A recent AARP Study reveals that Americans over 60 are increasingly falling victim to online and phone fraud, resulting in billions of dollars in losses each year. The scammers behind these crimes are becoming more sophisticated in their ploys to deceive victims into handing over large sums of money. Out of the estimated $28.3 billion lost to elder fraud scams annually, a staggering 72% (over $20 billion) is taken by individuals known to the victims, such as family members, friends, or advisers. Unfortunately, many of these scams go unreported. In response to this growing problem, the FBI is urging anyone who encounters suspicious activity online to disengage and report it to law enforcement.
One victim, Rich Brune, a 75-year-old retiree living in Virginia, fell for an online scam last year that cost him nearly $800,000. Scammers posing as Microsoft workers contacted him online, claiming his computer had been hacked and his financial accounts compromised. Over a five-month period, the scammers convinced him to transfer his life savings into a cryptocurrency account that they assured him was safe. However, Brune later discovered that he had been robbed of his nest egg. As a result, he is now faced with owing approximately $200,000 in taxes, as the stolen money was withdrawn from his retirement accounts. Brune is now in a difficult financial situation and may be forced to take out a reverse mortgage to pay off his debts.
Rebecca Keithly, a supervisory special agent in the FBI’s economic crimes unit, stated that older adults are losing the most money to scams. Cryptocurrency-related investment scams targeting older adults alone saw a staggering 350% increase last year, the largest increase among all age demographics and scam types.
The FBI has identified a particular scam known as the Phantom Hacker scam, which starts with a tech support scam. Scammers posing as tech support representatives inform victims that their accounts are at risk of being hacked. They then introduce a second scammer who pretends to be from a financial institution and claims that the victim’s accounts have been hacked. In response to the threat, victims transfer their money to separate accounts under the assumption that it will be safe. However, the scammers quickly drain these accounts, leaving the victims financially devastated.
To gain the trust of their victims, scammers work diligently to collect personal information and money. Victims are often tricked into sharing their Social Security and Medicare numbers, which are then used for fraudulent purposes. The AARP advises seniors to be cautious of calls or texts requesting such sensitive information and to seek help from someone they trust if they suspect a scam.
Reported crime rates targeting older Americans and the elderly have increased by 84% in 2022 compared to the previous year. To protect themselves, individuals are encouraged to be cautious of unsolicited pop-ups, messages, emails, and unknown software. The FBI also warns that the U.S. government will never ask individuals to transfer money to a government-run account or a cryptocurrency exchange, and any requests to do so should be regarded as potential scams.
