We’ve all read stories about the elderly being scammed by caretakers or even worse – family members. AARP and nursing homes have educated older people about how to avoid scammers and what to do if they are victims. In part because of this, scammers have had to look for a wider audience – and are focusing on today’s youth.
According to a Better Business Bureau report, young adults between 18 and 24 are the most likely to lose money in a scam, and they tend to lose more per instance than older people. Given their comfort online, it’s no wonder that the vast majority of scams occurred via social media apps and websites. When you add in their inexperience with banking and “older” technology, it makes for a dangerous combination.
Fake Payments
Fake payment scams can run the gamut from someone saying you owe money and will have to repay (often by purchasing gift cards) to the old check clearing scam, where the perps try to make off with your cash before you realize their check was worthless. I recently saw a post on Nextdoor about an update on such a scam:
My daughter was approached by a “normal looking guy” as she was leaving WalMart and asked if she could help him. His story was that he needed to pay his rent, and his dad and friend were trying to send him the money but he could not use Venmo on his phone. Would she be willing to let them send the money to her account, then she could transfer it to him using another cash app.
Fortunately, somewhere between the transfer into her account and her sending it on to his, her phone battery died and she began to realize the dodgy situation, so she hurried to her car and came home in tears. There were, sure enough, two deposits in her Venmo account, totaling over a thousand dollars. We contacted Venmo to see whether we should refund the money right away or wait. We were urged to wait a day or two. On Friday, of course the deposits had disappeared with a notification that they had only been “pending transfer in 1-3 days” which had not shown in the account activity the night before. If she had forwarded the “money” to the guy or refunded it to the friends, we would now be out about $1,100.
Unfortunately, young people are accustomed to things happening instantly. Want to order a gift – one click and you’re done. Need to set your college class schedule? If the class is open, it’s easy. However, when it comes to money, instant is not as immediate as it might seem. In fact, while the bank may show money in your account, that money isn’t really there until the check or online payment clears, often taking several days. If you spend that money (or worse, refund part to a crook), you may not be able to recover it.
Internet Purchases
The Better Business Bureau report mentioned above noted that internet purchase scams were the most reported to them. More than 38% of scams reported were from online purchases, and they made up almost 65% of the scams in which people lost money.
Online purchase scams can take several guises. Some people have been lured in by fake websites advertising a hard-to-find Christmas gift (think Tickle Me Elmo from years ago). Or maybe the site has $500 shoes for $200. You send in your money and most often you either receive nothing or a cheap rip-off. Not only that, but you may end up opening a door to identity theft as well – some ne’er do wells use these sites as a repository for your name, address, and credit card information.
If you see a site offering an incredible price, remember the old saying of if it sounds too good to be true, it probably is. Research the site. Look for reviews on third-party sites (including the BBB) to see if people report issues. At the very least, use a credit card, so if you’re taken you can get your money back.
Employment
With most jobs advertised online, it’s easy for someone to post a fake job listing. It’s difficult to tell sometimes if a company is real, and even if the company is legit the ad may not be. Many of these focus on side-gigs for creative work and warehouse or shipping jobs.
The damage with these types of employment scams is two-fold. You could lose money if you succumb to the call for a small fee for training or photos. In fact, the old mall scam of years ago is alive and well. You apply to be a model and they charge you for the professional photos that are required to be “serious” about modeling. In the end, after spending your money, they tell you that you don’t quite have the right look.
Perhaps worse, you could lose key information that – like with the online purchase scams – could help these “employers” steal your identity. If you become a finalist for a job and they claim they need to complete your I-9 or other paperwork online, you may be tempted to hand over your Social Security Number and other personal details.
Unfortunately, even major job boards seem to be victims. Several, including Indeed, have posted how-to pages that detail steps for a safe job search and what to do if you think you’ve been scammed.
Others
When the news media reports that government will be helping students with their loan payments – or even reducing their overall debt by thousands – you can bet that the scammers will be in the front of the line with their hands out. Many times it simply takes the hint of a change and there they are. “Have you heard about extended forgiveness? Sign up here…”
Sometimes people try to befriend you on social media with the express purpose of taking your money. While this often happens with older people, young people too have been known to help their online “friend” by sending them money.
These are just a couple of the current scams. The government regularly updates its list of common scams and frauds. It’s amazing what people will do to try to separate you from your money.
What you can do
Some say that in today’s world you can’t trust anyone, but an important distinction needs to be made here. If you contact someone, you can probably trust them. However if someone contacts you (either directly or with a well-placed ad), your radar should go up.
In addition to ways to avoid scams, here are more ideas to keep you safe:
- Don’t click on links or open attachments from unsolicited texts or emails.
- Realize that the website you’re seeing may be a scam. Closely look at the website name/email address. Is it Amazon.com or Amazan.com?
- Hover over the email address in your inbox to see the actual address. If it says it’s from Bank of America but has a google.com email appear when you hover, chances are it’s bogus.
- Don’t share personal information with someone who contacted you.
- Take some time. I mention this in my article on avoiding scams, but there is rarely an opportunity that’s only available right this minute. What if they hadn’t gotten you on the phone – would your once in a lifetime chance at riches be gone? Research, think, sleep on it.
- If you think it could be real, reach out to the company using a published number from your bill or an online email address from the company’s website. Don’t rely on the number/email you received as part of the pitch.
Recently, I opened one of my email accounts to discover that it was being closed. The email looked real, had the right logos, and return address. So I contacted the email provider and discovered they highlighted and bolded their company name in real emails. What I had received was fake.
Don’t hide behind your embarrassment
Given the research I’ve put into understanding and identifying scams, I was rather embarrassed to have fallen for that email. I had plenty of excuses – I was rushed, lots on my mind, the holidays. But I felt I should have seen through it. That doesn’t mean that I didn’t share it with my kids. I explained to them how I – as paranoid as I am – fell for a fake email. And I told them that I contacted the email provider directly to find out if it was real or not.
Your kids (and elderly parents) should know there’s no reason to be embarrassed. These scammers are pros; they spend hours developing sites and messages that appeal to people. And if they are successful once, they often will try to victimize the same person again. Let your loved ones know you are a safe non-judgmental person that they can come to if needed.
Photo by Anna Tarazevich