The IRS created a list of top scams this tax season. Identity theft, phone scams, email phishing scams, tax preparer fraud, inflated refund claims, and fake charities are among the most popular scams. Some people are more vulnerable to fraud than others.
Would you fall for this scam? Someone calls from your county Sheriff’s office and states that you failed to appear for jury duty. They ask for personal information like debit and credit card numbers, and threaten to arrest you if you don’t comply. This scam preys on your insecurity using an authority like a sheriff’s office or police department to bully you into providing protected information.
Or, someone posing as a utility worker either phones or comes to your door stating that your bill is past due, or the billing cycle has changed and payment is needed immediately or they will disconnect your service. Would you provide a prepaid credit card and the PIN number to ensure that your utilities remain intact?
Perhaps you receive an email stating that your friend is stranded in another country and needs money to get home. Would you wire money to your friend who is allegedly in trouble and needs your help?
So what makes someone more vulnerable to scams? An AARP study shows that certain behaviors and experiences make a difference. “Researchers compared the life experiences of victims and non-victims, based on a nationwide survey of 11,000 adults. They found that online fraud victims have experienced 53 percent more negative life events. They felt more isolated, were twice as likely to have lost a job, worried more about debt and were nearly twice as likely to have experienced a negative change in financial status in the last two years.”
Negative events can reduce your ability to defend yourself from scams. Your defenses are down when you are stressed. You are likely to be more focused on the upsetting event, and not thinking of how to avoid fraud. Or perhaps you are lonely, and have no one to ask for advice about potentially risky situations.
The elderly are especially vulnerable to scams. Older people are less able to identify shady characters than younger ones, according to a University of California study. As one ages, a portion of the brain called the anterior insula, can become less responsive. They sometimes miss common cues that indicate a person is not trustworthy. They may not process fear and suspicion the way a younger person does.
The AARP Fraud Watch offers information about how con artists work. They make a personal connection by asking a series of questions so they can find your emotional trigger. They purposefully scam people out of money by generating a heightened emotional state that makes it hard to think clearly and make rational decisions. The con artist will dangle a financial carrot in front of you in hopes of triggering an impulsive decision. They will try to paint a picture that what they have to offer is rare or available for a limited time. If something is scarce, it must be more valuable. The use of fear and intimidation is also a tactic to badger you into handing over money.
What can you do? Never make a purchase while listening to a sales pitch. Give yourself time to engage your rational mind.
There are a number of places you can turn to if you have been a victim of fraud. The AARP Fraud Watch Network at aarp.org/fraudwatchnetwork; Fraud Fighter Call Center at 877-908-3360; The National Association of Attorneys General at naag.org.
Dr. Gail Gabbert 