Horrific, heartbreaking scams are targeting Wisconsin seniors, especially in rural areas of the state where seniors are more isolated from daily news and conversation.
Through no fault of their own, grandparents are a target for expert thieves, explains Michelle Reinen, administrator for the Division of Trade and Consumer Protection at the Department of Agriculture, Trade and Consumer Protection.
Seniors are a target simply because of their stage in life. They may have a substantial nest egg, use the telephone more, or receive benefits, such as Medicare and Social Security. Unfortunately, seniors may also be taking medication with side effects that leave them confused.
According to the Federal Trade Commission, the average loss for a 20-69 year-old in a scam event totals $450-$500. That number rises with age. Seniors ages 70+ lose an average of $800, and ages 80+ lose an average of $1,450.
Three common scams that target older adults
The grandparents scam
The scam: Also known as a “family emergency” scam, a scammer falsely claims that a family member is in trouble and requests money. The scammer often claims to be a grandchild in need of financial help for medical or law enforcement reasons. The scammer will ask that the grandparents do not tell the parents of the grandchild and to send the money through nontraditional methods, such as via wire or prepaid gift card.
Artificial intelligence and voice cloning technology can make the scammer sound like a family member to make it seem like a realistic ask.
Solution: Encourage your family to create a secret passcode so you know if an issue is legitimate should you run into a scenario like this.
Never wire money or give the account number and PIN code from a prepaid gift or money card to someone you don’t know. These payment methods are like handing over cash – the chance for recovery is slim to none.
The Romance Scam
The scam: This is a phony online love interest who asks repeatedly for money. Widowers and widows might have gone online to meet a friend group or a partner. This scam can get caught up in emotions and family dynamics making it difficult to get a family member to realize it’s a scam. The conversation requires compassion and sensitivity. These scams can result in hundreds of thousands of dollars lost in transfer.
Solution: Reach out to your local aging and disability resource center for advice on how to handle the situation. Be careful not to not blame the victim because after all, scammers are professionals. You don’t want your loved one to shut down and not tell you about the issues at hand.
To keep tabs, call your loved ones and ask about who they’ve been hearing from. If something sounds suspicious, ask what they thought of the call. Work with the victim to create a game plan and allow them to play a part in addressing the problem.
Imposter Scams
A) Tech Support Scams
A “computer technician” says you have a computer virus they can repair in exchange for payment and remote access to your computer. Scammers ask for an immediate payment to fix the “virus” and then access your device.
In reality, tech companies such as Microsoft, Google, and Apple are not monitoring your system. Hang up immediately.
B) Government Scams
A fake Social Security Administration representative warns you’re at risk for arrest or your Social Security number may no longer be valid. Or a fake “federal agent” from the IRS or U.S. Treasury claims you owe back taxes and demands immediate payment.
Awareness of these scams is especially important during the open enrollment period beginning in mid-October. Protect your Medicare number the same way you do your Social Security number. That data is critical to helping scammers commit Medicare fraud.
Don’t trust your caller ID. Scammers “spoof” the information to appear as a local number. Never provide personal information like your Social Security number or bank and credit card account numbers on an unsolicited call.
At Rural Mutual Insurance, we want to provide the knowledge and insight to help you make the best decisions to protect your family and way of life. That’s why we go beyond the policy to educate with additional content around safety and best practices.
Reach out to a local Rural Mutual agent to learn more.
