Preventing Senior Scams

by Reed C. Fraasa, CFP®,AIF®, RLP®

 One of the harmful outcomes of the quarantining from Coronavirus is the increase in scams targeting seniors. Seclusion puts seniors at a higher risk because the loneliness can lead to greater vulnerability. In a previous article, "Don't Fall for These Common Financial Scams", AnnaMarie Mock, CFPâ described many common financial scams and noted that everyone, young and old alike, can be a target for fraud. However, seniors are especially at risk because they typically have more assets to lose and may have diminished capacity.

Unfortunately, one of our dear clients recently was the victim of a telephone scam targeting seniors. Someone was posing as a "computer security agency," warning her that they were monitoring hackers who were on her computer at that moment. They said it was urgent that she works with them to her out of it and catch the hackers. What followed was a confidence scam that persuaded her not to tell anyone and to purchase grocery store debit cards in the thousands.

Warning signs for a scam:

  • Scammers make unsolicited phone calls or place misleading pop-up Internet advertisements to try to convince unsuspecting computer users that something is seriously wrong with their computers that must be fixed immediately.

  • Scammers typically use untraceable prepaid cell phones with phony id numbers.

  • Scammers often pose as representatives of reputable, well-known computer or software companies.

  • The scammer often asks to access the person's computer remotely once a scammer has a person on the phone. Once inside, the scammer can download malware, steal passwords, or try to sell unnecessary services or products.

  • Scammers can be very persuasive and may get some personal information through obituaries, social media, or other sources to convince you of their legitimacy.

  • Scammers often try to trick people into paying for services they don't need by opening a computer program that logs various activities, like error and warning messages. The scammers use these messages, usually simple notations that occur when a computer is functioning normally, to convince people that something is seriously wrong with their computer.

Tips to Avoid Computer Scams and other Scams like Social Security Scams and IRS Scams: 

  • If someone calls you offering technical computer support or claiming your computer has been infected with a virus or hacked, hang up. LIKE THE IRS AND SOCIAL SECURITY, NO COMPUTER COMPANY CALLS PEOPLE, NOR CAN THEY MONITOR YOUR COMPUTER UNLESS YOU GIVE THEM PERMISSION. 

  • If you receive a pop-up message directing you to call a telephone number for assistance with your computer, DO NOT CLICK ON THE IMAGE OR CLICK THE X OR RED CIRCLE TO CLOSE THE WINDOW. INSTEAD CLOSE YOUR BROWSER AND THEN REOPEN THE BROWSER – THE WINDOW SHOULD BE GONE. ALSO, NOTE THE WEBSITE YOU WERE ON AND AVOID THAT WEBSITE.

  • Be wary if a person asks for payment in an unusual form, such as through gift cards, wire transfers, or a check to be picked up by a courier. NO REPUTABLE AGENCY, COMPANY, OR INDIVIDUAL WILL EVER ASK YOU TO USE GIFT CARDS OR DEBIT CARDS TO MAKE A PAYMENT.

  • If your device has been infected by a computer virus or does not work, first power down the computer by holding down the power button until the computer shuts down. Then take it to a reputable local company to fix it. IF YOU HAVE BEEN SCAMMED, YOU COMPUTER WILL LIKELY NEED TO BE TOTALLY FORMATED, WIPING OUT EVERYTHING AND THEN BE REBUILT BY A REPUTABLE COMPUTER TECHNICIAN.

  • Make sure your computer has up-to-date antivirus, anti-malware, and anti-spyware software.

What to Do if You've Been Scammed:

  • If an unknown person accessed your computer remotely, disconnect your computer from the Internet immediately, turn it off, and take it to a reputable computer technician for inspection.

  • If you provided a credit card or bank account information to the scammer, contact your financial institution to notify it of the incident and dispute any inappropriate charges.

  • If your data was compromised, consider taking steps to protect yourself from identity theft by placing a fraud alert on your credit report, freezing your credit report, and monitoring your credit report and financial accounts for unauthorized activity.

If you have friends or family members who are elderly, frequently remind them of these warning signs and what to do if they receive any phone calls or pop-ups on their computer. Our client is a very bright, intelligent person, but the scammer was very convincing. Please share this message with your family and friends.

IF YOU EVER RECEIVE A CALL OR POP-UP AND DON'T KNOW WHAT TO DO, PLEASE CALL US, ESPECIALLY IF YOU ARE TOLD TO TELL NO ONE.

Author’s Bio

Reed C. Fraasa is a CERTIFIED FINANCIAL PLANNER™ and founder of HIGHLAND Financial Advisors, a Fee-Only financial planning firm that offers comprehensive financial planning, retirement planning, and investment management. Reed has 30 years of experience as a fiduciary advisor and is the author of The Person is the Plan®, a unique financial planning process. Reed was a frequent guest contributor on PBS Nightly Business Report and has been featured in the New York Times, Wall Street Journal, and Star Ledger newspapers.