Tis the Season to be Cautious
By: Max K. Erkiletian
Tags: Scam, Crime, Seniors, Fraud, Holidays

Holiday thieves are just a phone call away

Photo by Hannah Wei on Unsplash

Unfortunately, the coming of the holidays is the peak season for phone scams and elder fraud. Recently, a woman near where I live lost about $3,000 to a crook promising reduced phone and television bills.

That is just one of many frauds that cheat seniors out of $2.9 billion a year, according to the United States Senate Special Committee on Aging.

Special Committee on Aging Fraud Hotline: 855–303–9470

“Many scams are perpetrated by criminals operating from foreign call centers, beyond the reach of state and local law enforcement and thousands of miles from the seniors whom they victimize,” said Sen. Susan Collins (R) Maine, who heads the committee.

In keeping with the season, it’s a good time to become familiar with some of the classic frauds and how to deal with them.

IRS Impostor Scam

The most popular fraud, according to the committee, is the IRS impostor scam. This swindle starts with a phone call from a crook using a fake name and id number to identify themselves as an IRS agent. They claim you owe money to the government and that you must pay immediately or face arrest, financial penalties, loss of your driver’s license, or suspension of your business.

These scammers try to get you to transfer money directly to them or to purchase gift cards from a retail store and read them the card numbers, so they can cash them.

You need to know, the IRS does not try to collect money over the phone. They only work through the mail, though you can call them. The IRS does not collect payments in gift cards. Also, the mention of suspension of your driver's license is a red flag. Driver’s licenses can only be issued or rescinded by state governments.

Though many of these scammers operate from foreign countries, they often use operatives in the United States to receive and forward the victim’s money to them.

Social Security Impostor Scam

Similar to the IRS version is the Social Security impostor scam. Here, the fraudster calls, claiming your social security number has been suspended because of suspicious activity or it has been used in a crime.

“They ask to confirm the victim’s Social Security number,” according to the Department of Justice (DOJ), “or they may say they need to withdraw money from the victim’s bank and to store it on gift cards or in other unusual ways for ‘safekeeping.’ Victims may be told their accounts will be seized or frozen if they fail to act quickly.”

Often the Social Security impostor makes contact through a robocall in which a recording directs you to “press one” to speak to a representative.

Just like the IRS, the Social Security Administration does not use the telephone to conduct business, unless you contact them.

Tech Support Scam

Here, the criminals pretend to be computer technicians from a well-known company calling to alert you of harmful problems with your computer. In a variation on this scam, you may see pop-ups on your computer screen warning of bogus viruses, malware, or hacking attempts.

To solve the “problem” they have detected, the perpetrator gets your permission to access your computer remotely. Once in your computer, the bad guys try to get you to make large payments for their unnecessary service.

Sometimes, these same scammers call back, saying they need to refund some of the money you paid them. However, after supposedly issuing a refund, they tell you the refund was too much and you need to pay them back — again using gift cards.

Lottery Scam

In the Lottery Scam, the fraudsters say you have won a foreign lottery, vacation, cruise, or a boatload of money. All you have to do is pay some fees, taxes, insurance, or duties and it’s all yours. Sure, when pigs fly.

“Victims pay hundreds or thousands of dollars and receive nothing in return, and often are revictimized until they have no money left,” according to the DOJ.

Romance Scams

Don’t be a fool for love. Many good and lasting relationships have been forged online. However, some swindlers have taken trusting victims for a ride — and not down the aisle.

These scammers prey on people looking for love and companionship by creating false identities. They build trust over time weaving a story that involves a short-term need for money to get out of a jam or realize the success of a project. Often victims offer money without being asked.

Some romance scammers pop the question online. All they need is some money to cover wedding and honeymoon costs.

Even worse than the scam, some of these crooks rope their victims into being what the DOJ calls “money mules”.

“For example,” the DOJ reports, “Romance Scam victims often are induced to receive payments and/or goods such as technology equipment procured through fraud and to forward those payments and goods directly or indirectly to perpetrators.”

There are many similarities between these scams. One of which is the use of real numbers, used without the owner’s knowledge, for caller id.

Combating Phone Fraud

The simplest safeguard is not to answer a call from an unknown number. These people do not leave callback messages. If you answer the phone, hang up as soon as you recognize the scam.

These phone scams are often recorded in hopes of getting your recorded permission to access your financial accounts. Never say “yes” or make any statement that could be altered to sound like you are giving consent, such as, “I will not.” That can be edited to “I will”.

Remember, the IRS and Social Security Administration do not originate calls to you, unless you ask them to. So, if a purported representative of either of these agencies calls you, they are criminals trying to steal your money — hang up.

Lastly, these scammers are criminals. They are not nice people and they play dirty.

Last year, a man in Republic, MO recognized the IRS imposter scam. He gave the scammer an earful and slammed down the phone. A few minutes later, police surrounded his house. The scammer had called law enforcement telling them the man was holding a hostage at gunpoint inside the house. Fortunately, the police figure out they had been scammed too and all ended well.

Just to give you an idea of how prevalent this sort of crime is and how persistent the criminals are, during the time I have been writing this piece, I have received three calls from unfamiliar numbers all over Missouri. That is in addition to the two I had this morning.

I have not answered those calls. None of the callers have left messages. I have blocked and reported each number. I hope you do the same.