(Pictured: Scammers imitate voices in phone calls by manipulating voice clips.)
Amid technology advances enabling scammers to commit fraud, elders and their loved ones need to stay informed.
Typically, elder scams involve the transfer of money to a stranger or imposter for a promised benefit or good. In 2023, banks reported more than $27 billion in suspicious activity related to elder scams, according to the Financial Crimes Enforcement Network, and reports filed by the public to the Federal Bureau of Investigation indicated an average loss of more than $33,000 per case. And these numbers may be conservative, as cases may be underreported.
One technology behind these staggering figures is artificial intelligence (AI). Advanced methods of masking one’s identity using AI make it difficult to detect fakes. Voice print – or voice clone – scamming is becoming more of an issue when it comes to impersonation fraud. Using voice clips from social media or by calling and having a brief conversation with someone, criminals can generate an imitation to be used as part of their ruse.
“Older adults are often easier prey for these types of fakes, because a recognized voice when applied to certain scam strategies is often enough to elicit action,” said Mark Kwapiszeski, head of enterprise fraud at PNC Bank.
Most scams generally follow one or two main strategies: Elicit strong feelings and apply a sense of urgency to get someone to act quickly before thinking, and/or entice someone with an offer that seems too good to be true, yet too alluring to pass up. Here are some of the more common types of elder scams:
• Tech support. A caller claims they need to remotely access the victim’s computer to fix a software problem, then use that access to steal personal or financial information.
• Government imposter. The fraudster may say a victim owes a debt that must be paid immediately or face arrest, asset seizure, or termination of benefits.
• Grandparent. An elaborate story is given by phone, claiming a loved one is in trouble and needs money to be protected.
• Investment. The scammer makes claims of a high-return investment to trick the victim into giving them money, often asking to be paid in an unconventional way, like cryptocurrency, where there’s little to no chance of recovering the funds.
• Romance. The scammer develops a fake identity and creates the illusion of a romantic relationship to manipulate or steal from the victim.
• Lottery/sweepstakes. Scammers by phone or mail tell the victim they’ve won the lottery or a sweepstakes but must remit a processing fee before they can get their prize.
The most effective way of preventing fraud is to pause when being rushed and verify the legitimacy of both the person making contact and their claims. To reduce the odds of your voice being cloned, experts suggest exercising caution when speaking on the phone with strangers. If someone unfamiliar contacts you, hang up the phone, get a number for the purported company, government agency or family member from a trusted source (such as a company’s official website) and use that to call back and verify.
Be leery of anyone asking for nontraditional payment forms, and when logic may be clouded by romantic feelings, confide in someone you trust for an objective opinion.
If you believe you or someone else is a victim of fraud, contact the U.S. Department of Justice Office for Victims of Crime’s National Elder Fraud Hotline website or call 1-833-FRAUD11.
Source: StatePoint Media