Deep Dive
How much money was stolen from Americans in fraud schemes last year?
$10 billion was taken from Americans in fraud schemes last year, according to the Federal Trade Commission.
What are some common starting points for imposter scams?
Many imposter scams begin with a phone call or text message containing a made-up claim.
Why do victims of scams often feel ashamed?
Victims often feel ashamed because they were duped by criminals and handed over significant amounts of money.
How did the scammer manipulate Judith into giving away her life savings?
The scammer pretended to be from the FBI, using a real agent's resume and manipulating Judith into believing she was helping with a criminal case. Over three months, they convinced her to move her money to different banks and eventually hand over $600,000 in cash.
What is 'spoofing' in the context of scams?
Spoofing is when scammers make it appear on the victim's phone that the call is coming from a legitimate source, such as the FBI or local police department.
How did Judith eventually realize she was scammed?
Judith realized she was scammed when the Maryland Securities Office contacted her, and she thought they were working with the FBI. They informed her it was a scam, and she noticed the email address used was 'USA.com' instead of 'FBI.gov'.
What percentage of Judith's stolen money was recovered?
Only about $50,000 of Judith's $600,000 was recovered, as most of it was bundled in cash and sent to other scam victims.
Why do fraud victims often end up paying taxes on stolen money?
Fraud victims often pay taxes on stolen money because they withdraw funds from tax-advantaged accounts like 401(k)s, which generates a tax bill. Before 2017, victims could write off theft losses, but that deduction was removed, leaving many with tax bills on money they no longer have.
How has the nature of scamming evolved over time?
Scamming has become more sophisticated due to data breaches, advanced technology, and the ability to spoof phone numbers. Scammers now have access to detailed personal information, making their schemes more convincing.
What role does emotional manipulation play in scams?
Emotional manipulation is key in scams because scammers exploit fear and stress, often using threats of arrest or other dire consequences. This triggers a fight-or-flight response, making victims less likely to question the legitimacy of the call.
What is the 'ether' in the context of scams?
The 'ether' refers to the psychological state victims enter where they are isolated and manipulated by scammers, making it difficult for them to think clearly or seek help.
How can families protect elderly relatives from scams?
Families can protect elderly relatives by designating a go-to person for financial questions, having regular communication, and placing reminders near the phone about common scam tactics. It's also helpful to establish a code phrase to verify calls.
Why are younger adults also targeted in scams?
Younger adults are targeted because scammers know they are more likely to engage with technology and may be less cautious with personal information online. Two in five adults in their 20s have reported losing money to scams.
What advice does Michelle Singletary give for verifying financial communications?
Michelle advises not responding to emails, texts, or calls about financial matters. Instead, independently contact the institution directly to verify the communication. This prevents acting impulsively under pressure.
- $10 billion lost to fraud schemes in the US (FTC data)
- Imposter scams often start with phone calls or texts
- Victims often feel ashamed and blame themselves
- Sophisticated scams use data leaks and AI to seem legitimate
- Victims are not responsible for being scammed
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