False alarm, real scam: Protect your life savings from scammers
Source: Federal Trade Commission
With prices rising on everything from housing to groceries, older adults must stretch their dollars – and cents – further than ever before. Scammers and fraudsters threaten the safety and financial security of people on fixed incomes.
Reports to the Federal Trade Commission (FTC) show a growing wave of scams aimed squarely at retirees’ life savings. Older adults reported $2.4 billion in fraud losses in 2024. That’s a huge jump from $600 million in 2020.
These scammers pretend to be from known and trusted government agencies and businesses. Recent scams use fake security alerts and other false alarms to prey on older adults’ vigilance about protecting their money and identity to steal from them. Some older adults have reported that their bank accounts were emptied, including their 401(k) accounts.
These high-loss scams typically start with an elaborate fake story that gets your attention. These stories often use one or more of the following lies.
Someone is using your account. This lie might start with someone pretending to be from your bank, flagging so-called suspicious activity. Or they might pretend to be Amazon with a message about an unauthorized purchase.
Your information is being used to commit crimes. This lie may come from a supposed government officer or agent. They warn that your Social Security number is linked to a crime, like drug smuggling, money laundering or even child pornography.
There’s a security problem with your computer. This lie of ten starts with a fake on-screen security alert that looks like it’s from Microsoft or Apple with a number to call. If you call, they say your online accounts have been hacked.
Scammers will say the only way out of the fake crisis is to follow their instructions. It will include sending money (to the scammer). They claim it will keep your money safe, secure your identity, clear your name or help catch the criminals.
There may be layers of complexity to the story. But it’s all a lie aimed at draining your accounts. When people think they are fixing a problem rather than sending a stranger money, their losses are often limited only by their available funds.
Lots of scams are now carried out online. But many still involve a phone call. Even when they don’t start with a call, reports show the goal is to get you on the phone. A call is still the best way to dial up the fear and the urgency. That way, it’s harder for you to think clearly and check things out. Keeping you on the phone is also designed to keep you from talking to anyone who could help. Often a friend or family member in a calmer state of mind will see through the lies.
In another layer, scammers of ten pretend to be with the FTC, the nation’s consumer protection agency. Sometimes, they impersonate real staff. Reports show these scammers have told people to transfer money out of their accounts, deposit cash into Bitcoin ATMs, and even hand off stacks of cash or gold to couriers. These are all things the real FTC will never do.
Scammers also pretend to be other businesses and agencies. These include banks, Microsoft and the Social Security Administration. Often, they double up efforts. Maybe, it starts with a pop-up security alert on your computer impersonating Microsoft. Then, you are transferred to someone pretending to be from the FTC for “help” with a fake identity theft problem.
The security of your accounts, along with the risk of identity theft, are real concerns that real companies might call you about. So, how can you stay alert and steer clear of these scams?
Don’t move money to “protect it.” Never transfer or send money in response to an unexpected call or message. Even if they say it’s to “protect it.”
Hang up and verify. Hang up the phone and call the company or agency directly using a phone number or website you know is real. Don’t trust what an unexpected caller says. Never use the phone number in a computer security pop-up or an unexpected text or email.
Block unwanted calls. Learn about call blocking options to stop many of these scammers before they reach you.
To help spot and avoid scams – and learn how to recover money – call visit www.ftc.gov/scams. Report scams to the FTC at 1-877-FTC-HELP (382-4357) or www.ReportFraud.ftc.gov.
Older Philadelphians who experience financial exploitation, or another form of elder abuse, can contact PCA’s Older Adult Protective Services. Elder abuse reports can be made 24/7 by calling the PCA Helpline at 215-765-9040.
