Fraud Prevention Tips for Seniors
Seniors are attractive targets for scammers and fraudsters due to the following reasons:-
They tend to be trusting and polite
They may have some financial savings
Their house is generally fully owned
They have good credit
They are less inclined to report fraud due to embarrassment
They may not understand new technology
They may not be internet and computer savvy
They may be in a lonely and vulnerable emotional state after losing a long term partner
Some of the most common scams targeting older Australians are:-
Dating and Romance
Romance scammers create elaborate fake profiles to exploit loneliness of seniors for money, goods or to gain personal information. According to Scamwatch, in 2020 there were 3,708 reported romance scams, costing Australians $39 million, however there may be many more that remain unreported.
Have a look at this short video from Consumer Affairs Victoria:
Investment scams
These scams promise that there will be easy money, large payouts or guaranteed returns. The investments usually don’t exist and the scammer will be pocketing the money themselves. These scams have started to piggy back off romance scams, with dating site victims being groomed to invest in shonky investments.
Have a look at this short video from Consumer Affairs Victoria:
Unexpected prize and lottery scams
These scammers send genuine looking letters or emails and advise that you have won a prize. They then ask for some type of fee in order to claim the winnings from a prize or lottery scam. They also request your bank details.
Have a look at this short video from Consumer Affairs Victoria:
Inheritance scams
The scammer uses the story of a person that is deceased, and has left an inheritance, to the intended victim of the scam. A letter or email will be sent reportedly by a law firm to advise that a long lost relative has passed away and the victim is the sole recipient of the estate. They then ask for a small amount of money for an admin fee and request your bank details. The scammer then has your identity plus your bank details
Rebate scams
Scammers pretend to be from a bank, government department or insurance company. They call or email you to say you are owed money and request your bank details. They also ask for an admin fee before the rebate is processed.
Here is a short video produced by Consumer Affairs Victoria:
Home maintenance scams
These door-to-door scammers advise they can fix leaky roofs, install new windows, install solar panels, paint your house, do your gardening etc. They exert pressure for the victim to make a quick decision and ask for a deposit on the spot. They either take off with the money; or they do the repairs and they are substandard. They often bill for additional work that was not agreed upon, or greatly inflate the cost of the service.
But of course, there are a multitude of other scams such fraudsters trying to get remote access to your computer; sending fake emails with a virus to gather your bank details; stealing your identity through mail you have received, and so on. Small business owners are busy people. They are good at what they do, but setting up systems that protect their cash, their stock, or their time might not be a strong point.
Some tips to avoid scammers and protect yourself are:
Be wary of romantic intentions expressed by someone online; and who you haven’t spoken to or seen via webcam
Don’t send money or gift cards to people you don’t know
Check investment advisers have an AFS licence and that an investment prospectus has been registered with ASIC
Don’t give your bank details to strangers – they can use them to wipe out your savings
Don’t open suspicious emails or click on attachments – if in doubt call the company they are supposedly from to check the validity of the attachment
Make sure that you don’t throw away bills or personal letters before redacting your details, or shredding them
Don’t fall for phone scams telling you that you need to give remote access to your computer
Don’t share passwords with anyone - use a program such as Lastpass (which is free) to keep them safe without writing them down
Ask for ID from charity workers that come door knocking – they will have some official documentation from the charity that they can show you
Don’t be pressured into paying cash deposits for home repairs – ask for references, proof of license, and insurance; and obtain 3 quotes for comparison
Beware of requests for admin fees to obtain an inheritance or for a government rebate. Legitimate businesses will never request an admin fee before paying money to you
Don’t reply to emails you think are scams – this legitimizes your email address and can lead to more scams
The ATO and other legitimate businesses will neve request payment in the form of gift cards, iTunes card, gift cards or bitcoin.
Make sure computer antivirus and malware software is up to date
Don’t click on pop-ups on your computer as they can be used to install viruses
If you get an email or call to tell you have won a prize for a competition you haven’t entered – be suspicious and never pay money or give bank details in the hope of receiving the prize