Help Your Parents Avoid These New Financial Scams - Part 2
Protecting Your Parents from Modern Scams: Part 2
In the first part of this series, we discussed two prevalent scams targeting older adults: the grandparent scam and cryptocurrency pickpocketing. This week, we’ll look at two more scams you and your parents need to be aware of, along with tips for staying protected.
Let's dive in.
3. Personalized Phishing Emails
Imagine opening your inbox to an urgent email from a seemingly legitimate source, like your bank, a popular online retailer, or a social media platform. The message claims there has been suspicious activity on your account and urges you to click a link or provide sensitive information to verify your identity. This is a classic phishing email—an attempt to deceive you into revealing personal data.
Phishing has existed since the advent of email, but scammers have become more sophisticated. Even if you or your parents are aware of phishing schemes, new tactics and technology make it harder than ever to detect these fraudulent emails.
Same Scammers, New Tricks
Phishers often impersonate trusted entities such as banks, governments, or major retailers. Recently, they’ve been sending more personalized emails, tricking recipients into thinking the message is from someone they know. These emails address the victim by name and may appear to come from a friend, co-worker, or supervisor, complete with a legitimate-looking email domain, signature, or logo.
Typically, the email claims there is a time-sensitive matter, such as a gift that needs to be purchased urgently. For instance:
“Hi Jim, this is Mr. Boss. I’m in meetings all day but need to send a gift to our new client immediately. Please purchase a $200 gift card on Amazon and send it to this email address. I will then forward it to our client.”
Phishers may also pose as banks or financial assistance programs, especially in times of crisis. You might see something like this:
“Hi Aaron, it’s Gav with Hardship Relief Program. We tried reaching you at your home and did not hear back. You’re pre-approved for our Hardship Program. Please call between 8 AM and 10 AM EST to go over the details. My number is 555-886-3424.”
Identifying Scams: It’s All in the Details
Before responding to any email requesting sensitive information or action, consider whether the request seems legitimate. Did you actually open an account or fill out an application? Is it normal for your boss to email you about such requests?
Scrutinize the Sender's Email Address: Hover your cursor over the email address to reveal its true origin.
Avoid Clicking Suspicious Links: Never share personal information via email, regardless of how professional the email appears.
Verify Information: Check for typos and verify the company name and phone number by searching online. When in doubt, contact the company directly through official channels.
4. The Online Overpayment Scam
Online buying and selling platforms like Etsy, Facebook Marketplace, Poshmark, and Craigslist are prime targets for scammers who prey on the goodwill of others.
In the overpayment scam, the fraudster contacts a seller, expressing interest in an item and offering to pay an inflated price. The scammer then “accidentally” overpays and requests a refund for the excess amount, acting panicked and upset.
However, the overpayment is fake—a fraudulent check or forged payment confirmation. When you refund the overpaid amount, you’re giving away your legitimate money, and by the time you realize the scam, the scammer has vanished.
How to Protect Against This Scam:
Use Traceable Payment Methods: Always require online buyers to pay through traceable means like PayPal, Cash App, or Venmo.
Avoid Non-Refundable Transfers: Do not send or receive money from strangers through non-refundable services like Zelle.
Verify Funds: Never accept more money than the purchase price. Verify you actually received the funds by logging into your payment account and checking your balance, rather than relying on a potentially fake confirmation email.
Preserving Your Assets and Protecting Your Loved Ones
Keeping up with evolving financial scams can be challenging, but with the right knowledge and tools, you can protect yourself and your aging parents from financial and emotional harm.
Communication is key. Talk openly with your parents about these risks and encourage them to reach out to you or a trusted professional before making any financial decisions.
Stay tuned for more tips and insights in the next installment of our series, where we’ll explore additional financial scams and how to protect your loved ones from them.
This article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed decisions about life and death, for yourself and the people you love. That's why we offer a Legacy Planning Session, during which you will get financially organized and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
