Fraudsters are leveraging dastardly tactics and new technologies to make their scams more convincing than ever. Seniors are a prime target, but anyone can be a victim of the onslaught of scams. Insurance agents can help by warning clients about new fraud trends.
The Grandparent Scam Has Gone High-Tech
You receive a call from your grandson late at night. You recognize his voice immediately, and he sounds panicked as begs for money to bail him out of jail. He also asks you not to tell his parents. You send the money.
Unfortunately, you’ve just been scammed. The person on the other end of the phone wasn’t your grandson at all – it was a scammer equipped with information mined from the internet as well as new AI-powered voice cloning tools that can mimic anyone’s voice from a short sample. According to the FCC, these high-tech additions are a twist on the common grandparent scam.
Imposter Scams Are Proliferating
The grandparent scam is just one of many ways scammers try to separate their victims from their money. In other scams, fraudsters pose as:
- An IRS or other government employee, demanding payment immediately under the threat of arrest.
- A bank representative, possibly claiming that they have detected unusual activity on the person’s account.
- A Medicare representative, offering benefits the person hasn’t requested in exchange for the person’s Medicare number.
- A tech worker, claiming to have noticed a virus on the person’s computer and asking for remote access to fix it.
- A company offering financial assistance – for example, to eliminate or reduce debt.
These are just a few common imposter scams. Fraudsters are always trying new scams or new variations of old scams.
Urgency vs. the Long Con
Many scams try to create a sense of urgency. They pressure victims into acting quickly – possibility under the threat of arrest – so that victims don’t have time to think or verify.
However, other scams take a more subtle approach. Romance and investment scams, for example, often try to build a sense of trust before scamming the victim. The wrong number scam is a classic example. Someone sends a text message that appears to be meant for someone else. The recipient responds to say it’s the wrong number. The scammer uses this interaction to start a conversation and to eventually segue into the scam.
This may coincide with a pig butchering scam, in which a scammer convinces the target to make a series of small investments before pushing for the big payment. The scammer will provide spoofed evidence to make it look like the initial investments are profitable, possibly even giving some money back to build the victim’s trust.
Scammers Will Use Any Means of Communication
Scammers target potential victims via any means of communication, including:
- Websites. Fake websites look like legitimate organizations, tricking visitors into providing their payment information or passwords.
- Emails. Phishing emails frequently appear as if they are coming from legitimate companies and email addresses.
- Text. Phishing may also occur via text.
- Phone. When impersonating a loved one, scammers may use voice cloning technology.
- Video conferencing. Although it’s less common, deepfake technology does make it possible for scammers to impersonate people over video conferencing platforms, much like voice cloning.
Help Your Clients Stay Safe
A single scam may be financially devastating, especially for a senior living on a fixed income. Share the following tips:
- Guard your personal information. This includes passwords, one-time security codes, bank numbers, Social Security numbers, and Medicare numbers.
- Be wary of impersonations. Scammers can clone voices, spoof phone numbers, and hack email accounts to make it look like they’re someone else. If someone calls you unexpectedly and asks for money or personal details, don’t engage. It’s probably a scam.
- Agree on a way to confirm the identity of loved ones. This could be a password you say to confirm the person is who he or she claims to be and not someone using voice cloning. Alternatively, ask a question that only the real person would know the answer to – not something that someone else could find online.
- Don’t accept overpayments. This is a common scam: someone sends you a check for more than the correct amount and asks for a refund of the excess. The initial check will ultimately be bad, meaning you’ll lose the amount you refunded.
- Don’t refund accidental payments from strangers. Report payments to the financial institution and let the company handle it. Pretending to send money to the wrong account by mistake is a common scam. Plus, the money may be stolen.
- Don’t respond to requests for gift cards, wire transfers, or cryptocurrency payments. Scammers often demand payment via these methods.
- Don’t respond to wrong number texts. Unfortunately, these are often scams. It’s best not to engage.
- Don’t answer spam calls. If you use a smartphone or caller ID, your phone carrier may label certain numbers as potential spam. Don’t answer these. Likewise, if you get a call from a number you don’t recognize, avoid answering whenever possible. If it’s important, the person will leave a message. Saving all your contacts (including legit businesses) to your phone will make it easier to recognize known callers.
- When in doubt, ask for help. The scammer may be pushing you to act immediately, but don’t give in. Seek outside advice if you’re unsure whether you’re being scammed.
The FTC has more information, including on how to report scams, at https://consumer.ftc.gov/articles/how-avoid-scam.
Offering tips to help clients avoid new fraud schemes is just one way insurance agents can provide value throughout the year. Do you need assistance with your client retention strategies? The dedicated team at Western Asset Protection can help. Contact us today.