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While checking her email in August, Deb (she prefers to not reveal her last name), was alarmed to see an email she had received that looked suspiciously like it came via PayPal. PYPL, +1.50% The message claimed that someone had accessed her PayPal account to take $500 from her linked bank accounts.
Deb, a retired South Carolina business owner, called the number in the email immediately to rectify the problem. She said that the person was extremely professional.
He told Deb that he needed information to reimburse her money, including access to her computer. That raised some red flags. She said that she had had remote computer work done, and that they needed to be able to assist me.
Deb gave up her bank account information, social security number, and passwords over the next two hours. She became suspicious and requested to speak with a manager. A second man answered the phone. Deb said that I believed I was talking to PayPal.
The man behind PayPal
The man suggested that she install an app to her phone. Deb said that when she saw the $340 transaction through her phone, he advised me to not worry and that it wasn't meant for me. To get my money back, he told me to go to Walmart WMT +0.73% and purchase a $500 gift certificate. It was then that it clicked. The man then hung up and I told him, "I think this is a scam."
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Deb was shocked to learn that the $340 had been transferred from her bank account to the scammers. She said that she felt stupid, inept, and violated.
Unfortunately, she is in good company. There are a lot of similar phishing scams targeting older adults via email and phone calls. The scammers claim to be from Amazon or PayPal. AMZN, +1.27% and others claim they are tech support for Apple AAPL, +0.63% or Microsoft MSFT. They may claim they are from the Social Security Administration, IRS, or another government agency.
In 2020, the Federal Trade Commission received over 2.1 million fraud reports. This is an increase of 24% from 2019's 1.7 million. Last year's total losses were $3.3 billion. The agency also witnessed 67,000 tax-related frauds in the first half 2021. According to the FBI, cybercrime has increased 69% between 2019 and 2020.
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Partly, you can blame the pandemic. We are more vulnerable because of lockdowns. They know what we want and prey upon that, according to Alexis Abramson (gerontologist, Comfort Keepers Home Health spokesperson in Atlanta, and author of Stop Fraud).
Abramson stated that older adults are targeted because they are more trusting, and are usually financially stable and have good credit.
Richard Eisenberg, Next Avenue's Managing Editor, hosts a podcast called Friends Talk Money that features these types of frauds. You can listen to it wherever podcasts are available.
Terry Savage, Friends Talk Money cohost, said that scammers call, text, and email people with fear and urgency. He is also a columnist and author on personal finance. Pam Krueger, co-host of podcasts, said that scammers are getting smarter, making it difficult to discern what is real.
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The rise of scams
Abramson claimed Deb was the victim of a sophisticated email scamming scheme. These types of scams used to have misspellings and grammar mistakes. She noted that they have become more sophisticated in their language, and even their logos.
One of these scams took the victim's father, whom she describes as a brilliant retired doctor, by surprise.
And, Abramson said, Debs embarrassment isnt unique. She said that only one in four victims of fraud tell their family members.
Abramson stated that reformed scammers have told me they were taught how to market themselves, how to anticipate the reaction of their target and what questions they might ask. Victims of scams should contact someone who can help.
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Ann Martin, Director of Operations at CreditDonkey Personal Finance Website, stated that the best way for you and your loved ones to be safe is to learn about the latest scams.
Martin said that family members should make an effort to reach out to seniors in their lives and teach them cybersecurity etiquette. Many online courses will teach you how to spot a scam and prepare you for cyberattacks.
Abramsons advice on how to avoid being scammed
If you are expecting it from someone close to you, never click on any link in an email. It is best to not click on any link if you don't know the sender.
You should first respond to any email sent by a company. Visit the website of the company to access your account or call the number from the site to speak with someone about the contents of the email.
Stop answering calls asking for financial information. They want to scare and intimidate you. Tell them to hang up and continue your research.
Register for fraud alerts regarding your bank accounts and credit cards.
If you have been victim to a scam, or someone close to you:
Close or place holds immediately on any bank accounts you use and any accounts that retailers have placed
Notify Equifax EFX (-0.57%), Experian EXPGY (-1.06%), TransUnion TRUE, –0.65%, and place a credit freeze
TransUnion TR, Experian EXPGY and TransUnion TRU put a freeze in your credit. Change all passwords
Be vigilant. Be vigilant if you have been scammed before.
Get in touch with the authorities. FBI Special Agent Siobhan Johnson offered Friends Talk Money this advice: Call the FBI [at 800-CALL-FBI] and ask Is this legitimate? Because nine times out of 10, theyre going to instantly say, No, thats a common scam. For a cybercrime, email the FBIs Internet Crime Complaint Center at the IC3.gov site or the FTCs Anti-Phishing Working Group at reportphishing@apwg.org. You can also report tax-related phishing scams by emailing Phishing@IRS.gov.
Deb stated that she learned a tough lesson from the painful experience. It required her to close her accounts and change her passwords. However, her bank did reimburse her $340.
Kerri Fivecoat-Campbell, a freelance writer and author who lives in the Ozark Mountains, is a full time freelance writer. She is also the administrator of the public Facebook page Years of Light: Living Large In Widowhood. A private Facebook group, Finding Myself after Losing My Spouse, was created to assist widows/widowers in moving forward.
This article was reprinted with permission from NextAvenue.org, Inc. 2021 Twin Cities Public Television, Inc.
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