The Sting

Answer: Today’s schemes are more sophisticated than the old Nigerian Prince fax ploy. Scams are now so elaborate that our firm created a department devoted to protecting “Seniors at Risk.” Here are five scams offering proof that not everyone has your best interest at heart.

Romance

Social media sites prey on those seeking companionship. Imposters gather information and gain trust. Then they’ll persuasively ask for help with an emergency, medical bills, legal fees, or travel expenses. If there’s an upcoming rendezvous planned, expect an emergency right beforehand asking for more money, or a reason to change the time of the visit.

Scammers build trust by sharing a fictitious family to cement the relationship and present a “real” identity. They manipulate victims into larger and more frequent transfer requests, even creating jealousy and urgency by mentioning other suitors. Scammers are patient, investing a great deal of time to build trust. Red flags include asking to keep things secret until they can meet your friends and family in person, which will never happen.

Slaughter

There’s a Wall Street saying that “pigs get fat, hogs get slaughtered” to convey lessons on excess and greed. The hook on this ploy is set with promises of a high-yield investment tip or cryptocurrency opportunities. Similar to romance swindles, social media is used for initial contact. Instructions are shared on how and where to send funds. If met with resistance, high-pressure tactics or guilt are used. Secrecy is encouraged to keep others from questioning the validity of the “opportunity.” If you ask to make withdrawals, you’ll likely be told to pay additional fees to access funds or risk being locked out. Ultimately, both the scammer and your money will disappear.

Grandparent Scam

A call from an unknown number is received, often from a grandchild. When answered, the voice may be unrecognizable (Grandma, I broke my nose in a car accident, that’s why I sound funny…), or the person may pose as your grandson’s lawyer, or even a kidnapper. It’s all the same; they want your money and often cause panic with sounds of pleading or screaming in the background of the call. With advanced technology, the call could even appear to be coming from your loved one’s phone.

If you receive a call like this, hang up and call the person in question to confirm they’re not in danger. Red flags are similar to other swindles with requests for large withdrawals and transfers of funds, a sense of urgency, refusal to answer questions, and strong emotional pleas.

Sweepstakes Scams

These thieves convince victims there’s a prize to claim, only to steal personal information. Sweepstakes names similar to those of known companies are used to manipulate, deceive, and convince victims to send money for processing fees or taxes. The scammer asks for bank details, a social security number, or other sensitive information, which can lead to identity theft. A sense of urgency is created to avoid losing out on the winnings. Scammers also instruct victims to keep their winnings confidential. The red flags are again the same: requests for large withdrawals, secrecy, and wires to unfamiliar entities, or foreign accounts. There’s often a promise to provide details of your windfall later, but not right now.

Affinity Fraud

This is a relatively new, exceedingly dangerous, costly, and exceedingly more popular hoax. Fraudsters intentionally target members of specific groups like fraternal orders, religious communities, educational entities, or other organizations and pretend to be dedicated members and part of that same group. The expectation is that the victim will feel an affinity with the scammer and have greater trust with another so-called member. Again, fraudsters are patient and will ask for funds over a period of time necessary for the welfare of the common entity. In one such unfortunate instance, the victim spoke to family members and reluctantly admitted he'd been taken advantage of after losing a great deal of money.

This brings us to an additional and serious consequence of fraud: embarrassment. Victims are often ashamed and won’t tell family, friends, or professionals that they’ve entered into a dubious encounter, had their identity or money stolen. There’s no need to feel awkward or ashamed. The crooks are good. They may take your money, but they can’t take your dignity. Today’s fraudsters go where the information and the money is, and today that’s on the internet. If you or someone you know is concerned about being taken advantage of, reach out to local authorities or your trusted CERTIFIED FINANCIAL PLANNER® Professional for assistance. Trust your gut, stay focused and plan accordingly.