FBI: scams targeting elderly are lucrative for swindlers

Ripping off the elderly in the United States is a profitable business for scammers to the tune of $1.2 billion in 2018 alone.

That amount can be at least doubled for 2020 when everyone was on a computer or when family members couldn’t easily check on older relatives who might have gotten fraudulent phone calls.

In his talk to the Demopolis Rotary Club Wednesday, FBI Assistant Special Agent in Charge Ray B. Cook III of Mobile listed several different scams that target the most vulnerable population in American, those over 60 years of age.

These “very, very savvy” scammers do their homework, he said, and usually get a lot of information legally. While they may make a lot of “shots in the dark,” all it takes is one victim to make a lucrative payoff.

The elderly, Cook said, are targeted for their inexperience, especially with computers, their need for companionship and the fact they are easily intimidated. They also are less likely to report a scam because of being embarrassed.

One of the most successful scams is the technical support fraud. Last year $116 million in loss to those over 60 was reported, a 200 percent increase over 2019, thanks to COVID-19. Such scams usually can become suspect because of the caller’s heavy foreign accent, Cook said.

Confidence and romance scams last year claimed 7,000 victims and caused $281 million in losses, he continued. As an on-line relationship develops between the victim and scammer, it can lead to a request for money to help in an emergency.

Surprisingly, this fraud also targets servicemen, Cook said. They can unwittingly give out geo-location information which helps foreign governments know where U.S. assets can be found.

Telemarketing, “one of the oldest in the book,” as a scam usually is less profitable, but scammers can go so far as to forge documents to offer “proof” to victims.

Foreign-based lottery scams usually demand the victim send payment to cover the “handling fees” associated with a windfall. When scammers don’t get what they want, they can threaten to burn down the house or kill the victim.

Cook said last year there were 375,000 victims who reported a total loss of $38 million associated with lottery scams.

While reverse mortgages are legal, scammers try to get victims to use that money in ways that will benefit them, not the victim.

Another version of fraud is the IRS calling to demand payment in back taxes. That will never happen legitimately, Cook said. Instead, call the 800 number associated with the agency to report the attempt. Last year victims of the IRS scam lost $45 million.

Another favorite of scammers is the “grandparents” gambit, a very sophisticated swindle that plays on the fears of grandparents who believe from a phone call that their grandchild is in dire need of funds.

Cook offered several tips to avoid being a victim of swindlers: Shred or burn any documents with account or Social Security numbers. Close unused accounts. Never give out personal information over the phone or internet. Always use an agency 800 number to verify legitimacy. Don’t pay for anything over the phone.

If anyone believes he has been the victim of a scam, time is essential in reporting so that there is a good chance to get the money returned, said Cook. The sooner the FBI knows about it, usually within 48 hours, the better.

While not perfect, the Do Not Call list helps reduce the number of phishing phone calls, he continued.

If it sounds like a scam, call the local law enforcement. The FBI looks at trends – such as the ongoing fraud associated with the CARES and PPP loans – to determine if there is a need to investigate.