By Nicholas Hamner
Investment Advisor Representative
[email protected]
If recent events hold true, by the time I finish writing this article, I will have three new phone calls and three new voicemails left on my cellphone. Each one trying to follow up on a loan application I didn’t file for money I don’t need. And if I look at my texts, there are probably three or four numbers I don’t have saved as contacts looking to reconnect, a couple of messages from the Turnpike Commission saying I have overdue fines and they’re going to take legal action, a message from my eye doctor asking me to please come pick up the glasses I ordered in November, and an alert from Wells Fargo that someone is attempting to access my checking account.
Of all of those, only the message from my eye doctor is legitimate. Everything else is someone trying to steal my money or my identity.
The loan calls? They’ll surely want me to verify my identity—Social Security number, mailing address, and birthdate at a minimum. Those numbers that I don’t recognize, who are trying to reconnect with me? Very likely “bleed the pig” scammers trying very hard to form a relationship with anyone and then scam them into sending them money. The Turnpike texts want me to pay tolls and fines I don’t owe to a party that almost certainly isn’t the Turnpike Commission. And the Wells Fargo texts are trying to access my accounts by fooling me through a fake password reset process.
How am I so certain these are scammers and nothing legitimate? I haven’t filled out a loan application in 20 years. Everybody I know or need to know is already saved in my phone; there’s not a group of old law school friends out there trying to reconnect with me. The Turnpike texts don’t link to paturnpike.com (and I’ve had E-ZPass since I moved up here). And I don’t have any accounts with Wells Fargo.
And even if I’m wrong about all of that? If any of these groups are really serious, they’ll send a letter to my house. And if it’s really important, the letter will be on fun-colored paper!
If all of that sounds dismissive, ignorant, or rude… that’s because it is. These are scammers, and you have to be that way when criminals are trying to steal from you. They want you to remain polite, to be sympathetic, and to act within accepted societal norms. If you’re not sympathetic, they can’t play on your emotions and goad you into making an irrational emotional decision. If you’re not polite, they can’t goad you into a conversation you otherwise wouldn’t have. And if you’re not acting within social norms and obeying authority, they can’t pretend to be an authority and demand you do something you normally wouldn’t.
Per the AARP, those 60 or older lost $4.9 billion (with a “b”) to scams in 2024, the last year we have good numbers for. Of those that fell victim to a scam, the average loss was just north of $80,000. What scams did they fall for? Number one was investment scams… always a concern, which is why our industry is so regulated and why we, Franklin Retirement Solutions, are so transparent in everything that we do. Other big moneymakers for scammers were tech support scams, cons & romance scams (the bleeding pig I mentioned earlier), and work-related email scams—usually involving someone impersonating a boss and asking employees to pay X or send money to Y. Not on the list but still popular are the “grandkid in trouble” phone scams, contractor scams, mechanic scams, fake sweepstakes scams, fake law enforcement scams, and fake cruise scams. And while most of these sound easy to avoid, you only have to fall for one. And it might be one that’s not on this list.
Why are seniors targeted? According to Scientific American and the FBI, seniors are big targets because:
- They are the fastest-growing and wealthiest segment of the population
- They are more likely to suffer declines in cognitive ability that can impair decision-making
- They are more likely to suffer life changes that can impair decision-making (losing the spouse that handled finances, fatigue from long illnesses, etc.)
- They are less likely to keep up with technology changes
- They were raised with more respect for authority
- They have a higher trust of strangers
No one wants to think they will be the victim of a scam. After all, those descriptors aren’t incredibly flattering. Reading that list, I’m pretty sure ¾ of you scoffed at at least one and said, “Not me.” But people still get scammed every day. So whether or not you think you’ll be the victim, your chances of becoming one are increasing. Daily.
What are some things you can do to avoid being scammed?
- Be skeptical. Just because someone says they’re from a bank doesn’t mean they are.
- Be rude. Stop being polite to strangers. Especially those who approach you. The down-on-their-luck guy sleeping in the bus stop? You’re fine giving them a couple bucks. The smiling man at your doorstep offering a discounted roof if you pay cash today? Shut the door.
- Be skeptical.
- Don’t publish obituaries. Yes, scammers read obituaries and target the grieving family. There are numerous other ways to honor lost loved ones. Do those.
- Be skeptical.
Most importantly, stay informed. Agencies including the CFPB, the FTC, the FBI, the DOJ, and the FDIC all put out information on scams, as do the AARP, the American Bankers Association, and the National Council on Aging .
Is all of this a lot of work? Yes, it is. But it took a lot of work to make this money; it’s going to take a lot of work to keep it. Is all of this proof that the world is going downhill? Probably, but the ancient Greeks had financial fraud 2300 years ago, so it’s not a new phenomenon.
And I was wrong. I did not get three fake loan calls while writing this. I got two.