Scammers looking to make a quick buck are nothing new. As long as there have been people, there have been other people trying to take advantage of them! But the 21st century is a brave new world when it comes to scamming: fraudsters have the power of the internet at their fingertips, and they’ve gotten very, very good at finding ways to take your hard-earned money. Sure, there are still some old-fashioned scammers out there that come to your door, send you snail mail, or call you on the phone, but they seem almost quaint now compared to the sophistication of online scammers.
And these online scammers, unfortunately, often target older adults, thinking that people in your demographic are easy targets – but you can prove them wrong! Armed with a little bit of knowledge about what kind of internet scams are out there, and how to avoid them, you can stay safe on the internet, and get back to chatting and shopping without fear.
Seniors and Internet Scams by the Numbers
Scammers don’t discriminate. They’ll target anyone of any race, gender, or age, but the unfortunate truth is that they do target older adults more often than they do any other group. And things are only getting worse: the last two years have seen our dependence on technology increase, and so we’ve also seen an increase in online scams.
According to “official” figures from the FBI, their Internet Crime Complaint Center received a total of 791,790 complaints with reported losses exceeding $4.1 billion. Based on the information provided in the complaints, approximately 28% of total fraud losses were sustained by victims over the age of 60, resulting in approximately $1 billion in losses to seniors. This represents an increase of approximately $300 million in losses reported in 2020 versus what was reported by victims over 60 in 2019.
But other sources tell a different story. According to an estimate by the American Journal of Public Health, a full 5% of the elderly population (which equates to around 2-3 million people) are victims of some sort of scam every year. “What’s worse, it’s very likely an underestimate,” said David Brune, a professor at the University of Toronto, who points out that a huge amount of internet scams probably go unreported. In fact, it’s more likely that seniors lose $3 billion each year to scams, with some even estimating that a whopping $36 billion is lost by seniors every year.
Whatever the real numbers, it’s clear that online scams targeting older adults are a huge problem, and we all need to be aware of what’s out there, so we can help combat it.
Common Online Scams
As we pointed out above, scammers target older adults simply because they can, and because they think that seniors are more trusting, more financially stable, lonelier, and less internet savvy than other targets. But as we also pointed out, you don’t have to fall prey to online scams, you just need to know what to look out for. In addition, remember that scammers rely on seniors being embarrassed that they’ve been taken for a ride, and think they won’t report what’s happened to them, so if you are scammed be sure to report it! But hopefully, it won’t come to that, if you are aware of the following common online scams.
Online Romance Scams
We mentioned earlier that scammers target older adults because they think your age group is prone to loneliness, and this type of scam preys on that assumption. Fraudsters will set up accounts on online dating sites or social media platforms, and try to connect with you, looking especially for older adults who have lost a spouse or who are isolated from other family members. Once you’ve been chatting for a while, and they have gained your trust, they might mention money problems, an emergency that they need help with, or even introduce you to some sort of investment opportunity that they claim you could benefit from.
Whatever the case, they will ask for money – and there have been cases of sweetheart scammers draining seniors’ entire bank accounts. This is not only one of the most lucrative types of scam, it’s also one of the most common: “romance fraud” crimes resulted in $281,134,006 total in victim losses, and were the majority of complaints from seniors aged 60 and over received by the FBI’s Internet Crime Complaint Center. From January 1 to July 31, 2021, the center reported receiving more than 1,800 complaints related to online romance scams, resulting in losses of approximately $133,400,000. And again, those are only the cases we know about, so this is something you should absolutely be wary of when trying to meet people online!
Social Media Advertising Scams
The next two types of scams make up the second most common types of online scams that older adults fall prey to: scams involving false advertising and online shopping. Just as many of us took to the internet during the pandemic to meet people, many of us also spent more time scrolling through social media, and were more open to shopping online, a combination that led to a lot more scamming. How? Scammers often put advertisements for products on social media, but when you order the product, they will not deliver it, will send something that doesn’t look anything like the product you ordered, or even steal your information.
According to an FBI report, “The combination of online shopping and social media creates easy venues for scammers to post false advertisements. Many victims report ordering items from links advertised on social media and either receiving nothing at all or receiving something completely unlike the advertised item.” Online shopping can be a life-saver (or just kind of fun!), but it’s best to only buy from reputable sites that you know. Which brings us to another type of online shopping/false advertising scam…
Health and Beauty Products Scams
Scammers think they know what seniors want: cheap prescription medications and anti-aging products. That means you have to be very wary of any of these types of products being advertised online, since scams involving counterfeit health and beauty products have become much more frequent since the start of the pandemic. In fact, elderly victims filed more than 14,000 complaints about nonpayment/non-delivery cases for a total loss of around $40 million in 2020, which was double the number of complaints about the same type of crime in 2019 or 2018.
What to be on the lookout for? Advertisements or emails touting prescription drugs that work just as well, but are cheaper, than the ones you’re paying for now. These drugs could be counterfeit, which can be dangerous, or they might not even exist – scammers might simply be trying to get your insurance information or credit card number. Also, be wary of advertisements or emails offering Botox treatments or other anti-aging products: again, you could end up purchasing either something that doesn’t exist, or could even be harmful to your health.
Technical Support Scams
The third most common type of internet scam targeting seniors is those involving fake offers of technical support. You might get a pop-up message on your computer, telling you your account is compromised, or you have a virus, and that you need to contact a technical support team, or click on a link to resolve the issue. As the FBI points out in their report, In these schemes, a criminal poses “as support or service representatives offering to resolve such issues as a compromised email or bank account, a virus on a computer, or a software license renewal.”
The FBI points out that this has become a big problem: in fact, in 2020, the Internet Crime Complaint Center saw a huge leap in the number of complaints about these crimes and the amount lost. Victims aged 60 and older were defrauded $116,415,126 from these types of online scams in 2020, compared with 2019, when they resulted in a loss of $38,410 for the same age group. The bottom line: companies won’t contact you about technical support, you have to contact them, so never ever engage with these types of requests.
Sweepstakes Scams
Some online scams will attempt to convince you that you’ve won a prize, maybe because you’ve helped the website hit a milestone, or even just that you’re a random lucky winner. So how can something that’s supposedly free be a scam? You just have to remember that nothing on the internet is ever free! Fraudsters perpetrating sweepstakes scams will tell you you’ve won something, but you will have to give them your personal information to claim your “free” prize, or give your credit card information and pay a fee to have it sent or transferred to you. All of this should be a red flag – in fact, it’s always best to ignore any bright, loud, flashing pop-ups telling you you’ve won a prize that you didn’t even sign up for!
Vacation Scams
Again, it’s important to remember that nothing on the internet is ever free; it’s also important to remember that if something on the internet looks too good to be true, it probably is. Scammers might advertise “free” vacations, or deals on vacations to popular destinations that are so good you just can’t pass them up. But these “deals” will often require that you place a down payment quickly, since the offer is only for a “limited time,” and they are often advertised by fraudsters who either don’t own the property, or who are advertising a property that doesn’t even exist. You should always read the reviews of a property before booking, and if you want to book through a third-party online, stick with reputable sites.
Avoid Getting Scammed!
Knowing is definitely more than half the battle when it comes to online scams, but there are some steps you can take to stay safe when surfing. Keep the following in mind:
No government agency, internet service provider, tech company, bank, etc will notify you through email or on a website that you owe them money.
If a deal on a vacation, prescription drug, or something else seems too good to be true, it probably is. Perform more research on the company providing the deal.
Verify, verify, verify: always follow up before you take action. For example, if you get a message from someone claiming to be with your bank, contact your bank directly to see if they are really trying to reach you.
If you’re unsure about a purchase or a request for information, don’t be afraid to ask a trusted family member or friend for their advice on what action you should take.
The FBI suggests you contact your doctor before committing to any health procedure or treatment that you aren’t using your insurance for.
Don’t know them? Don’t do business with them. Avoid clicking on links in emails from unknown sources, or buying products from unknown companies, no matter how enticing their social media ads are.
It can be uncomfortable, or even painful, to break off a relationship with someone you’ve been chatting with online, but if they begin to ask for money, you should end things as quickly as possible.
Always be wary of “limited time” deals that are ending in the next few minutes – don’t give in to impulse buying scams!
How to Report Internet Scams
There are many ways you can report fraud.
It’s an unfortunate fact that more than 80% of internet scams go unreported – not only because the victim doesn’t get justice when these crimes go unreported, but also because reporting them is the only way to stop them. If you’ve been the victim of a scam, you can report it to:
FBI’s Internet Crime Complaint Center
Federal Trade Commission (FTC): This government agency looks into telemarketing and phishing scams
Securities and Exchange Commission (SEC): If you suspect you’ve been scammed by an investment scheme, you can contact the SEC
Social Security Administration: The SSA is a great place to report potential scams that involve your social security number or funds
Better Business Bureau: If you feel a business is scamming you online, report it to the Better Business Bureau
Your bank: If you get scammed out of money, all hope is not lost – speak to your bank, and you might be able to recoup your money
There are a whole lot of unscrupulous people out there, looking to take advantage of the whole lot of us out there shopping, chatting, and surfing online. But you know what? We can be ready for them! Armed with the knowledge above, you can avoid the most common scams targeting older adults online, and thwart all of those fraudsters. Just remember, though, if the worst does happen, it’s not your fault – but you do need to report it, so you can hopefully get back what you’ve lost AND make sure it doesn’t happen to anyone else!
As we head into late summer, and start dreaming of crisp fall weather and pumpkin spice, it’s worth remembering that summer hazards are still around us in full force. That includes things like the risks of heatstroke and sunburn, but also the chance that your area could be hit with a natural disaster like a major storm or wildfire. Natural disasters like these can not only cause damage and devastation to your property, but they could also wreak havoc on your access to utilities like electricity, gas, water, and phone lines – and, as if that weren’t bad enough, there are scammers out there impersonating utility company representatives who could try to take advantage of you when you are at your most vulnerable. Remember, though, while these scams increase following natural disasters that affect people’s power and water, they can happen at any time, so be ready by knowing how to identify scammers – and how to handle them!
It’s depressing to think that there are people out there who will lie to make a quick buck, and especially depressing that they tend to do it to older people during difficult times, but it’s something you need to be aware of. Information from organizations like the Better Business Bureau (BBB), the Federal Trade Commission (FTC), and FEMA point to the fact that incidences of utility scams dramatically increase after natural disasters, and these organizations urge people (especially seniors) to know scammers’ tactics, what to do when confronted by a possible utility scammer, and the general do’s and don’ts of dealing with any sort of utility company issues.
Emily Wu, an attorney for the FTC, gives an overview of what to look out for: “Scammers know severe weather may have shut off your electricity, heat, and water, and might pose as your utility company. They might call to say that they’re sorry your power went out and offer a reimbursement, but first they need your bank account information. They might email you to say that there’s an error in their system, and you have to give them personal information so they can turn your gas on again. They could even threaten to leave your utilities shut off if you don’t send them money immediately. But those are all lies.”
Let’s take a closer look at what you should be watching out for, and specifically how these scammers might try to contact you:
At Your Door
Some scammers will come to your door asking for immediate payment.
Scammers might go the old-fashioned route and come to your door, so be very suspicious of anyone who doesn’t have an appointment or who shows up if you haven’t contacted the utility company for assistance. They might ask for immediate payment, or even for access to your home so that they can try to steal items or your personal information; they might offer some of the following excuses for needing to come inside:
They need to check, repair, replace, or reset something inside, like your water or natural gas pipes, electrical wiring, or appliances, and might use scare tactics to get access.
They are offering a free service, like an energy “audit,” an “efficiency inspection,” or a water quality/pressure test.
They claim there’s a major gas leak or other serious issue in the area and they need to check your home.
Again, whatever you do, do not let anyone in who you are not expecting – any legitimate utility workers or representatives will make an appointment in advance, or will at least provide you with proper ID when they speak with you.
On the Phone
Utility phone scams are another common problem, and usually involve scammers trying to get payment of some form or your personal financial information. They might:
Demand immediate payment and threaten to disconnect your service if they don’t receive it, and they will often require that the payment be made in a specific way, like with a prepaid card. Utility companies will never require this type of payment, and will also send you one or more disconnection warnings first.
Call asking for payment, and give you a phony account or routing number to use to pay your bills, and will ask that you give them your financial info.
Tell you that you have “overpaid” on your last bill and have a reimbursement coming to you, but you need to give them your banking information so that they can deposit the funds.
Offer you an “express service” after a natural disaster, so that your power/water/gas is restored more quickly – but only if you pay an upfront “reconnection fee.”
Via Technology
Scammers these days have more than just these traditional tactics to fall back on; they might also try to contact you via:
Text message – Known as “smishing,” short for SMS phishing, scammers will send out texts that look like they’re from a utility company, and that ask for personal information that they can use for identity theft purposes. Your utility company will probably never ask for information this way, and will certainly never contact you via text message unless you’ve opted into that service. When in doubt, contact your utility company directly if you’ve received a text from them.
Email – Utility scammers can easily obtain your email address and send messages about errors in their system, or other technical issues that they need your personal information to resolve. Some scammers will even cleverly create a “bill” from your utility company and send it to you via email; this bill will often direct you to a bogus website that will steal your personal information.
The Do’s and Don’ts
All of this might sound a bit overwhelming, and a lot to worry about, but don’t worry! There are some specific things you can do (and not do!) to avoid being taken for a ride by utility scammers. Here are your basic do’s and don’ts of dealing with utility companies or problems:
Do:
Only use the phone number provided on your bill to contact your utility company if you are behind on a payment or have received a message from them. Never use a call back number from an unknown source, and always verify that every message comes from them.
Know how your utility company deals with customers; for example, they will never ask for personal information over the phone, and they will not simply cut off your service without advance warning.
Thoroughly question anyone that comes to your door or calls you and claims to be from your utility company – ask them for ID, their employee number, and for any specific information they can give you about your account.
Notify your utility company if you suspect you’ve been contacted by a scammer.
Tell your neighbors to be on the lookout if you suspect there’s a scammer making the rounds in your area.
Don’t:
Do not click on any links in your email or text messages.
Provide personal or financial information to anyone who comes to your door, calls you, or emails you – ever!
Use questionable payment methods to someone claiming to be with your utility company, including gift cards, cryptocurrency, prepaid cards, or wire transfer.
Get scared or allow yourself to be bullied! Scammers will threaten to immediately cut off your service, but your utility company will always send you multiple notices, as well as a date when they might cut off your service if it comes to that.
Let anyone into your home if you don’t have an appointment, haven’t requested help, or haven’t received advance notice from your utility company; even then, make sure to check their ID, and contact your utility company if you’re unsure.
Click on any links sent to you via text message or email unless you’re 100% sure they are from your utility company.
There’s no doubt about it: it stinks that there are people who are slimy enough to prey on older adults – and it makes it especially heinous that they often do so during the worst of times, like after a natural disaster. But remember that utility scams can happen at any time, they just get more frequent after these events, so always remain vigilant, and follow the tips above to keep yourself out of trouble!
