How to protect your parents against scams and frauds
Scams and fraud are on the rise, and older adults can be easy targets. Scammers are using new tricks and technology to take advantage of them. To help keep our parents safe, it's important to understand the common situations where fraud happens. Let's take a look at some examples of scams and fraud, and learn how to protect our parents from falling for them.
False investment scams
Seniors work hard to save money and secure their future, but this makes them vulnerable to scams that want to steal their savings. These scams span from Ponzi schemes to fraudulent real estate investment offers, alluring their victims by promising high returns without much risk. These so-called "advisors" use high-pressure sales tactics to make seniors act quickly without even allowing time for due diligence.
Precautions you can take
Help your parents and grandparents understand the common types of scams and the red flags associated with them. Tell them to research thoroughly before investing, and not to rush. Advise verifying the credentials of those behind the investment. Encourage them to carefully read all documents before signing anything. Remind them to trust their instincts—if something sounds too good to be true, it probably is.
Phishing scams
Scammers pretend to be trusted organizations, like banks, or the Income Tax Department, through calls or messages. They might claim you are in legal trouble to make you panic. Another trick is phishing emails or calls asking for sensitive info, especially about online accounts, and Aadhaar cards. They also send emails or messages containing unfamiliar links or attachments, which could introduce malware.
How to prevent
Teach them to be cautious of unexpected emails, messages, or calls asking for sensitive data. Instruct them not to click on links or download attachments from unfamiliar or suspicious sources. Show them how to hover their mouse over links to see the actual URL before clicking. Encourage enabling two-factor authentication for added security. Ensure their devices have updated security software and operating systems.
Customs scams
In this, scammers deliberately make friends with regular people. They build a connection and then cook up a story about sending gifts from another country or planning a visit from abroad. The catch is that they say the gifts are held up in customs and ask for money to resolve the issue. This plays on trust and compassion, tricking victims into giving them money.
How not to fall prey to this scam
Advise your parents to be cautious when befriending someone on social media, especially if they have never met in person. Encourage them to ask detailed questions about the "customs issue" and not to send money if things seem fishy. Scammers might use emotional stories to trick them, so remind them to be cautious. Adjust the privacy settings of their social media accounts.
Grandparent scam
The grandparent scam involves scammers pretending to be the grandchildren or children of older adults, typically over the phone, fabricating urgent situations to ask for immediate money. They use the emotional bond to get quick financial help without verification. With the emergence of Artificial Intelligence, voice cloning has become easier. This has enhanced scammers' ability to convincingly mimic familiar voices, amplifying the scam's impact.
How to prevent
Advise your parents and grandparents to ask specific questions that only the real grandchild would know, like personal details or shared memories. Encourage them not to quickly respond to urgent requests, and to take time to verify the situation. Make them aware of voice cloning technology and how scammers use it to sound real. Recommend they contact you to confirm the caller's claims.
Courier scam
Scammers contact victims, claiming that illegal parcels, supposedly drugs, are being sent in their name to foreign countries. They insist victims join a call on Skype or Zoom, impersonating narcotics officers, and pressure them to share Aadhaar, identification, and bank details. Victims are manipulated to transfer money under the guise of verification, after which scammers vanish, leaving victims without their funds.
How to prevent
Legitimate authorities would never ask for personal or financial information through phone or email. Tell your parents not to give in to pressure or urgency from such callers. Encourage them to check any claim independently by contacting the organization. Advise against participating in Skype or video calls with unfamiliar individuals. Make it clear they should never send money for verification or any reason.
