March is Fraud Prevention Month. This month is an important opportunity to learn how to protect ourselves from fraud and scams. Losing money to fraudsters can be devastating, especially for elders. Every year, elders lose billions of dollars to fraud and scams, forms of financial elder abuse. In many of these cases, recovering the money lost is impossible, making it ever more important to prevent fraud and scams before they happen.
Fraudsters are cunning and crafty. They are constantly coming up with new ways to trick us into sending money or sharing personal information. Many scams and fraud schemes share similar characteristics however, and by learning these shared characteristics, we can learn to spot new fraud schemes that we encounter. Continue reading to learn more about how to spot fraud and scams.
Payment Method
Many fraudsters ask us to send money via payment methods that are hard to reverse or trace. If it were easy to trace and reverse our payments, it would be easier to recover our money, and fraudsters don’t want us to be able to recover our money. Many fraudsters won’t accept credit cards or debit cards because it’s so easy to track payments made using these methods. Fraudsters like wire transfers, gift cards, cryptocurrencies such as Bitcoin, and cash. Fraudsters also use peer-to-peer apps, like Venmo, Zelle, and Cash App because these services don’t have the consumer protections that banks or credit unions offer. Beware of anyone who asks you to send money via any of these methods. While peer-to-peer apps can be safe to use, never accept a request from a stranger for money and never send money to people you don’t know. If someone won’t accept a credit or debit card, be cautious when sending money, especially to a stranger. If someone you have never met in person (including someone you met online) is asking you for money, be very careful.
High Pressure Tactics
Fraudsters and scammers understand human psychology and seek to exploit basic human instincts. Fraudsters may tell us that an offer might be good for today only and we must act quickly. They put pressure us to make a deal right then and there. This makes us more likely to act because we naturally don’t want to miss out on an offer or opportunity.
Many scams and fraud schemes involve telling us that something horrible has happened or is going to happen if we don’t do what the fraudsters say. They may tell us that someone we love is in trouble, maybe that someone we love is being charged with a crime or is in jail. Or they may tell us that we are in trouble and the only way to fix the trouble is by sending them money. Fraudsters and scammers do this to get us worked up emotionally. They do this because they know what when we get worked up emotionally, we feel pressure to act, and we stop thinking clearly. When we stop thinking clearly, we’re more likely to do what the fraudsters say. When someone is telling you that something bad will happen, it’s important to take a step back and breathe, and think things through slowly.
You’re Told to Keep it a Secret
Oftentimes, fraudsters tell us to keep whatever they’re telling us a secret from others. They may tell us that we cannot tell our loved ones what is happening because our loved ones or ourselves will be in trouble if we tell. Fraudsters do this because they know that if we discussed what was happening with others, we’d spot the fraud and put a stop to it. There’s no good reason why we shouldn’t be able to tell our friends or family what’s happening. If someone is pressuring you to keep something a secret, it’s likely a scammer.
The Person You’re Talking to Keeps You on the Phone
Scammers often try to keep us on the phone because they know that if we hang up, we’re more likely to recognize the scam. Scammers might even tell us to stay on the phone with them while we go out to the bank to wire them money or go to the store to buy gift cards to send them. If someone tries to keep you on the phone and doesn’t want to end the call, it’s probably a scammer and you should end the call immediately.
You Have to Pay Money to Get Money
Anytime you have to pay money to get money, it’s probably a scam. Scammers may tell us that we’ve won a prize, and we must pay a fee or pay the taxes up front before we can collect our prize. This is a scam, and you shouldn’t pay any money for this.
Getting Help with Scams and Fraud
If you have been scammed or had your identity stolen, contact Contra Costa Senior Legal Services at (925) 609-7900. We can help you report scams and identity theft and offer advice on how to protect yourself in the future.
Contra Costa Senior Legal Services gives presentations on scams, fraud, and identity theft and on elder abuse. The following presentations are open to the public. Please call us with questions.
Upcoming Presentations
What: Protecting Yourself: Elder Abuse and Financial Scams
When: March 10, 11am-12pm
Where: Ygnacio Valley Library, 2661 Oak Grove Rd, Walnut Creek CA 94598
What: Take Charge! Safeguard Your Assets and Identity, a discussion of scams, fraud, and identity theft
When: March 12, 11am-12pm
Where: Lafayette Senior Service Center, 500 St. Mary’s Road, Lafayette, CA 94549
What: Take Charge! Safeguard Your Assets and Identity, a discussion of scams, fraud, and identity theft
When: March 26, 1pm-2pm
Where: Richmond Annex Senior Center, 5801 Huntington Ave, Richmond, CA 94804
What: Take Charge! Safeguard Your Assets and Identity, a discussion of scams, fraud, and identity theft
When: April 14, 11am-12pm
Where: Ygnacio Valley Library, 2661 Oak Grove Rd, Walnut Creek CA 94598
What: Take Charge! Safeguard Your Assets and Identity, a discussion of scams, fraud, and identity theft
When: April 30, 11am-12pm
Where: San Ramon Library, 100 Montgomery Street San Ramon, CA 94583. Conference Room