If you’ve been the victim of financial fraud, you probably feel embarrassed or ashamed. But the truth is, you’re not alone. It is estimated that Americans lose an average of about $19 billion per year to scammers, and that number continues to rise every year.
These crimes often target older adults. Senior citizens tend to be a preferred target for scammers. Some are often uncomfortable with technology, which makes them even more vulnerable. Finally, because seniors tend to own their own homes and have good credit, they are perceived by scammers to have wealth worth the trouble of taking.
I have had of clients fall victim to scams like these. Sometimes the scammer manages to get hold of their bank account, wreaking havoc on their finances. Even a close relative became a target for financial fraud when a scammer posed as a tech support person and used his computer to hack into his bank account.
When it comes to avoiding scams like these, knowledge is power.
To that end, here’s what we know about common scams and how to protect yourself against them.
How To Protect Yourself Against Scams
First of all, if you think you’ve been the victim of a scam, be sure to report it right away. In spite of any embarrassment you might feel, take comfort in the knowledge that such scams happen all the time.
Notify the local police as well as your financial institution. You can also notify the Adult Protective Services Association for help.
But before it gets to this point, take every precaution to avoid fraud scams. Search online for the contact information of anyone who seems suspicious. In many cases, you may find that others may have posted information about the scammer to alert other potential targets. Do not cave into a sense of urgency, since perpetrators often pressure you into acting fast. Be wary of cold calls or door-to-door visits from strangers. And most importantly, learn to recognize common scams and break off contact with the perpetrator as soon as you suspect them.
Common Scams
One common trick used by scammers is the romance scam, where perpetrators use social media sites or dating apps to prey upon lonely people. The victim may end up sending hundreds of thousands of dollars to the fake love interest before the fraud is discovered.
There is also a common tech support scam when you unexpectedly encounter a pop-up window claiming that your device needs to be fixed and providing a phone number. Once you call that number, the scammer may gain control of your computer, effectively holding it for ransom until you pay a fee. They might even use your device to hack into your bank account.
Another popular hoax is the grandparent scam. Here, a scammer might call an older adult pretending to be a child or grandchild in desperate need of financial help. They ask, “Do you know who’s calling?” and once the grandparent responds with the name of one of his/her grandchildren, the scammer persuades them to send money via MoneyGram or Western Union.
When it comes to financial fraud, prevention and awareness make a huge difference. Be wary of interactions via phone or online. And if you have any doubts at all, break off contact and alert the authorities right away.
