Internet Scams & How to Avoid Them

Sophisticated internet scams targeting elderly clients are increasingly prevalent. They exploit vulnerabilities like unfamiliarity with digital tools and financial trust. Scammers use phishing emails, fraudulent tech support calls, and fake investment opportunities to gain access to personal and financial information. To combat this, advisors and families must prioritize cybersecurity education and implement safeguards such as secure passwords and multi-factor authentication. Proactive vigilance is key to protecting elderly individuals from these advanced threats.

A 2023 Elder Fraud Report released by the FBI found that the Internet Crime Complaint Center received over 880,000 complaints, with potential losses exceeding $12.5 billion. Making victims believe it is an urgent matter is one of these criminals' most used tactics. When asked to make wire transfers to foreign accounts or move money through cryptocurrency, immediately say no, as these are ways you could never recover your money. You may think you would never be scammed, but some of the most savviest people have been scammed and even gave authorization.

1. Phishing Emails

Phishing involves emails that mimic trusted institutions, such as banks or government agencies, to deceive recipients into sharing passwords, Social Security numbers, or financial details. These emails often contain urgent messages, prompting action like clicking on malicious links or downloading harmful attachments.

2. Tech Support Scams

Scammers claim there’s an issue with a computer or software, prompting victims to grant remote access or pay for fake services. They may use pop-up warnings with official-looking logos or unsolicited calls to establish credibility.

3. Romance Scams

Targeting vulnerable individuals, particularly widows or divorcees, these scams use fake profiles on dating platforms or social media. The scammer builds a relationship, gains trust, and then fabricates an emergency to request money.

4. Lottery/Prize Scams

Victims are told they’ve won a lottery, prize, or sweepstakes but must pay upfront fees, taxes, or customs duties to claim the winnings. Often, no real winnings exist, and scammers repeatedly request more money.

5. Medicare Scams

Scammers pose as Medicare representatives to steal personal information by offering free medical services or equipment. They may also bill Medicare for fake claims, leaving the victim unaware of the misuse.

6. Investment Scams

Fraudulent schemes promise high returns with little risk, often involving fake stock opportunities or real estate deals. Elderly individuals with retirement savings are prime targets, as scammers exploit their desire for financial security.

Some precautionary measures to take:

• Enable a trusted contact person on accounts.

• Establish guidelines for account activity “thresholds” and when to intervene.

• Keep external checking accounts at a minimal balance, so if fraud were to occur, it happens to a minimal balance.