Thieves turn to high-tech to scam seniors
America’s senior citizens face new scams designed to sucker money from them as fraudsters target their computers and smartphones and use social media posts to lend authenticity to bogus kidnapping calls.
Though mail and telemarketing scams remain the biggest ripoffs for older Americans, authorities are con- cerned that online activity and cellphones leave seniors — and everyone else — vulnerable.
The Justice Department announced its largest sweep of elder fraud cases, involving 250 defendants worldwide accused of victimizing more than 1 million Americans, largely seniors, to the cost of more than $500 million. The Federal Trade Commission (FTC) recov-
“I’m humiliated. I’m embarrassed. And I’m angry. He kept telling me things I wanted to hear about progress in my case. As soon as I started questioning things, he’d throw out something out there and reel me back in.”
Elizabeth Owens 68, from California, who was scammed out of $36,000
ered about $300 million on behalf of victims last year, and federal prosecutors and state attorneys general are bringing criminal cases.
“Technology has given scammers the ability to reach more people at a lower cost,” said Amy Nofziger, who works for the AARP Foundation and teaches elder fraud seminars. “You can reach millions of people with one hit of a button.”
Overall, scammers extracted about
$1 billion from Americans last year, and
70% of reported fraud began with a phone call, according to the FTC, which said phone-based scams took nearly
$300 million from Americans, while online fraud took $141 million and emailbased fraud $100 million.
Scams involving tech support, online dating and tax refunds are rapidly gaining ground. Although Millennials are twice as likely to be scammed as seniors, they’re less likely to lose as much: Consumers in their 70s lost an average of $621, while victims ages 80 and older lost nearly $1,100. Millennials lost $400 on average, according to the FTC.
Scammers can look up a target’s Facebook page and pretend to be the authorities or a kidnapper in a far-off place demanding money to release a loved one or head off an arrest. Online dating scams target people living alone. That type of scam takes longer and can be financially and emotionally devastating.
Californian Elizabeth Owens, 68, is reeling from a scam that took $36,000 over three months. It started, she said, with a phone call on a Friday afternoon in early December from a man claiming to work for U.S. Customs. He claimed she faced arrest because her name was on a package of confiscated painkillers in another country. The man told her she needed to pay bail money to keep from being arrested.
Owens wasn’t expecting a package and didn’t know anyone abroad, but she said she believed it was all a mistake that would soon get sorted out.
Week after week, “Michael” promised Owens progress was being made, and she needed to pay only small filing fees or put up a percentage of the potential fines to clear her name. Keep the Western Union and Moneygram wire transfer receipts, he told her, because all of her money would be refunded when her name was cleared. He provided her official-looking documents referencing her case and used legal jargon that lent an air of credibility.
“I was strung along, thinking everything was legit,” the former government worker said. “He made me feel like I was part of the team. He befriended me.”
“Michael” demanded confidentiality and told her her phone was tapped and her Internet use was monitored. That’s textbook scammer behavior: Keep the victim off-balance and emotional.
“He was always reminding me how confidential this all was,” Owens said. “I was literally sick to my stomach. You get to a point where you’re just so freaked out you don’t question it.”
Real authorities wouldn’t demand you act immediately or keep things confidential. “Take a deep breath. Take your time,” said Monica Vaca of the FTC.
Owens reported the scam to the FTC, FBI, AARP and her sheriff. She texts “Michael” daily to demand her money back, hoping it annoys him. “I’m humiliated. I’m embarrassed. And I’m angry,” she said. “He kept telling me things I wanted to hear about progress in my case. As soon as I started questioning things, he’d throw out something out there and reel me back in.”