Advances in modern technology have been accompanied by a significant rise in scams and fraud schemes. While individuals of all ages can be victims of fraud, many scam artists target older adults specifically. This happens because older adults are sometimes less familiar with the technology they are using and usually have more money and assets saved up than younger individuals. Scammers are talented and are constantly evolving to use new technologies to trick their victims. This series of blogs focuses on explaining the most common fraud schemes targeting older adults and how you can spot, stop, and report them.
Business Imposter Scams
What are these scams, and how do they work?
Business imposter scams happen when someone pretends to be a reputable or familiar business. They may contact you via phone, email, or text, or they may pop up on your computer/tablet/phone when you try to download an app or access a link on the internet.
These scams usually pretend that there is an issue with your electronic device (like a virus), or an issue with your account (i.e., it has been hacked, your order is delayed, someone is trying to send money, etc.). These scams will try to get you in communication with the scammer and then will try to get you to send a payment or give personal information. If the scammers try to get a payment, they will usually ask for it via a gift card, cryptocurrency, or money wire, so that it is harder to get back. They may also ask you for your personal information like a social security number or they may ask you to give them remote access to your computer or other electronic device.
How big is this problem?
In the first quarter of 2024, the scam type most commonly reported by adults age 60+ was business imposter scams. In just the first three months of this year, there were 26,747 reports of business imposter scams by adults in this age group. Losses for victims age 60+ from just this first quarter of business imposter scams totaled $88.57 million. It’s important to note that the actual number of scams and losses is higher than this since not all scams are reported.
How can I recognize these scams? And how should I respond?
There are a few ways that you can prepare yourself to recognize a business imposter scam.
- If you receive a text, call, email, or other communication from a company that you are not expecting to hear from, do not click any links or respond.
- Remain calm. Most scams depend on creating a sense of urgency and encouraging victims to act fast.
- Determine if it’s legit. These guidelines may be helpful to you:
- Tech support specialists from reputable companies DO NOT cold-call people, so if you receive a call purporting to be a type of tech support, it is almost definitely a scam. (Even if your caller ID says the call is coming from a legitimate company, it could still be a scam.)
- Legitimate computer companies do not put their phone numbers on security warnings and do not generally advise people to call them. Instead, legitimate computer companies prefer to use online guides and digital diagnostic and repair programs as a first step in solving tech support issues. If you see a pop-up or virus warning on your computer advising you to call a number, it’s a scam.
- Go right to the source. Instead of clicking on a link that was sent to you via email or text, use your phone or computer to go to the company website. For example, if you get a text saying that there is an issue with your Amazon account, instead of clicking on the link or calling the number in the text, use your phone or computer to go to the Amazon website. Check on your order there and contact customer service through their legitimate website.
- Google the message you received. Use your phone or computer to Google search “Amazon scams,”, “Amazon text scams,” or even type in the first sentence of the text you received and add “scam” at the end. Chances are that other people have gotten the same text and identified it as a scam.
- Ask a friend or family member. Show them the text, email, or pop-up and talk through why you think it might be a scam, they may be able to help you reason out the facts.
- If you can identify that the communication is a fraud, you can immediately delete it or simply ignore it. Do not respond to the message or try to tell the person you know it’s a scam. Just ignore it. If you are interested in reporting the incident see information on reporting below.
When in doubt, ignore the message and do not click any links.
What if I made contact and then realized it is a scam?
Let’s say you thought a message was legitimate, and you end up on the phone or communicating with someone claiming to be a representative from a company. Remember these key things:
- Do not EVER give out personal information like your social security number or bank information. If someone is trying to get this information from you, it’s not from a reputable company.
- Do not allow them to connect to your electronic device.
- If someone is trying to do this and you think they might be scamming you, tell them you’d prefer to come into the store. If someone from Best Buy’s Geek Squad is encouraging you to let them connect remotely to your computer, tell them, “You know what, I think I’ll just bring my device into the store; thank you!” If it’s a legitimate Best Buy representative, they will likely say, “Okay, can I help you find the nearest location?” Whereas a scammer may desperately convince you to solve the issue on the phone or may even hang up on you.
- Do not wire money or send money in other ways that are generally hard to get back. If a business mentions cryptocurrency, gift cards, cashier’s checks, or wiring money, this should immediately raise alarm bells. No legitimate business will ever require payment via any of these methods.
What else can I do?
It is helpful to keep apprised of new trends and data that emerge around scams and fraud. The Federal Trade Commission (FTC) is constantly sharing new information about how consumers can keep themselves safe. They recently published new data on the most impersonated companies in 2023.
Information like this can be especially helpful, so consumers can take extra care in protecting themselves. You can also sign up for Consumer Alerts through the FTC.
You can view scam and fraud trends in your state and metro area to better understand how scammers might be acting in your region.
How do I report a scam or fraud?
Hopefully, by following the guidelines above you will be able to spot and stop any scammers targeting you. Whether a scammer succeeds or not, you can report scams to the FTC. This can help them identify trends and stop scammers. To report a scam or fraud, click here.
Sources:
https://consumer.ftc.gov/features/pass-it-on/impersonator-scams/business-impersonator-scams
https://consumer.ftc.gov/consumer-alerts/2024/06/recognize-business-and-government-imposters-who-want-your-money
https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2024/05/whos-who-scams-spring-roundup
