Recently increasing attention is being paid by banks and other financial institutions to the problem of financial scams, especially those targeting the elderly. Scammers are calling people, claiming to be from the person’s bank stating that there is a problem with his/her bank account, bank card or credit card. Other scammers use other tricks to get the elderly to give out their bank information or to transfer money out of their bank account. It is important for the elderly to be alert of the tricks that scammers come up with to defraud financially. The two most recent known scams are the bank account scam and the romance scam. Most of the scams are conducted by multinational crime organizations, often based outside USA. It is difficult to control or stop these scams because they originate in countries that do not have laws against such activities, or do not have agreements with the US to prosecute the scammers. So, the only way to deal with the problem is to be informed about the scams, what to look out for, and how to avoid becoming a victim.
Bank impersonation scams are becoming increasingly common. You may be contacted by someone claiming to be from your bank or credit card company. Often, the scammer claims to be a fraud investigator and states that the bank noticed some unusual activity on your bank account or credit card. The scammer will then tell you that he or she needs your help to catch the fraudsters and asks you if you can verify certain banking information so that you can get back the money that was taken out of your account or charged to your credit card. The scammer may then ask you for your PIN or your password or some other personal information. This should be an immediate warning to you that the caller is a scammer. You should hang up immediately and report the call to your bank as soon as possible.
You may be told during the scam call that you will be transferred to a secure network so you can enter your personal details (such as a PIN or password) to access your bank account. This should also be a red flag. Banks will never ask you to provide personal information during a telephone call. In a genuine call from your bank, you may be asked to verify that you made a certain transaction on a certain date. You may be asked to provide the amount of money involved in the transaction, but anything beyond that should immediately make you suspect that you are speaking to a scammer. If you make a call to your bank about some problem that you are facing, the bank may ask for something like a one-time access code, but never anything more personal than that.
Romance scams are becoming increasingly common, and the elderly are particularly vulnerable because so many of us in our senior years are isolated and lonely and feel neglected, thus we respond positively to any attention that we might get from someone. Romance scams capitalize on this fact, and scammers may send you messages expressing an interest in you, pretend to be in love with you, or flatter you with personal compliments. You may even get a fake photograph of the person. This scam tends a slightly longer process, lasting for a few days or weeks. Then the scammer may spin you a sob story that plays upon your kindness and compassion, and ask you to send money to help him or her out of the trouble he or she is in. Here are the red flags: (1) declaring their love for you very early on; (2) not wanting to meet you face to face; (3) telling you after only a few exchanges of messages that they are in difficulty or trouble and need help in the form of money; (4) creating a sense of urgency to act quickly. The best way to avoid becoming a victim is to ask for a face-to face meeting after the first contact, and if that is rejected, discontinue all communication with the person. You need to be proactive, look for the signs, and nip the scam in the bud if the red flags begin to pop up.
Dr. Veena Alfred Ph.D
CEO /Administrator
