Online financial scams are on the rise and are costing many people hundreds or even thousands of dollars. In the United States, the FBI reports that nearly 89,000 people over the age of 60 lost $3 billion to online scams in 2022.
Older people are obviously very vulnerable online because they are less accustomed to navigating the murky digital waters than younger people. If you have elderly people in your family, you may be worried that they will become targets for scams. Here’s how to help them stay safe online.
Educate older family members about online scams
There are a wide variety of online scams to be wary of. But according to the FBI, the most common scams are:
- Claim to offer technical assistance
- Claim that a package has not been paid for or has not been delivered
- Simulate a personal data theft, or an online romance
- Phishing and investment fraud.
Also consider telling your older friends and relatives that it’s probably a scam if they get a call, email, or text about a quick money-making opportunity. Inform your loved ones of the financial risks associated with online scams.
Encourage them to talk to you or another family member if they are unsure if they are being scammed.
And here are three warning signs of a scam for you or your loved ones to watch out for.
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Thieves want you to act immediately
One of the best techniques used by thieves is to create a sense of urgency. This is a common tactic to move the situation forward faster than you can think of. Thieves can threaten you with immediate consequences if you do not provide your personal information, for example.
Tell your family members to beware of scaremongering. If they are contacted by an unknown person who urges them to act immediately, it is probably a scam. Scammers can contact someone by phone, text or email. It is therefore important to tell your family members to verify the phone number or email address that contacts them.
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Thieves present their victims with a huge problem or a huge reward
Thieves often contact your elderly family members with either a huge problem or a huge reward. The problem may be a threat of arrest, a large debt, or that a member of your family is in danger. To get you to solve this problem, the thieves will ask you for your bank account details for example.
Also, a thief can sometimes offer an unsuspecting victim a large reward. He can explain to you that he is dying of an incurable disease and that he wants to share his fortune, that he has inherited a lot of money and that he wants to share it, or that he has a commercial proposal to make to the victim so that he earns money.
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Thieves tug at the heartstrings
Many seniors live alone or in nursing homes where they feel isolated from friends and family. To take advantage of this situation, scammers claim to want to establish a romantic or platonic relationship with your loved one.
Romance scams can be spread through social media or dating sites. These types of scammers will talk to someone for days, build a relationship with them, and usually tell them a very sad story. They remain adamant that there is no physical encounter and demand money.
These scammers also act in a hurry to get as much money as possible. They ask for money in the form of gift cards, money transfer through apps, or bank transfers. They will use the close connection they have with the person to justify receiving sums of money.
What to do if your loved one is the victim of a scam?
It’s essential to talk to your loved ones, even if they seem to be doing just fine on their own online. Especially if they live alone. Make them feel comfortable telling you if they’ve been scammed.
It’s not easy because often it’s a feeling of shame that prevents them from talking and giving details of their misadventures. I know a grandfather who in the space of three months was relieved of several hundred euros online via three successful attempts. This drives his daughter crazy, who tries to communicate with him on the subject, but it is very delicate.
Try to communicate, with empathy, that you are concerned for their well-being and their finances.
If you suspect your loved one has been scammed, encourage them to immediately stop communicating with the scammer. Close all bank accounts and cards the scammer may have access to. Then contact the police.
Source: “ZDNet.com”