CONTACT
Barb Tyler, Office of Communications (402) 471-3486 Barb.tyler@nebraska.gov
Coronavirus Adds New Twist
Billions of dollars are estimated to be lost by senior adults each year to scammers, according to the National Council on Aging. Now, with the confusion and fear over the new coronavirus, it didn't take scammers long to begin to capitalize. People 65 and older often are targeted because they're more likely to own their home, have retirement savings and/or have excellent credit. They should be especially vigilant in order to keep the 'Grinch's' from spoiling the upcoming holidays. Federal, state and local officials across the country have alerted consumers, particularly older people, to be aware of several fraud schemes tied to the virus.
Phone or social media-based scams often may target seniors; the caller may claim to be a medical organization saying that COVID-19 vaccine is ready and may ask for an over-the-phone payment. The Federal Trade Commission (FTC) and Food and Drug Administration (FDA) have issued warnings against at least seven companies that the agencies say have been misbranding products as treatments or preventives against coronavirus. To date, no vaccine has been developed to prevent COVID-19.
A tactic similar to the vaccine scam has some fraudsters calling or emailing, posing as professional cleaners or similar service providers, offering to sanitize homes or businesses. While there are businesses that specialize in this service, they are not typically engaged in randomly calling potential customers out of the blue. Reputable businesses don't engage in hard sells or pressure tactics, particularly if they claim to want to help during this difficult time.
Likewise, the IRS cautions elderly taxpayers about telephone scams where the caller threatens to arrest the victim over the holidays for unpaid taxes. The caller usually demands immediate payment with a credit card or a prepaid debit card. The IRS said it does not call taxpayers without first sending an official notice through the mail. Also, the agency will not demand immediate payment without allowing for questions or appeal of the amount owed. Nor will the IRS threaten to send police or other law enforcement to arrest you for non-payment.
Charity scams are common regardless of what's happening in the news, but fraudsters follow the headlines, and coronavirus is a prime way for them to claim they're gathering donations for families that have been affected by the virus. Research any potential charity, and never give donations through cash, gift cards or by wiring money. Independently verify the information with the Better Business Bureau or with CharityWatch.org that suggest it is best to direct your donations to one or two charities rather than send smaller donations to a long list. Even the best charities have overhead costs related to obtaining and processing your donation. By making a larger gift to one financially efficient charity, instead of sending $20 to 10 different charities, a smaller portion of your donation will be used to cover overhead costs.
The coronavirus crisis is rapidly evolving, and many seniors are eager to make sure they have the most up-to-date information. One email scam uses the logo of the World Health Organization (WHO) to lure users into clicking on a button that unleashes malware. Another scam uses a likeness of the popular Johns Hopkins University coronavirus map to install spyware that can steal passwords, credit card numbers and other data stored within the web browser.
The first line of defense is your computer's firewall which can detect and block many known versions of malware. Updating and layering your computer's security systems will help protect you from such invasions.
Some con artists aren't as high tech. One common deception is the “grandparent scam" in which an imposter calls a senior citizen with a fictitious story about a relative in trouble who desperately needs money to fix a car or get out of jail in order to come home for the holidays. The Consumer Financial Protection Bureau suggests before offering help to someone who claims to be a relative such as a grandchild or friend, be sure to contact other family members to verify the emergency or urgent request is genuine. The Bureau also warns anyone not to provide personal financial information to anyone you don't know or aren't positive of who they actually are.
Last year the FTC noted older consumers are becoming more likely to report financial exploitation than their younger counterparts. It's okay to be generous during the holidays if you're also careful. By staying vigilant, you can better avoid becoming a fraud victim.
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