Scams and frauds targeted at seniors are not unfounded. 34% of Canadians have previously fallen victim to fraud, at a cost of $100 million each year – $20 million of which comes from retirees.
HomeEquity Bank, the leading lender in CHIP Reverse Mortgages has partnered with renowned conman-turned-fraud-expert Frank W. Abagnale. They’ve put together four online classes that teach you to recognize common scams and empower you to protect yourself. Frank Abagnale was wanted for fraud in 12 countries before the age of 21. His life inspired the hit Leonardo DiCaprio film Catch Me If You Can. After serving five years in prison, he started working with the FBI to detect and prevent fraud, forgery, and embezzlement.
HomeEquity Bank recently launched Catch the Scam, a series of online classes dedicated to helping Canadians spot scams and avoid falling victim to them. The series gives viewers the inside scoop from the person who knows the industry better than anyone.
4 of the Most Common Scams
Let’s explore 4 of the most common scams and ways to avoid them. The series of classes comes in the wake of a HomeEquity Bank-commissioned survey. The survey found that 72% of Canadians over 55 believe the number of scams has increased since the beginning of the COVID-19 pandemic. What’s more, 91% believe they’re the most vulnerable target group for scammers, while over half say they have been targeted, with more than a third falling victim. The following are 4 of the most common scams targeted at seniors today and how to protect yourself from them.
The Grandparent Scam
The first scam that Frank teaches us about is the Grandparent Scam. This scam exploits grandparents by calling the recipient pretending to be their grandchild. The caller obviously doesn’t sound like their grandchild, so the scammer will make up an excuse. Perhaps that they’ve broken their nose or are ill. Then they start to lay it on thick. They may say that they’re in hospital or jail and need to be sent money right away. The sense of urgency combined with the emotional nature of the call leads the recipient to act rashly, not rationally. They send money over, and by the time they realize it was a scam, the caller has disconnected their phone.
There are several things your clients can keep in mind in order to avoid falling prey to a distressing call such as this. Firstly, you can verify the caller is who they say they are by asking a question only their real grandchild would know. You should also consult with a trusted family member or friend before taking action. And lastly, always be wary of urgent requests to send money. Watch here https://www.youtube.com/watch?v=-9ze-idWV1o&feature=emb_imp_woyt
The CRA Scam
Next, Frank teaches us about the CRA Scam. This time, you will receive a call from someone pretending to be from the Canada Revenue Agency. Before you have time to cast your mind back to their last tax return, the caller starts terrifying them. Subjects include unpaid back taxes, arrest warrants, and jail time. Scammers provide a way out as long as you pay up now. They may be asked to deposit money in a Bitcoin ATM or buy a pre-paid credit card and provide the serial number. And of course, once you realize the caller isn’t genuine, they’re long gone with their money.
The best way to avoid this scam is to remember that the CRA will always send written communication first. Be sure to contact the CRA on their official number before taking any action. And of course, also be wary of urgent requests to send money straight away. Watch here https://www.youtube.com/watch?v=2CemBNIy6ls&feature=emb_imp_woyt
The Lottery Scam
This scam draws your clients in with a piece of good news – they’ve won the lottery! In their excitement, your client forgets that they haven’t entered this lottery and readily pays the fees requested by the caller in order to release the winnings. Not only is the caller scamming you out of this initial sum of money, but they’re also getting hold of your client’s bank details in order to get more money from them later on.
There are several warning signs that you can keep in mind in order to avoid falling victim to this scam. The first is the age-old adage, if something seems too good to be true, it probably is. Maintain a healthy cynicism and you’re more likely to see through potential scams. Secondly, remember that legitimate lotteries will never ask for fees or taxes upfront. And of course, always be wary of urgent requests to send money. Watch here https://www.youtube.com/watch?v=2q0z3C3neKA
The Romance Scam
Perhaps the cruelest scam of all, the Romance Scam exploits your clients’ desire for love and companionship. Scammers will trawl online dating profiles for older people who they perceive to be wealthy. They strike up an intense online relationship, showering you with love and affection. However, there’s always a reason why they can’t meet in person or even video call. Of course, the real reason is that the scammer isn’t who they say they are.
Once you are fully enthralled in the relationship, then comes the request for money. Perhaps the scammer needs help to get out of a sticky situation or they want to pay for a plane ticket to visit you. Whatever the reason, you can be pretty sure that once they have the money, you won’t be hearing from them again.
Raise your guard if a relationship is moving too quickly. Remember to be wary of any urgent requests to send money and never provide personal or banking information over the phone or the internet. Watch here https://www.youtube.com/watch?v=I5oeanWiMJw
Your Financial Health
Worrying about being scammed can cause a lot of stress and falling victim can be extremely detrimental to their financial health. Heed the warning signs and what you can do when faced with a suspicious caller.
The knowledge to recognize common scams and what to do when they’re confronted with one, empowers you to protect yourselves. Contact me today if you have questions about financial scams and more ways to not fall victim to fraud.
Source: www.chipadvisor.ca
