Phishing is a type of cyber or online attack used to collect your personal information. It’s relatively easy to set up and equally easy to fall for. Although it originated in the form of email attacks, it’s a technique scammers now use over the phone and on social media.
While it’s no secret that scammers target seniors, you may find yourself wondering what makes you more vulnerable to an attack. What are the warning signs of a scam? What are the common types of scams and how do you avoid them? Keep reading to learn how to arm yourself with the information you need to get protected against scammers.
Targeting Seniors: Why it Works
Seniors are the target of scams for several reasons. For starters, seniors typically have savings, own a home, and have good credit. Additionally, seniors may be less likely to report fraud. Seniors may also be targeted because they are more likely to answer unknown phone calls and respond to unknown emails.
5 Warning Signs That It’s a Scam
To avoid scams, first you must know what the warning signs are. While there are numerous types of scams out there, there are several tell-tale signs of a scammer. These are the most common signs of a scam:
- Scammers contact you unexpectedly – Whether it’s a phone call or an email, it’s almost always from someone you haven’t spoken to before. Scammers will often try to talk to you about saving on auto or home insurance, tell you that you’ve missed a payment on a bill, or that you’ve won some sort of prize.
- Scammers ask that you keep it confidential – For example, a scammer will call pretending to be your loved one, tell you they are stranded and desperately need your help. This person will ask you for money quickly, but will tell you to keep their situation a secret. Before you transfer any money, hang up the phone and call the phone number you know belongs to this loved one. This will help verify that your loved one really is in need.
- Scammers pressure you for your personal information – Most calls or emails that demand your personal information are a scam. If they ask for your social security number, credit card, address, date of birth, or any other personal information, do not give it to them.
- Scammers demand that you act now – Scammers will pressure you to act before you think. Typically, scammers will play on your fears and use scare tactics to threaten you. They have been known to threaten seniors with credit collections or even jail time.
- Scammers ask for a specific form of payment – Scammers will ask for a specific, unusual form of payment. It may be a wire transfer, gift cards, prepaid debit cards, or ask that you cash a check and send them the money. This is a red flag that you are dealing with a scammer.
Identifying Common Scams
Like technology, fraud is constantly evolving. With different phone scams and online scams emerging daily, it can be difficult to discern what is real and what isn’t. Avoiding scams can be difficult if you don’t know what to look out for. Here’s a list of some common types of scams that target seniors.
- Social Security scams: The Social Security Administration (SSA) has received reports of scammers impersonating the agency to obtain personal information or money. The SSA wants seniors to know that they will never demand personal information or threaten you for immediate payment. If this is happening to you, know that it’s a scam. You should hang up the phone and report this to the SSA office.
- Funeral expense scams: The Federal Emergency Medical Agency (FEMA) assists families with funeral expenses for loved ones lost to COVID-19. There are reports, however, that scammers are posing as FEMA agents and offering to register loved ones for this benefit. It’s important to know that this is a scam. FEMA will never contact you until you apply for assistance. People who believe they have been contacted falsely regarding this benefit should report it to the FEMA helpline.
- IRS scams: Scammers posing as the Internal Revenue Service (IRS) will contact you via phone, email, or text, and claim that you owe back taxes. They may demand that you make payment in full and threaten you with jail time if you don’t comply. Additionally, they may ask you to verify your identity by giving them sensitive personal information.The IRS will only ever contact those who owe money via mail. They only make phone calls after you have received a letter in the mail first. Furthermore, the IRS will never demand payment over the phone or ask for a credit card number, instead, they will direct you to an online portal on the official irs.gov website. Be wary of all calls from the “IRS” unless you’ve received a notice in the mail first.
- Charity scams: Scammers pose as callers from a charity, either real or fake, and ask for donations to their cause. Avoiding these scams is simple; never donate to a charity unless you have initiated the call.
- Personal scams: Personal scams are some of the hardest to recognize. Whether it’s fraudulent charges on your credit card or cashing your social security benefits, unfortunately, some adult children and grandchildren may see you as a way to make a quick buck. Be careful who you give your information to.
Tips to Avoid Scams
Now that we have discussed ways to recognize a scam and some of the common scams that target seniors, let’s take a look at some helpful tips to protect your finances and private information.
- Shred credit card receipts: Invest in a shredder to destroy any documents that have your credit card or other sensitive information on them. Be sure to monitor your online banking account regularly for any fraudulent charges.
- Sign up for the do not call list: Visit the Federal Trade Commission website and sign up for the do not call list. Don’t answer calls from numbers you don’t recognize. If the call is important, the caller will leave a message. Ignore all incoming calls that are labeled as spam or a telemarketing call.
- Use direct deposit: Have your social security benefits and any other income deposited directly into your bank account. This eliminates the possibility that your benefits can be stolen and cashed by others.
- Collect your mail every day: Your mail may contain sensitive information that you don’t want in the hands of the wrong person. Consider going paperless with statements for your checking and savings accounts to help eliminate the possibility of criminal activity.
- Discard suspicious emails: Emails with suspicious subject lines should be deleted immediately without even opening them. Never download attachments or click on links in emails without ensuring that the email came from a legitimate source.
- Exercise caution on social media: Never share your personal information on any social media platform. If you receive a message seemingly from someone you know and trust but that doesn’t seem quite right, that person’s account may have been hacked. Do not click on any link they have sent you, and notify them of the suspicious activity via phone or email.
Senior Life Insurance Scams
Older adults are the main target for senior life insurance scams. Scammers will create fake companies to sign you up for a fake policy in order to obtain your personal and payment information. Before you commit to anything, make sure the company you are speaking with is legitimate and reputable.
For more information about buying a life insurance policy online or over the phone, contact us today.