Senior Phone Fraud

Subverting Scammers

By Nik Edlinger on Sep 18, 2019 in News

“We’ve found fraud on your taxes. This is the IRS. If you don’t pay, you’ll be arrested by the cops.”

Sound familiar?

If you have a cellphone, chances are you’ve had a call from a suspected scammer. The one where a robotic voice warns you of your expired insurance, an error on your taxes or a bank loan gone bad. Situations that demand you act immediately – if they weren’t false pretenses designed to fleece you out of your money.

Screening and ignoring unknown callers are the best way to avoid fraudulent scams, and some service providers are beginning to offer automated screening alerts. But not everyone has the luxury of skipping calls they don’t recognize, and some groups, particularly the elderly, may not even be aware of the risk. And when you factor in a higher likelihood of cognitive impairments, it’s no surprise that older adults are a prime target for fraudsters.

This has led to a growing criminal industry of phone scammers who prey entirely on the elderly. Studies suggest that 1 in 18 older adults face fraud each year, and according to Fraud.org, “more than one in every five complaints received in 2018 came from someone over the age of 65.” That’s a nearly 20 percent increase over the year before, which suggests that scammers are only becoming more aggressive in their targeting.

So what can you do?

The best defense is awareness. By learning the most common phone scams, you can stay safe and ensure those you care for are too. Share these scenarios with your older loved ones so they know what to do if the “IRS” comes calling.

According to the Special Committee on Aging, here are the top phone scams affecting the elderly:

IRS impersonators
This scheme accuses victims of owing back taxes. The only solution is immediate payment. And if the victim meets their demands, the criminals will often say they’ve identified yet another error on the tax records, demanding additional amounts and feeding into a cycle of abuse. The IRS will never call you about taxes owed without first mailing a bill, so rest easy if you get unannounced calls about penalties.

Robocalls

Technology has made our lives easier in a lot of ways, but it’s also created new avenues for con artists. Through Voice over Internet Protocol (VoIP) technology, scammers can now spoof a phone number – that is, make it look like they’re calling from a different number. So even if they’re halfway around the world, the call might still look like it’s coming from your local area code or, worse, an actual government agency. You should never give out personal information on any unsolicited call, no matter how important it may sound. The best course of action is to hang up and call back through an official number listed on your bank statement, the back of your credit card or on the agency’s actual website.

Surprise sweepstakes winner
Who doesn’t want to win the lottery? Unfortunately, the odds are always low, and any call suggesting otherwise is the definition of “too good to be true.” In this scam, fraudsters say that the victim only has to take a few more steps to claim their supposed winnings, which of course involves paying money upfront to cover the processing fees and taxes. Even more insidious, victims are often told not to share the good news with family members so as not to ruin the surprise.

Computer tech support

With so many high-profile cyberattacks in the news, it’s easy to see why a call about viruses infecting your computer would be concerning. The fraudster pretends to be a support representative from Microsoft or Norton or any other big tech company, saying they can help clear things out – for a price. They then convince their victims to grant remote access to their computers, which leads to stolen personal information or real viruses being installed. If you’re concerned about your computer security, always contact the company yourself.

Emergency call from a “relative”

This one works by playing on the heartstrings. Known as the “grandparent scam,” a con artist calls a victim, pretending to be a family member in distress or someone who represents them (think lawyer or police officer). The relative needs money for bail, hospital bills or another urgent issue, and they desperately don’t want the rest of the family to know. The scammer doesn’t offer up a name, instead waiting for the victim to guess who is calling. Authorities recommend that you ask a personal question to prove identity first or simply hang up and call their regular number back.

Resources for those affected

Think you or someone you know might’ve been the victim of a scam? You should inform local law enforcement and report it at Fraud.org. You can also call the Senate’s fraud hotline toll-free at 1 855 303 9470. Don’t let embarrassment or fear of others finding out prevent you from taking action. Only by speaking up can we help put these scammers behind bars.