There's a lot of concern in political circles over "fake news" -- the widely believed theory that ink-stained partisans simply invent news that makes the other guys look bad. Then there are those who doubt anyone ever landed on the moon or that vaccines are really safe.
This is good fodder for dinnertime conversation but doesn't have all that much effect in dollars and cents, not counting campaign contributions. But when it comes to actual money, the inability to tell real from phony gets serious.
As we report today in a separate story, academicians are hard at work trying to figure out why so many people -- especially seniors -- fall for fake news, conspiracy theories and elaborate scams that can wind up costing them their retirement nest egg.
A Washington Post story tells of a Maryland woman who lost her life savings, some $600,000, to a man who pretended to be an FBI agent. He used a real agent's name and had an email address ending in usa.com, which sounded pretty official to her.
Of course, anyone can get a usa.com address. A real FBI agent's address would end in fbi.gov, but that was news to the victim.
"How would I know that?" she asked.
Seniors more vulnerable. Richer too.
For various reasons, seniors are more prone to fall for scams that use impersonation and dire-sounding situations. They're supposedly more trusting and more inclined to want to be helpful, especially to supposed law enforcement or other figures of authority.
There's another factor too: they have the money. Baby Boomers -- those born from 1946 to 1964 are the most prosperous generation ever, with about $84 trillion stashed away in IRAs, money-market funds, real estate and just about everywhere else.
The money's there for the taking and there is no shortage of crafty professionals trying to get their hands on it.
Those who read this site regularly see an unending stream of reporting about scams and similar warnings are found everywhere, but well-meaning consumers continue to fall for them.
"So many scammers, so little time," one investigator sighed, lamenting that federal and state police and prosecutors are swamped with cases that simply overwhelm them. Now and then, they'll land a big one and arrest a notorious scammer who has made off with millions from unsuspecting victims.
But most cases are never solved. The perpetrators are overseas, the evidence was destroyed, the payment couldn't be traced, and on and on.
What to do
How to avoid being scammed? The first step is to change your attitude. Trust no one must become your motto, not just online but everywhere. Protect your identity and confidential information, avoid mailing checks whenever possible (they're easily stolen and forget), don't loan or give money to anyone who isn't a family member and ignore any call or email that asks or orders you to send money now to avoid some disaster.
It takes an attitude change. Is it sad that orphaned fish are washing ashore with no one to care for them? Of course, but sending money to an organization that claims you can adopt a fish and help it live a healthy life is, well, fishy. (This is obviously not a real example but you get the idea.)
It's also a wise notion for seniors to avoid computers except for certain well-defined activities and to have someone who can monitor their activities, although this obviously presents problems itself.
9 steps to take
Here are some scam-avoidance tips compiled from various sources, including the FBI, AARP, FTC and other authoritative agencies.
1. Be Skeptical of Unsolicited Communications
- Phone Calls: Avoid sharing personal information with unknown callers, especially if they claim to be from government agencies or financial institutions.
- Emails and Texts: Look out for spelling errors, generic greetings, or urgent demands. Don’t click on links or download attachments unless you’re sure they’re legitimate.
2. Verify Before You Trust
- Research Offers: Too-good-to-be-true deals are often scams. Research the company or individual offering the deal.
- Contact the Source: If you receive a suspicious request (e.g., for payment or personal info), independently contact the organization to verify.
3. Use Strong Cybersecurity Practices
- Passwords: Use strong, unique passwords and enable two-factor authentication wherever possible.
- Secure Wi-Fi: Avoid entering sensitive information on public Wi-Fi networks without a VPN.
- Antivirus Software: Keep your devices updated and use reputable antivirus protection.
4. Be Cautious with Payments
- No Wire Transfers or Gift Cards: Scammers often ask for payment through these methods because they’re hard to trace.
- Secure Websites: Ensure websites use HTTPS before entering payment information.
- Monitor Bank Accounts: Regularly check your accounts for unauthorized transactions.
5. Protect Your Personal Information
- Limit Sharing: Be cautious about sharing sensitive information like your Social Security number or financial details.
- Shred Documents: Destroy documents with personal information before discarding them.
6. Watch for Warning Signs
- Pressure Tactics: Scammers create a sense of urgency to push you into acting without thinking.
- Requests for Secrecy: Legitimate organizations won’t ask you to keep transactions or communications a secret.
7. Educate Yourself
- Stay informed about common scams, like phishing, tech support scams, or fake investment opportunities. Trusted resources include:
- Federal Trade Commission (FTC) scam alerts.
- ConsumerAffairs and other consumer protection websites.
- Local law enforcement announcements.
8. Trust Your Instincts
- If something feels off or too good to be true, take a moment to pause and investigate further.
9. Report Scams
- If you suspect a scam, report it to authorities such as:
- FTC: ReportFraud.ftc.gov
- Local police or consumer protection agencies.
Staying informed and cautious can significantly reduce your risk of being scammed.
If the worst happens
Though coming forward can be difficult if you’ve been victimized, it’s important to notify law enforcement. File a complaint with the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center at ic3.gov.
Complaining to local police generally doesn't help. They don't have the staff or, in most cases, the expertise to chase down perpetrators all over the globe. Many scam victims call their bank seeking help but there's seldom the bank can do since, in most cases, the scam victim has voluntarily given money to the con artist.
There's comfort in numbers. You can tell your story online here and at numerous other sites around the web. It may not get you immediate relief but it can help others avoid the same fate.
AARP Fraud Victim Support Group provides an online forum for scam victims. Group sessions are confidential and led by trained facilitators. They also are open to friends and family; go to aarp.org/fraudsupport.