Nationwide Increase in Scams Targeting Seniors’ Financial Accounts, Reports FBI
Senior citizens across the country have become victims of a rising trend in “phantom hacker” scams, which have had a significant impact on their finances. These scams involve fraudulent activities that result in the loss of entire bank accounts, savings, retirement funds, and investments, according to the FBI.
The “phantom hacker” scams are an evolution of tech support scams, a form of cybercrime. In August 2023, the losses from tech support scams saw a 40% increase compared to the same period in 2022, as stated in a recent public service announcement by the FBI. However, the exact total dollar loss during that period was not disclosed.
The FBI revealed that half of the victims targeted by these scams were over 60 years old, and they accounted for 66% of the total financial losses. This age group tends to have a larger nest egg, making them more attractive targets for criminals. Additionally, older adults are more cautious about preserving their life savings, making them vulnerable to these sophisticated scams.
Gregory Nelsen, the FBI Cleveland special agent in charge, emphasized that these scammers are highly calculated and cold-hearted. They exploit the victims’ own vigilance and mislead them into believing that their assets are at risk. Nelsen added that the criminals pose as computer technicians and later as officials from financial institutions or the U.S. government to persuade victims to transfer their money to supposed “safe” accounts for protection.
However, none of the claims made by these scammers are true. The money is ultimately controlled by the fraudsters, who are not affiliated with any foreign hackers or legitimate organizations, according to the FBI’s Cleveland bureau.
Between January 2023 and June 2023, approximately 19,000 victims of tech support scams lodged complaints with the FBI, amounting to estimated losses exceeding $542 million. In comparison, there were 33,000 complaints and losses totaling $807 million throughout 2022, according to FBI data.
To help consumers avoid falling victim to these scams, the FBI has provided five crucial tips:
1. Don’t trust unexpected calls or emails claiming to be from reputable companies or government agencies.
2. Avoid giving out personal or financial information to unknown individuals or entities.
3. Refrain from allowing remote access to your computer or sharing screen access with unauthorized parties.
4. Resist transferring money or making payments to unknown accounts or individuals.
5. Report any suspicious activities or encounters to local law enforcement or the FBI immediately.
By following these guidelines, individuals can protect themselves from becoming victims of financial scams and maintain the security of their hard-earned money.
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