My father-in-law told me that he recently got a call, and was told, in an urgent tone that his grandson (which is our son) was in jail and needed bail. Upon hearing that, he responded calmly, “Oh, is that so? How many years will he be incarcerated for?” And the scammer hung up without another word. We all had a laugh but we also know many stories where the calls were much more convincing and people, especially older adults, often fall for such scams and loss sometimes thousands of dollars.
According to Federal Trade Commission, 2023 saw the highest ever loss to scams1 reaching a whopping $10 billion dollars of reported losses.
So, how better to protect all of us, especially our elders, from becoming the next victim of these scams? It could be especially detrimental for them to lose their lifelong savings, when they have little to no capacity or time to earn it back. Here are some tips -
- Do not answer/response to calls, text, or emails from strangers, even if they claim to be from an organization or person you know. Some scammers use technology to change the phone number or caller ID, so what you see might not be real. Even if you really think they are legit, don’t share any personal information (such as birthday, social security number, bank account or credit card info, etc.). If you really feel the need to talk with them, find the agency’s official website, and call the number listed on their website. Don’t click on any link, or download attachment, in an email or text if it’s from someone you are not expecting to send you such info.
- Don’t be tricked by big news from a call. They may claim to be from the government (like Medicare, Social Security office, IRS, a bank, the police, a utility company or a tech company), they may say that you owe them money, or you won a price, or that someone is suing you, or you would be arrested for something you have no idea about, unless you pay them right away. Hang up the phone! You can call such entities with their contact number on their official website if you are truly concerned. But chances are, they are scams.
- Romance scams. Many seniors feel lonely and want to have someone to talk to. And when they get an unsolicited email/text that often sounded warm and flattering, chances are it could be the start of a romance scam. They aim to gain your trust and then use some emergency or excuse to ask money. Don’t fall for such scams!
- Ever got some bold flashes on your screen saying your computer/tablet was infected with a virus and you had to call the number listed on that screen right-away? That’s typically the start of a tech-scam! Close your internet browser right away, turn off your computer. Wait for a few minutes before turning it on again. If you worry about a virus infecting your device, take it to a local computer repair to have it looked at. Don’t call those numbers on the flashing screen!
- A great investment opportunity? You’ve won? Or received a check in the mail? If such “great news” come from a stranger, it’s likely the start of a scam. Don’t try to deposit/cash a check nor should you send a stranger a check just because they say they’ve given you more – because those are not real. Don’t fall for it!
- Got a call with a dire situation of a loved one from a number you don’t know? Claiming your loved one was kidnaped, or injured, and need money from you right away? Hang up the phone! Call your loved one directly, or someone who live with them to verify first. Chances are, they are going about their normal daily activity just fine. If all fails, call the police but don’t send money under such pressure.
The bottom line? Stop! And talk to someone you trust. Before you do anything else, tell someone – a friend, a family member, a neighbor about what happened. Talking about it could help you to realize it’s a scam.
1 From https://consumer.ftc.gov/system/files/consumer_ftc_gov/pdf/CSN-1pager-2023-508.pdf
ART case # 580561-1
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, and CERTIFIED FINANCIAL PLANNER™ in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.
LPL Financial and the CFP® Board are not affiliated entities.