Complex, sophisticated scams target elder adults

by Mike Haubrich, CFP®

Sadly, I think we’ve all felt it at one time or another. That horrible, sinking feeling when we realize that we’ve been the victim of a scam. Perhaps the most frightening thing is that thanks to technology and near unlimited resources for researching information on would-be targets, scams against elder adults are becoming more complex and sophisticated all the time. 

I know we’ve shared this topic many times over the years. But I’m asking you to please take a few minutes and read this article. In the past two months, several of our very aware, very capable, very intelligent clients have found themselves in the horrible position of being victims of scams that are different in nature than those of the past. 

While I have heard of many scams—online and in-person—every now and then there is one manically well-planned and executed that defies imagination. It’s estimated that $2.9 billion is lost annually by older Americans due to online fraud alone. While that’s a big number, it somehow seems perversely low, considering how often I hear tales of nefarious crooks up to seemingly unstoppable no good. 

Scammers continue to evolve their cons to incorporate higher emotional triggers like fear, doubt, humiliation, intimidation, trust, greed, panic, and more. Some involve multiple players stepping out from behind computer screens where historically these cowards once lurked. 

Scams are evolving

Today’s scammers are emboldened. They are increasingly fearless as they get away time and again with their life-altering deeds of destruction seemingly without punishment or consequence. The wake of broken dreams, obliterated retirement plans, damaged emotional well-being and sense of security they leave behind cannot even begin to be calculated.  

Older adults are particularly vulnerable to online and in-person scammers for a variety of reasons. Many come from a kinder, gentler time where politeness, civility, and respect for authority ruled the day. They are more likely to open the door for strangers, answer a call from an unrecognized phone number and be reluctant to hang up on someone, and believe whatever anyone claiming to represent authority (police, government agency, tech support, etc.) says. 

Often elders aren’t as tech savvy as their more youthful counterparts, and certainly nowhere near as sophisticated with technology as the scammers. They may not be familiar with recognizing phishing emails, spoofed websites, or fake apps. They may not know how to adjust privacy settings on apps often used by grandchildren like Facebook, Instagram or more trendy ones like TicTok or Snapchat. And often, they are less confident questioning things that seem official or “just the way they’re done” which makes online deceptions easier. 

Scammers are not fools. They are crooks who know how to get information and use that information. They also know that many older adults are likely to have accumulated more assets like retirement savings and home equity and are likely to be collecting pensions or Social Security. These hard-earned benefits that come with being an elder also put them at greater risk. 

And perhaps one of the greatest vulnerabilities elders have, increasing their risk of becoming a victim of an on-line or in-person scam artist, is fear of appearing incompetent, feeling embarrassed, or being judged by others. Some are afraid they will lose control of their financial decisions (and perhaps there’s a season even for that, but more on that at a different time). All of these negative emotions are used by scammers to keep their victims from asking too many questions or remaining silent even after the fraud has been completed. 

The rise of impersonations, false identities, and coordinated teams

Scammers today are using artificial intelligence to impersonate voices and faces of loved ones or authority figures to try (and often succeed in) tricking elders into action. Emails and website spoofs are undeniably convincing and are sometimes downright impossible to tell from the real thing. And, emotional manipulation intended to trigger elder adult’s fears (loss of affection, losing Medicare/Social Security, being arrested or having someone they love get in trouble) is sickening and morally reprehensible.  

I was horrified to learn that some scammers are working in coordinated “teams” in which each member has a role – impersonating a government official, for example, offering credentials that can be validated online (using an actual site or a convincing profile that is created by another member of the crooked team). There are “drivers” who offer to take or follow victims to pick-up or drop-off locations involved in various scams. There are even innocent merchants who are unwittingly and unknowingly involved in the scam just because of the line of work they legitimately do. There are people assigned to watch the victims so they are alerted if they become suspicious and notify police. 

Others research potential victims, scanning social media accounts, or other publicly available information—looking for anything that could be useful in building a story that can lead their victim to take immediate action. They monitor for recent (or current or planned) travel plans, celebrations, milestones, and other outings. Often, they find information on their victims or their loved ones such as names, addresses, children, schools, etc. on people search or data broker websites such as Spokeo, BeenVerified, TruthFinder, PeopleFinders, Intelius, FastPeopleSearch, FamilyTreeNow, and others. And they use any or all available information to help build confidence with their victims by “knowing so much about them.” 

If you’re interested in learning how to remove your information from websites like those mentioned above, please send a note to Katie@ToYourWealth.com with the subject line OPT OUT and we’ll work on a future article with ideas on how to do that.

Here are just a few things you can do to help avoid becoming a victim (courtesy, in part, of ChatGPT open AI) 

Top 5 Ways to Avoid In-Person Scams 

• Don’t open the door to strangers. (Also don’t answer phone calls from numbers you don’t recognize or automatically return phone call messages with dire warnings, threats of legal action, or from any phone number you don’t know.) 

• Never pay for services “on the spot.” Avoid hiring contractors or repair people who show up uninvited. After a recent hail storm, Tami told me two roofing contractors showed up at Wittbrich Acres and said “you have a beautiful house here ma’am, with the recent hail storm I’m sure you want to make sure there’s been no damage to your roof and we can tell you right now just how bad it is.” They made a quick exit when my son Jason, who happened to be there at the time, stepped from behind Tami and added his questions to her own. 

• Say “No” to high pressure tactics especially if someone is posturing as representing some type of official capacity. No real official will demand immediate decisions or secrecy. If someone tells you you’re not allowed to talk to anyone about what they’re telling you, it’s a RED FLAG! End the interaction immediately and contact the actual agency they say they’re representing (not what’s on their business card – that could be faked as was the case for one of our clients).  

• Protect your personal information. If someone, or anyone, asks for this type of information, tell them you will call their organization directly to provide whatever information is needed but that you will not give it to an unrecognized caller. 

• Stay in touch with people you trust. Talk to a family member, friend, or advisor BEFORE making any financial commitments or purchases. Social isolation makes it easy for scammers to manipulate you. Stay socially connected – they don’t like that. 

Top 5 Ways to Avoid On-Line Scams 

• Never click suspicious links, or pop-ups. Never use a link to a bank or financial institution – always type in the known URL for that location in the navigation bar. 

• Use strong, unique passwords and two-factor authentication. Don’t reuse passwords across multiple sites – it’s easy to do because it’s convenient, but it’s even easier for scammers to get access to your information. 

• At risk of making you paranoid, be paranoid about any unsolicited emails, calls or messages. No bank, government agency (Social Security, Medicare, law enforcement) or tech company will ask for sensitive information via email or phone. If someone is asking you for such information, they could be up to no good. Even if they’re harmless, it’s better to be safe now to avoid being sorry later. 

• Keep your devices updated and secure. Update your computer, phone, and antivirus software whenever prompted. Do not allow remote access to any of your devices unless YOU INITIATE the request with a verified support line. If they call you and request access, say NO. 

• Don’t send money or personal info to strangers no matter what story they tell you. Simply hang up, don’t reply, delete the email. They’ll move along to an easier mark, and you’ll save yourself untold grief. Validating that your beloved grandchild isn’t on an island with life threatening injuries and in need of cash to pay a doctor shouldn’t be too difficult. Take a pause and resist the urge to fix whatever crisis the scammer is presenting. 
• Be careful what you chose to share and check your privacy settings. Facebook can be fun. It can also be a great place for unsavory people to find out too much about you. Be smart about what you say, how much you say, and when you say it. Going away on a trip? Maybe save the pictures until AFTER you get back!

Being the victim of a scam is embarrassing, humiliating, and humbling. No one likes to admit they’ve been duped. If you think you are being targeted, call us. Maybe we can help in the moment before you’ve sent or given money to someone or perhaps, we can give you some ideas of what you can do next. DO NOT BE EMBARRASSED OR AFRAID to reach out to us, we are here for you.

For your added protection we have all our clients set up with “Limited Access” on your Schwab accounts, which means you cannot move money out of or place trades in your Schwab accounts, unless you specifically request access to do so. If you’d like to have money transferred to your bank account or place a trade, please call our office. You can view your accounts and balances, digitally approve requests that we send you electronically, electronically approve wire transfers and journals, and you can move money into your Schwab accounts without contacting us.  

Unfortunately, we cannot help protect you from withdrawing money from your bank accounts and giving it to scam artists so learning to protect yourself from them is critical for your financial and emotional well-being. Remember too, that cons work best when they are refreshed. Technology enables crooks to create increasingly sophisticated and believable traps to ensnare highly capable, well-educated, astute individuals. Always be on the lookout.

For more on this topic, take a look at this month’s READ section of WATCH.LISTEN.READ