The other day I received an e-mail from Roger asking me to give him a call. He lives in the Twin Cities and we crossed paths professionally over the years. Now age 76, he told me that he had lost several thousand dollars to a computer-based scam. He wanted to tell his story as a warning to others. "I fell for it hook, line and sinker," he said. "It's maddening."
There has been a proliferation of scams targeted at older Americans. For example, I routinely get calls from people claiming they are from the Social Security Administration telling me to call back immediately to deal with legal proceedings that have been launched against me by the government agency. The message is a fraud, of course.
Roger's story is convoluted, but the outline is simple enough. He had bought a new computer and he had trouble getting used to the latest Windows operating system. An e-mail told him that he was eligible for a $400 refund related to his computer purchase. He needed to give tech support remote access to his computer and to his bank account for direct deposit. Rod filled in the form and put in for $400. Suddenly, his computer screen showed $4,000 had been deposited. He now owed the "company" $3,600. (He later learned that the $4,000 came from his wife's account.)
Panicked, he tried to make good on the difference. The scamster suggested sending gift cards. He did. The scamster said that there were problems with the gift cards and to send money in a book through UPS. He did. Finally, Roger realized what was up and he got in touch with the police. The experience was financially painful, but the biggest toll was emotional. "I lost contact with reality," he said. "They put pressure on me, and I folded."
Roger wonders if he fell for the scam because he has lost some mental vigor. He recently took a cognitive status test and, compared with a similar procedure a decade ago, there had been some deterioration. He warns people to never give anyone access to your computer; don't buy gift cards for people who say you owe them money; and don't send money online or through the mail to strangers. Even with his financial background, he forgot those simple and sensible precautions.
You can learn more about strategies to safeguard finances by visiting the Department of Justice's Elder Justice Initiative. The federal government's Consumer Financial Protection Bureau's website also offers information on protecting older adults from fraud and the AARP Foundation has its ElderWatch webpage.
Chris Farrell is senior economics contributor for "Marketplace" and Minnesota Public Radio.
