In early 2021, Marjorie Bloom, a 77-year-old retired federal attorney, fell victim to a complex tech support scam that cost her $661,000. In summary, the scammer pretended to be a “fraud investigator” from PNC Bank, where Ms. Bloom had been a long-standing customer.
How could such a fraudulent activity occur? According to CNBC, the “investigator” persuaded her that criminals—using stolen personal data—were in the process of pilfering her life savings.
To protect her money, he said, she needed to take preventative action and move her funds quickly and covertly.
Divulging the problem to anyone, especially to her three children, could thwart the “bank’s” efforts to protect her life savings, he said.
How was she contacted? An unsolicited popup window on her PC alerted her to call a customer support phone number listed on the screen, supposedly for Microsoft.
Let’s be clear: Legitimate tech companies never do this. Let me repeat that. Legitimate tech companies never do this.
How did she receive the popup message? Possibly, she was simply surfing the web when a site that had been infected with a malicious code launched the popup and the phone number that led to criminals.
Unfortunately, she called the number, and the “engineer” informed her she had been hacked. She volunteered that she banked at PNC, and he transferred her to a scammer posing as a PNC fraud investigator.
It’s heartbreaking to relay such a story, but do you see some of the red flags? It’s easy in hindsight.
Don’t tell anyone.
You must move quickly.
It was an unsolicited popup on her computer.
What’s more concerning is that if a legitimate bank employee raises red flags about unusual transactions, scammers are often ready with convincing scripts to coach you through the interaction, making it harder for legitimate fraud teams to intervene and protect you.
Scammers are slick, smooth, and ruthless.
A bigger problem
In 2024, Americans over the age of 60 lost $4.8 billion through scams and fraud, according to the FBI’s Internet Crime Report.
The average loss: $83,000.
Americans over all age groups reported total losses of over $16 billion, or a staggering 33% increase from 2023, with an average loss of just over $19,000.
The average loss for all age groups is less than the average loss reported by older people, which “underscores that fraud affects people of all ages. But when older adults are victimized, the impact is often catastrophic,” notes Kathy Stokes, AARP’s director of fraud prevention programs.
Why do scammers target older Americans?
Older Americans control a significant portion of wealth.
They tend to be more trusting.
They may be less tech-savvy.
They are more prone to cognitive decline and may not recognize they are being scammed.
They are less likely to report the crime.
Not all the complaints included age information, and many folks who were scammeddidn’t report it either because they believed they would never get their money back, or they were just too embarrassed to come forward.
It’s safe to assume that the nearly $5 billion older Americans had siphoned away is just the tip of the iceberg.
Nevertheless, as more of us become mindful of the various tools criminals use to defraud unsuspecting victims, we become better equipped to deal with potential threats and are in a much better position to avoid falling prey to the many schemes that are proliferating over the phone and across digital platforms.
Avoiding investment scams
In 2024, investment scams led the pack for older Americans with $1.8 billion in reported losses—almost twice the toll from tech support scams, which accounted for nearly $1 billion.
So, what are the best ways to avoid investment scams?
Ask questions. Fraudsters are counting on you not to investigate before you invest. Fend them off with an inquisitive nature.
Research before you invest. Unsolicited emails, message board postings, and company news releases should never be used as the sole basis for your investment decisions.
Know the salesperson. Spend some time checking out the person touting the investment before you invest—even if you already know the person socially.
Be wary of unsolicited offers. Be especially careful if you receive an unsolicited pitch to invest in a company or see it praised online, but you don’t find current financial information about it from independent sources.
Protect yourself online. Online and social marketing sites offer a wealth of opportunities for fraudsters.
Be leery of “guaranteed” returns. Outside a select few investments, such as FDIC-insured CDs, promises of high returns with little or no risk are a red flag.
Strengthen your digital defenses. Use strong, unique passwords, enable multi-factor authentication, and keep your devices updated. Good digital hygiene helps block phishing and impersonation attempts.
Talk to someone you trust. Mull it over with a friend or family member. Never succumb to the pressure that you must act now.
Please remember that we are always available if you have questions about any investment.
What about tech support scams?
According to Microsoft, tech support scams are an industry-wide issue where scammers use scare tactics to trick you into unnecessary technical support services that supposedly fix your device or remedy software problems that don’t exist.
Tech support scams are on the rise and often start with a popup message or a sudden phone call claiming there’s a problem with your computer or device.
The goal is to get you to pay for fake repair services or grant remote access to your device. Once inside, scammers can install harmful software that puts your personal and financial information at risk.
Furthermore, ignore popup warnings with phone numbers and keep your software updated.
The best defense is awareness. If you ever receive a suspicious message or call, don’t respond or click any links. Instead, contact the company directly using a number from their official website—not one from a popup or email—or reach out directly to a trusted source, such as your IT professional or a family member or friend.
What if you are a victim?
Report the crime at https://www.ic3.gov/. The Internet Crime Complaint Center (IC3) is the central hub for reporting cyber-enabled crime. It is run by the FBI.
What if you paid a scammer? The Federal Trade Commission encourages you to contact the company or bank that issued the credit or debit card. Inform them it was a fraudulent charge.
Fraudulent wire transfers could be reversed if you act quickly.
Cryptocurrency payments are not reversible. Any company that insists on payment in cryptocurrency should immediately raise serious concerns, as it is often a hallmark of fraudulent activity.
You can report the fraud at https://reportfraud.ftc.gov/.
Bottom line
Scammers are growing increasingly sophisticated; they show no mercy and often target older adults with deceptive and convincing tactics.
But with the right mix of knowledge, caution, and common sense, you can greatly reduce your risk of fraud.
If you have any questions or concerns, don’t hesitate to reach out to me or any member of our team. We’re here to help.