Cybercriminals are getting craftier and cleverer. It’s their full-time “job” to deceive, exploit and victimize consumers.
Online scams can happen to anyone—even those who consider themselves too smart to get duped. According to the FBI Internet Crime Complaint Center (IC3), $3.4 billion in total fraud losses were reported by people over age 60 in 2023, up 11% from 2022. The most shocking number? The average loss per scam victim: Nearly $34,000.1
“The retirement security of Americans across the board is at risk,” said Christine Kieffer, Senior Director of the FINRA Investor Education Foundation, during a panel at the National Council on Aging’s Age + Action 2024 Conference. “And we have international crime syndicates behind a lot of the scams that are growing. This is a problem that needs everybody’s attention.”
How are psychological tricks used in payment scams that target older adults? Below are the top five.
1. Targeting those who are socially isolated
How to protect yourself: If you’re unsure about the person you’re talking to or what you’re being told, ask a friend or family member for advice before taking any further steps. Sending a quick screenshot of a text, or simply walking through the scenario with someone you trust, can often help you see things more clearly.
2. Posing as an authority figure
How to protect yourself: The first step you should take is confirm whether a company or agency trying to reach you is legitimate. This can be done by hanging up and contacting them using phone numbers or email addresses listed on their official website. If there is a problem you need to address, they will be able to help. Other tips for avoiding this type of payment scam include:
3. Impersonating a trusted organization
How to protect yourself: As with other imposter scams, it’s important to practice healthy skepticism. Look out for red flags like poor grammar and spelling and strange-looking links shortened with bit.ly or a similar service. Any requests for payment via cryptocurrency, online payment apps, prepaid debit cards, or gift cards are suspicious since these are telltale signs of a scam.
If you think a communication you receive may be valid, verify the information by checking with official trusted sources (e.g., calling a phone number found on a company’s website or brochure). Never send money or personal information to someone whose identity you are not able to verify.
4. Creating a sense of urgency or scarcity
How to protect yourself: Don’t be afraid to slow down and ask questions. Give yourself enough time to think through the situation logically, which will prevent you from making snap decisions. It’s also important to harness your inner skeptic. If a product you want is being offered at a suspiciously low price, ask to see it in person and get a service contract to protect yourself, if applicable. Bottom line: If something seems too good to be true, it probably is.
When you do buy products online, make sure you only use a payment option that offers reimbursement for authorized payments, such as most major credit cards. Using a form of direct payment, such as a payment app, is essentially the same as sending cash. You may not be able to receive a refund.
5. Tapping into the desire to help others
How to protect yourself: In any scenario where you’re being asked for money or personal information, take a moment and ask, “Why?” If you’ve been contacted out of the blue, you want to first verify the call is coming from the person the caller is claiming to be. Hang up and call back from your saved phone number of the contact, or email from a saved address to avoid typos.
If you do send money to someone you know, make 100% certain you’re sending it to the right person – especially if you use a payment app, which does not allow cancellation. Double-check that you have their correct information before you make the transaction. Above all, don’t send money you’re uncomfortable losing or outright cannot afford to lose. It’s important to remember that someone who truly cares about you would not put you in the position of putting your finances at risk.
The strategies above can help you spot scams early on. But what if it’s too late?
Report the scam. Contact these reputable resources that allow you to make a report online:
Contact SMP Hawaii for more information and to volunteer to help Swat Those Scams! Our mission is to empower and assist beneficiaries, families and caregivers to prevent, detect and report healthcare fraud, errors and abuse through outreach, counseling and education. SMP Hawaii can offer referral service and support for non-healthcare fraud and scams. Call 1-808-586-7281 on Oahu; toll free 1-800-296-9422; email: info@smphawaii.org
visit: www.smphawaii.org
1. Federal Bureau of Investigation Internet Crimes Complaint Center. Elder Fraud Report 2023.
