False alarm, actual rip-off: how scammers are stealing older adults’ life financial savings

Reports to the FTC present a rising wave of scams aimed squarely at retirees’ life financial savings. These scammers fake to be from identified and trusted authorities companies and companies. And, in an ironic twist, current scams use pretend safety alerts and different false alarms to prey on older adults’ vigilance about defending their cash and identification to steal from them.^[1] Some folks 60+ have reported emptying their financial institution accounts and even clearing out their 401ks.

While youthful folks report shedding cash to those imposters too, studies of losses within the tens and tons of of 1000’s of {dollars} are more likely to be filed by older adults,^[2] and people numbers have soared. From 2020 to 2024, the variety of studies from older adults who misplaced $10,000 or extra to those scams elevated greater than fourfold.^[3] When older adults reported shedding greater than $100,000, the development was much more placing: throughout the identical interval, the variety of studies elevated practically sevenfold, and the mixed reported losses went up eightfold.

These high-loss scams usually begin with a (pretend) story that will get your consideration with one or a mix of those lies:

• Lie #1: Someone is utilizing your accounts.   This lie would possibly begin with somebody pretending to be your financial institution, flagging so-called suspicious exercise, or pretending to be Amazon with a message about an unauthorized buy;
• Lie #2: Your data is getting used to commit crimes.   This lie could come from a supposed authorities officer or agent, warning that your Social Security quantity is linked to against the law like drug smuggling, cash laundering, and even baby pornography; or
• Lie #3: There’s a safety drawback along with your laptop.   This lie typically begins with a pretend on-screen safety alert that appears prefer it’s from Microsoft or Apple with a quantity to name. If you name, they are saying your on-line accounts have been hacked.

These scammers say the one approach out of the (pretend) disaster is to comply with their directions – which is able to embrace sending cash to the scammers. They could say it will maintain your cash protected, safe your identification, clear your identify, or assist catch the criminals. There could also be layers of complexity to the story, however it’s all a lie geared toward draining your accounts. Reports present that when folks assume they’re fixing an issue reasonably than sending a stranger cash, their losses are sometimes restricted solely by their obtainable funds.

Lots of scams at the moment are carried out on-line, however these scams nonetheless rely upon a cellphone name. Even once they don’t begin with a name, studies present the purpose is to get you on the cellphone.^[4] A name continues to be the easiest way to dial up the worry and the urgency so it’s tougher so that you can assume clearly and examine issues out. Keeping you on the cellphone can also be designed to maintain you from speaking to anybody who may assist – a good friend or member of the family in a calmer frame of mind who would possibly see by the lies.

In one other layer of irony, these scammers typically fake to be the FTC, the nation’s shopper safety company, typically impersonating actual employees. Reports present these scammers have informed folks to switch cash out of their accounts, deposit money into Bitcoin ATMs, and even hand off stacks of money or gold to couriers^[5] – all issues the actual FTC will by no means do. Scammers additionally fake to be different companies and companies, together with banks, Microsoft, and the Social Security Administration. Often, they tag group you: possibly beginning with a pop-up safety alert impersonating Microsoft after which transferring you to somebody pretending to be from the FTC for “help” with a pretend identification theft drawback. 

The safety of your accounts, together with the chance of identification theft, are actual issues that actual firms would possibly name you about. So how are you going to keep vigilant and keep away from these scams?

• Don’t transfer cash to “protect it.”  Never switch or ship cash to anybody, regardless of who they are saying they’re, in response to an sudden name or message. Even if they are saying it’s to “protect it.”
• Hang up and confirm.  Hang up the cellphone and name the corporate or company straight utilizing a cellphone quantity or web site you realize is actual. Don’t belief what an sudden caller says, and by no means use the cellphone quantity in a pc safety pop-up or an sudden textual content or e mail.
• Block undesirable calls.  Learn about your call blocking options to cease many of those scammers earlier than they attain you.

Learn extra about imposter scams. To spot and keep away from scams – and discover ways to get well cash in case you paid a scammer – go to ftc.gov/scams. Report scams to the FTC at ReportFraud.ftc.gov.