SCAM & FRAUD RESOURCES

Different Types of Scams & What to do

Online Romance or Friendship Scams 

In 2021, older adults lost an estimated $1.3 billion to this type of scam that takes advantage of your sympathy, kindness or solitude. 

  • Scammers take advantage of the kindness of older adults and of those living alone and create fake profiles to develop relationships with them. These tend to be more elaborate schemes, and scammers may develop a relationship for some time before asking for money. Be wary if a relationship from social media or a dating site moves very quickly, or the person asks for money to “help their loved ones” pay for medical care or car and home repairs. 

  • Many of these scammers promise to meet in person or by Zoom or a video call but then cancel at the last minute. Others say they live in a foreign country, don’t have money to travel or can’t get on a video call because they have good internet access. - Be aware of the varying excuses and reasons scammers give to conceal their identity and lead you on. Where emotions are involved, it can be difficult to be objective in this type of situation. It is highly recommended that you seek outside advice and guidance from someone you trust.

  • NOTE: A related scam involves someone hacking into your Facebook or Instagram account and sending messages to your friends asking for money. If this happens, change your password immediately and message all your friends to alert them about the situation.

    Check out this article from the Better Business Bureau about How to Spot a Fake Social Media Account. Learn more about this type of scam from the source: Federal Trade Commission Consumer Advice

False Investment Scams

According to the Federal Bureau of Investigation, adults 60+ in age lost $1.2 billion in 2023 to investment scams.

  • Scammers try to lure older adults into investment opportunities that are a trap or setup to steal your money. They may message you directly through social media or they may advertise the investment opportunities on websites or on social media platforms.

    • Be wary of buzz words. Don’t believe anything that is “guaranteed” or that offers low risk with a high return. 

    • The investment industry is highly regulated. Be wary if investments are unregistered with the SEC or other investment industry regulators. Also, check licensing for the sellers. 

    • High-pressure sales tactics are also a big warning sign. Many risky investments are sold at “opportunity meetings” or other high-pressure situations. A similar tactic is the use of a “shill,” a decoy who offers a fictional success story but is really being paid by the promoter of the plan. Some pitches leverage a shared connection such as the same ethnicity, church, profession, etc.

    • If you find that the reward for recruiting new distributors and selling them products and training materials is more than the reward for selling products, you may be dealing with a pyramid scheme. Pyramid schemes require you to bring in other investors in order to recoup your initial investment.

  • For investment fraud, charity fraud, and counterfeit products, visit the NC Secretary of State's Office website to file a complaint.

    Learn more about this type of scam from our source: The Better Business Bureau.

Tech Support Scams

According to the Federal Bureau of Investigation, adults 60+ in age lost $590 million in 2023 to tech support scams.

  • Scammers may make telephone calls and claim to be computer technicians associated with a well-known company (such as Apple or Microsoft), or use internet pop-up messages to warn about non-existent computer problems. They will pretend to be ‘tech support’ and ask to give them remote access to your computer. They will say they fixed the non-existent problem, but now they have full access to all your personal information and passwords on your computer.

  • Call your computer’s verified customer service support line or visit their store and explain the situation. They can assist with either confirming your computer has no issues or diagnosing a computer issue. 

  • Learn more about this type of scam from our source: Federal Trade Commission Consumer Advice

    Similar type of Scam: Refund scheme

    After victims make payments, perpetrators often call back and offer refunds to victims, claiming their tech support services are no longer available. Perpetrators claim to send refund money to the victim’s bank account but falsely claim that too much money was refunded. Perpetrators then induce victims to send payments (often through stored-value cards such as gift cards), purportedly to reimburse the tech support company for its “over-refund.” Victims have lost hundreds or thousands of dollars to this refund scheme.

Anti-Virus Scams

According to the FBI, adults 60+ in age lost $590 million in 2023 to tech support scams, including anti-virus scams.

  • Scammers send an email claiming that your computer has a virus and instructs you to “click here” or tells you that you need to pay a large sum of money to protect your device from a virus. You may also be instructed to download antivirus software to prevent the virus from spreading. In this case, when you click to download the free program, you actually end up installing the virus onto your device. This then enables them to access any personal information you have stored on your device.

    Red flags: Unsolicited pop-up messages claiming your device is infected or emails with urgent messages about viruses, especially if they ask you to click on a link or download something.

  • Avoid downloading movies or series from untrustworthy sites. Buy an external hard drive to back up everything that is on your computer or use a secure cloud service such as Google Drive or iCloud to avoid losing important information or pictures. You can also consider buying legitimate antivirus software.

  • The Community Tech Network site offers this list of reputable antivirus software options. Last, be skeptical of messages or pop-ups that create a sense of urgency.

IRS or Social Security Imposter Scams

According to the Federal Bureau of Investigation, adults 60+ in age lost $180 million in 2023 to government impersonation scams. 

  • These scammers impersonate government employees such as IRS agents and contact you to tell you that there is an issue with your tax return, that you owe taxes or that your social security number has been suspended. They may tell you that they need to collect your personal information, threaten legal action, or that you must pay something to have your social security number reinstated. These scammers may use fake titles to sound more legitimate. 

  • The government will never make unsolicited calls to ask for this information. If you receive a call and are in doubt, hang up. The Federal Trade Commission will never threaten you, say you must transfer your money to “protect it,” or tell you to withdraw cash or buy gold and give it to someone.

    • Don’t wire money or use gift cards, cryptocurrency, or a payment app to pay someone who says they’re with the government.

    • Don’t give your financial or personal information to someone who calls, texts, emails, or messages you on social media and says they’re with the government.

    • If you think a call or message could be real, stop. Hang up the phone and call the government agency directly at a number you know is correct.

    • Don’t trust your caller ID. Your caller ID might show the government agency’s real phone number or name — like “Social Security Administration.” But caller ID can be faked.

    • Don’t click on links in unexpected emails, texts, or social media messages. Scammers send emails and messages that look like they’re from a government agency but are not.

  • Learn more about this type of scam from our source: Federal Trade Commission Consumer Advice. 

Medicare Scams

Government agencies will never call consumers unsolicited. Instead, they send letters if they need to contact you.

  • These scams start with a call that appears on your caller ID as Medicare or Social Security Administration. Caller IDs are easy to fake, making the call appear legitimate. Scammers may ask to ‘verify your identity’, Medicare number or Social Security number. They may say they need it to process a claim, activate your benefits, or offer you a free piece of medical equipment such as a knee brace.

    • Don’t give out any personal information to a stranger. 

    • Know how government agencies work. Government agencies will never call consumers unsolicited.

    • Don’t answer calls from unknown numbers. If you receive a call from a number you haven’t saved to your contacts, or if your caller ID says “unknown,” don’t pick up the phone. 

    • When in doubt, hang up. If you do answer a call from an unsolicited caller and are greeted by a robocall or even a person who claims to be with a government agency, just hang up. Don’t press any buttons, don’t engage in conversation and don’t ask to be removed from the calling list.

    • If you want to be sure this was an attempted scam, call the Medicare number on the back of your card to speak to someone.

  • The ACL-funded Senior Medicare Patrol (SMP) program can help you learn about Medicare fraud, errors, and abuse; detect potential fraud, errors, and abuse; and report concerns. Find your local SMP at smpresource.org or call 1-877-808-2468.

    Learn more about this type of scam from our source: The Better Business Bureau

Lottery and Sweepstakes Scams

In 2022, older adults lost an estimated $70 million to this Lottery or Sweepstakes scams.

  • You receive a notification saying that you’ve won a contest and you need to pay fees or taxes to access it. If you give them your bank account information, a check is often deposited into your account, but it will bounce after a few days. If you pay the “taxes or fees”, this type of scammer will often keep calling you to try to get more money.

  • Some scammers use the names of real lotteries or sweepstakes. Hang up, find a verified number for the sweepstakes and call them directly. Don’t click on pop-up messages or links in your emails or texts that say you’ve been selected to win a prize. Never give out your bank account information by email or by phone unless you call the bank directly using a verified number. Never pay taxes or fees upfront – these are rarely (if ever) required for legitimate winnings

  • Better Business Bureau - How to spot a fake giveaway

    Learn more about this type of scam from our source: Federal Trade Commission Consumer Advice

Fake Grandchildren Money Request Scams

In 2021, older adults lost an estimated $6.5 million to this type of scam.

  • Scammers usually use a voice disguising software and fake caller ID to make it appear that your grandchild is calling you. Someone who claims to be your grandchild calls and urgently requests money, sometimes claiming fear for their safety. 

  • Hang up immediately, and call your grandchildren directly using their real phone number (do not click redial), or contact other family members to discuss the situation. Don’t give out any personal information or any money. 

  • Learn more about this type of scam from our source: Federal Trade Commission Consumer Advice. 

Fake Charity Scams

  • These scams try to take advantage of your generosity and kindness, and they often emerge during holiday seasons or after a natural disaster. After they get your payment information, they often disappear. Legitimate charities typically do not contact you unless you have sent money before or have requested information. Be wary of any unsolicited contact (emails, phone calls or social media messages) from an unknown charity that requests donations.

  • Google the name of the charity with the keyword “scam” or “complaint” in quotation marks to see if there are any sites with complaints or information about fraudulent activity. Check the name of the charity carefully; they often use a name that is similar to that of a well-known charity. Like the tactics for some of these other scams, they may try to appeal to your emotions by telling you sad stories or by showing you heart-wrenching images or they may try to pressure you by saying there is an urgent need. 

  • For investment fraud, charity fraud, and counterfeit products, visit the NC Secretary of State's Office website to file a complaint.

    Be sure a charity is legitimate by usingCharity Navigator,GuideStar, or theBetter Business Bureau’s Wise Giving Alliance to look for its name.

Reverse Mortgage Scams

  • It’s common to see ads online that advertise reverse mortgages, but many of these companies are not real. Many older adults are on a fixed income from their Social Security benefits, 401(k) plan or pension and sometimes need extra cash. Reverse mortgages have grown in popularity recently, and homeowners can ask the bank to give them some of that equity in a lump sum, a line of credit or with regular payments. 

    Scammers may charge an upfront fee but then never actually provide assistance in securing the reverse mortgage, or they may even try to steal part or all of the money the victim has in equity by requesting the reverse mortgage themselves after getting access to your information and accounts.

    Red Flags

    • The business uses terms that are difficult to understand and explains them poorly.

    • The offer seems “too good to be true.”

    • The lender uses high-pressure sales tactics

    • You get unsolicited advertisements, emails and phone calls.

    • The business tells you not to contact your current lender or speak with a real estate attorney or financial adviser.

    •  Talk with trusted experts, including your financial adviser or real estate attorney.

    • Talk with trusted family members who can help you learn more about the loan and the lender you’re working with.

    • Research your reverse mortgage lender to make sure they’re a reputable company. Visit your lender’s website and social media pages, check their standing with the Better Business Bureau and read reviews from past clients.

    • Before signing any documents, make sure you fully understand your loan. Ask questions about anything you don’t understand and have a trusted loved one or attorney review the documents.

    • Ignore any unsolicited advertisements, phone calls and emails.

  • For investment fraud, charity fraud, and counterfeit products, visit the NC Secretary of State's Office website to file a complaint.

    Learn more about reverse mortgage scams.

Cryptocurrency Scams

According to the FBI, older Americans lost over $3 billion to cryptocurrency fraud in 2022. Typically, cryptocurrency, also known as crypto, scams arise from romance/friendship scams. 

  • Cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any centralized authority, such as a government or bank. These types of scams often arise from romance/friendship scams. The bogus relationship blossoms and the scammer directs the victim on how to “invest” in crypto. Scammers often direct their victims to use crypto/bitcoin ATMs or other cryptocurrency outlets. If an online love interest is asking you for money, it’s probably a scam, and do not send the money.

  • If someone asks you to send them money through cryptocurrency/bitcoin, do not send them money. Be skeptical of anyone you’ve never met in person, and don’t share any personal information, including your address and banking information.

  • If you think you may be getting scammed, reach out and ask for help from someone you trust. Call the NC-211 hotline (dial 2-1-1) or file a complaint with the NC Attorney General's office.

STAYING SAFE ONLINE

How to Spot a Fake Websites

Learn the different parts of a website address, also known as a link or URL (Uniform Resource Locator) and how to spot suspicious ones. Learn more about identifying a fake website from our source, the Better Business Bureau.

Understanding the Elements in a Website Address

Knowing these parts of a website URL will help you spot malicious website links. Criminal hackers will often use very slight variations of trusted sites to trick you into thinking you are safe to visit them.

As an example, we’ll review the Social Bridging NC website address: https://socialbridgingnc.org. There are four main parts to a website address, also known as a link or URL.

  1. The Scheme: HTTPS
    This stands for Hypertext Transfer Protocol Secure. This tells your web browser to conceal and encrypt any information you enter on the website, like passwords and credit card information, so cybercriminals can’t access it. Ensure the scheme has the ‘s’ at the end of, not just ‘http.’ The ‘s’ adds an extra layer of security and protects your information. 

  2. The Domain
    This is usually the name of the company or organization’s website you are visiting. In our example, the ‘socialbridgingnc’ is the domain.

  3. The Subdomains
    The subdomain can help an entity organize different sections of a website. If you imagine a house, the subdomains are like the specific rooms - all have different names to define different areas of the home. ‘www’ is the most common subdomain, but some websites have optional subdomains that are different. In this address for State Employees Credit Union, https://locations.ncsecu.org/search, “locations” is a subdomain.

  4. The Top-Level Domain
    The Top-Level Domain typically denotes the type or location of the website. Common examples are: .com (commercial), .org (organization), .gov (government), and .edu (educational institutions).

Phishing

A common attack used by online scammers or cybercriminals is known as phishing. Phishing is a fraudulent practice of sending emails, text messages, or other forms of communication posing to be from reputable companies in order to trick individuals to give out personal information, such as passwords or credit card numbers.

Scammers may do this by asking to verify personal information, click a link or download an attachment from an email. If you click on the link or download an email attachment from an unknown source, you could unknowingly be giving scammers full control of your computer. When in doubt, don’t download any attachments, click links or give out any personal information to strangers. 

Check out this article on How to Recognize a Phony Email and learn more about phishing from the Better Business Bureau. 

Here are some of the most common elements of an attack of this kind and some safety tips you can use to prevent the attack:

  • Emails disguised as contacts or organizations you trust are used so that you react without thinking first. Check to see if the email address! If it is misspelled or if it came from an unknown sender, do not open it, click any links or download any attachments. 

  • The email message creates a sense of urgency, such as stating that immediate action is required.

  • The email includes unexpected attachments or suspicious links.

  • The email includes requests for personal information.

If you have any of the red flags listed above, a cybercriminal may be trying to install malicious software onto your device or network. If you are unsure if an email is safe or not, verify the request from the suspicious email through other means of communication. For example, if your bank sends a suspicious email asking to verify personal information or give out your bank account numbers, call your bank directly (search for their phone number through Google, not a phone number provided in the suspicious email) or visit a local branch in person. Your bank will verify if that email or request for information was legitimate or fraudulent. You can also copy the suspicious link and check it through this ‘link checker’. 

If you are having any of the following issues, you may already have a malware infection:

  • Slow computer performance

  • Frequent pop-up ads

  • Your web browser takes you to sites you did not intend to visit.

  • You have problems shutting down or starting up your computer.

If you have any of these issues, take your computer to an electronic repair store for assistance.

back to scam and fraud resources