by Scott Sykes, CISO

Fraudulent activity unfortunately targets vulnerable populations, and our senior citizens are increasingly becoming victims. This is due to a combination of factors, including their potential lack of familiarity with advanced technology and their likelihood to have accumulated retirement savings. This newsletter aims to raise awareness of these scams and provide protective measures.

The Growing Threat:
According to the Federal Bureau of Investigation (FBI), in 2023, scammers inflicted over $3.4 billion in losses on older Americans. The tactics employed are becoming increasingly sophisticated, often preying on anxieties fueled by social media content. Scammers may exploit these fears to manipulate victims into hasty decisions.

Common Scams:

• Tech Support Scams: Criminals impersonate technical support staff from banks or government agencies, claiming to detect unauthorized activity in the victim's account. They urge transferring funds to a "secure" account, typically via wire transfer or cryptocurrency. Reluctant victims may be instructed to liquidate assets (cash or gold) and hand them over to a "courier" for safekeeping. Often, even the courier is unknowingly involved in the fraudulent scheme.

The Scope of the Problem:
The FBI received over 100,000 complaints from seniors (age 60+) in 2023 alone. More than 6,000 individuals lost over $100,000 each, revealing a disturbing upward trend with an 11% annual increase in such scams.

Protection Mechanisms:
If you have elderly loved ones, consider these protective measures:

1. Reduce Exposure to Fear-Inducing Social Media Content: Discourage them from engaging with content that promotes anxiety or paranoia.
2. Become a Trusted Contact: Designate yourself as a trusted contact with your loved ones' financial institutions. This allows the institution to verify suspicious activity and confirm intentions before acting. (See Bank of America's Trusted Contact explanation)
3. Activate Two-Factor Authentication: This adds an extra layer of security by requiring a secondary code along with the password for account access.
4. Enable Account Alerts to also come to you: Set up account alerts via email or mobile device to receive notifications of any account activity. Have these alerts also come to you.
5. Open Communication: Maintain open communication with your loved ones about security and encourage them to seek your advice for any suspicious communications or transactions.

By working together, we can empower our seniors with the knowledge and tools needed to protect themselves from financial scams.