A Tech Support Scam That Targeted the Elderly
On October 4th, five people from Michigan and New Jersey were arrested and charged on accusations of wire fraud that targeted the elderly across ten states. They are accused of stealing at least $8 million from their victims in a scam involving gold bars. The scammers allegedly contacted their elderly victims through phone calls and e-mails, claiming that the victims’ savings and retirement accounts were compromised. The scammers had their victims transfer money to them, claiming the funds would keep the accounts secure. In some instances, the victims were instructed to purchase bars of gold and hand them off to couriers working for the scammers. These couriers worked with a handler that would take the gold bars and ship them off.
In early May, an 82-year-old woman from Saint Louis was targeted. She was contacted by the scammers, claiming to be from a computer software company. They told her that her financial accounts had been hacked and she would need to pay to keep her money and personal financial information safe. The scammers made her open new bank accounts and transfer all her money into them, as well as instructing her to wire money overseas. In addition, this woman was one of the victims that fell prey to the gold bar scam. The scammers had the woman purchase $250,000 worth of gold bars. The report states that one of the alleged scammers flew from Florida to Saint Louis to retrieve the gold bars personally. This scammer was one of the couriers, and they took an Uber directly to the victim’s home after meeting their handler. However, the courier found law enforcement waiting for them. The FBI had been tipped off about the fraud and successfully intervened. The courier attempted to warn their fellow conspirators over text, but in the end their handler and several others were apprehended and arrested.
If the accused are found guilty, they could be facing up to 30 years in prison, a $1 million fine or both prison time and the fine.
While this particular ring of scammers was arrested and prosecuted, one 2024 study from Nasdaq finds that an estimated 1 in 10 elderly Americans fall victim to some kind of financial scam. $77.7 billion of fraud reported around the globe had links to elderly victims. It is important for those of us with elderly family members to learn the signs of potential fraud and report it to the proper authorities. A study from Slicktext found that one of the most common methods of scamming are those that impersonate a bank over text. A bank will never text or call customers to verify personal or financial information. Always be wary of text messages asking you to verify or update financial information through links or phone numbers. Remaining vigilant online and being careful with your financial details is key to keeping yourself safe from fraud and scams.
https://www.justice.gov/usao-edmo/pr/five-arrested-accused-targeting-elderly-victims-tech-support-scam
https://verafin.com/2024/03/elder-fraud-prevalent-preventable/
https://www.prevail.bank/blog/post/banks-never-ask-that-your-text-may-be-a-scam-if-