advanced her business. It was all gone in a matter of three weeks.
When the victim brought the money order receipts to the police station, they discovered that the address provided by the scammers was in Peru. Scammers often do this to avoid U.S. jurisdiction and quickly transfer the money elsewhere.
This story is just one of many similar cases. Scammers are quick and professional, making a living out of exploiting others. Remember, if someone asks you to make a payment with a gift card or send money to another country - don't do it.
In this one type of fraud from 2021-2022, this sweepstakes scam affected 4995 elderlies who lost over $100 million.
The FBI has a few tips to help avoid these particular types of fraud.
· Recognize scam attempts and end all communication with the perpetrator.
· Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
· Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
· Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
· Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
· Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
· Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
· Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
· Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.
Reference:
FBI 2021 Elder Fraud Report https://www.ic3.gov/Media/PDF/AnnualReport/2021_IC3ElderFraudReport.pdf
FBI 2022 Elder Fraud Report
https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3ElderFraudReport.pdf