Fighting Fraud
Did you know that the average American gets 3-4 spam calls a day? No wonder most of us will not answer calls from unknown numbers anymore! It is just one indication of the unfortunate reality that scams are on the rise. From 2020 to 2021, there was a 74% increase in losses to fraud reported to the Internet Crime Complaint Center. And a report from Javelin Strategy & Research found a 90% increase in bank account takeover fraud and 109% increase in new account fraud. This amounts to an estimated $52 billion in losses due to identity fraud alone!
Why is fraud becoming so prevalent?
First, it is important to note that many scammers primarily target older adults due to their age-related vulnerabilities and higher likelihood of having built up wealth. With the Baby Boomers in their retirement years, the United States has the greatest collection of wealth and the largest generation of potential scam victims we have ever had! This is powerful incentive for those without moral inhibition.
New technology developments have also made it more difficult to recognize fraud. Scam callers in particular can bypass your caller ID by spoofing phone numbers so a spam call looks like it is from a loved one or government agency. They can also use advanced AI to clone voices from sound clips of videos posted online in order to make it sound like you are talking to your grandchild. And not only that, if you try to ask follow up questions that would stump normal robocalls, AI is able to give a believable response! This makes it much easier for scammers to con victims out of their money.
Most significantly, since the COVID-19 pandemic, many more people have been relying on technology and the internet to conduct their daily business. That means more opportunity for scammers to cast a line and hook a victim. For older adults who typically find digital platforms more challenging to learn, the world’s greater technological dependence makes them more susceptible to online scams that often utilize email links, popup browser windows, or fake ads that steal personal information or download a virus to your computer.
How can we protect ourselves and those we love? The best defense is awareness of scammer strategies. They prioritize targeting those who are socially isolated, will often impersonate an authority figure, and always create a sense of urgency and/or scarcity. Scam categories include:
Government impersonation
Child or grandchild impersonation
Sweepstakes and lottery
Computer Tech “Support”
Romance
Investment
Medicare and health insurance
Even financial Power of Attorney documents have sometimes been used by scammers to steal money from older adults. For example, an elderly man that lives alone might suddenly experience health problems and end up in the hospital. Then a stranger or relative shows up offering a Power of Attorney to help manage his finances for him, only to transfer all of the man’s savings and property to himself leaving the poor fellow destitute. Fortunately, the recent 2018 Uniform Power of Attorney Act in North Carolina has provided safeguards. This law prevents financial exploitation of the principal and provides clarity concerning what the appointed agent is and is not permitted to do with the principal’s finances. This makes getting away with Power of Attorney abuse much more difficult. With that kind of protection in place, you can rest peacefully knowing your wishes are being followed.
Still, sometimes emotions run high and the apparent urgency of the scam can catch us off guard. Decide today to pause before you click on a link, and for scam calls, consider either choosing a code word to confirm the identity of your loved ones, or hang up and call back your “loved one” in crisis. Guarding your personal information, sharing your knowledge with others, and reporting scams to local law enforcement, the federal trade commission (reportfraud.ftc.gov) or the FBI (IC3.gov), can also make a difference. Finally, take the proactive step to find someone you trust and complete a Power of Attorney now before you are placed in a vulnerable situation where scammers can try to use it against you.
Remember that the team at Hillsborough Wills & Trusts has the expertise to help you Build Your Circle of Security.
Call us for a free consultation at 919-245-8440 or contact us today.
