I honestly thought things would be different in 2021. A bit
naïve perhaps, but nonetheless I remained optimistic that some issues would
simply disappear faster than New York Jets’ coach Adam Gase after the season
finale.
No such luck.
Take consumer fraud scams for instance.
Over the past several years, I have been contacted by
charlatans claiming to be from, in order: The Internal Revenue Service, the
Social Security Administration, a national credit card fraud clearinghouse and
my banking institutions.
They have threatened me with jail if I didn’t pay what I owe
in back taxes (the IRS calls), claimed my personal information has been
compromised (the SSA and my local bank) or that someone has been using my
charge cards for outlandish purchases.
Most of them urged me to simply re-enter my personal
information or in the case of the phony IRS, just submit a credit card number
and all my outstanding tax liens would be forgiven and thereby avoid a lengthy
prison sentence.
But this week may have been the topper.
With the COVID-19 vaccine finally a reality, a call came the other day offering – drum roll please – an early coronavirus vaccine if I just supplied a credit card, a Social Security number or access to my checking account.
And just like that I could “jump the line” ahead of all those
at-risk seniors and others needing it far more than I and literally and get
stuck. And “stuck” is the operative word.
Sadly, I was not the only one given the opportunity to jump
on this once in a lifetime offer. Apparently, it was widespread to the degree
that the New York Attorney General was forced to issue a warning about such
calls. It’s bad enough when you read
about those who fall victim to these types of scams (mostly elderly) but
somehow this struck me as being far worse than just being fleeced out of money.
The Federal Trade Commission said that fraud has spiked noticeably
since the pandemic as more people are purchasing items online and therefore
easier to fall victim to sophisticated technology techniques to elicit personal
information.
According to the FTC, scams
via social media have jumped. In 2019, the FTC received complaints
of consumers losing $134 million to scams via social media;
in the first six months of 2020, for example, the figure had already hit $117
million.
And trust me it won’t stop there.
There are a number of consumer organizations offering
guidelines on how to avoid these types of scams. But in truth, do what I do –
if you don’t recognize a phone number or an email – do not answer it.
Works every time.
Bill,
ReplyDeleteThank you for this blog post. You hit the nail on the head. This is a horrible and growing problem and it can create crises. This coming Thursday I will be recorded for the "CalCPA Virtual 2021 Personal Financial Planning Conference," and my segment is titled, "Financial Elder Abuse: Society's Shame." These scams are most frequently targeted against the elderly because, they have the money, in a low interest environment they feel they need money, and in their latter years often their cognitive ability is declining and/or they are already suffering from Alzheimer's or dementia. It's indeed sad...and the scammers keep getting bolder and smarter...why? Because the scams work often enough to make it a profitable elicit enterprise.