- Maybe you think you're pretty savvy about scams.

You don't answer calls from unknown numbers or open emails you don't recognize.

You research before you buy and you never give your personal info to some rando on a dating app.

But what about your parents or your grandparents?

- The FBI reports that the average senior fraud victim lost over $33,000 to scammers in 2023.

The agency collected over a hundred thousand reports from adults over 60 who are collectively conned out of over $3.4 billion and found that financial scams are on the rise in general with reports up 11% from the year before.

But the scariest part, they might be using you to pull it off.

- Here's how the scam plays out.

A senior citizen gets a phone call from an unknown number, a panicked voice on the other end of the line says, "Grandma, I'm in trouble and I need your help."

This supposed grandchild says they are in jail or they've been in a horrible car accident and need their grandparent to wire money right away and bail them out of a bad situation.

- [Julia] More sophisticated scammers may have looked up details about their target's family members' names and locations online, or even used generative AI tools to mimic a loved one's voice.

- But often all these imposters need is to play on a victim's sense of fear.

(upbeat music) - If we wanna keep grandma from getting scammed, first, we have to know what we're looking for.

Imposter schemes can take many forms.

In addition to loved ones, scammers may also pretend to be a government agent, a customer service representative, or an employee of a victim's bank or credit card company.

- These scams can affect people at any level of income, education, or financial literacy.

In 2023, a financial columnist for "The Cut" infamously lost $50,000 to scammers posing as FTC employees.

They used the names of real agents, spoofed phone calls to appear like they were coming from a real government number, and importantly told her that telling anyone else what was going on could put them at legal and financial risk.

- But fear isn't the only emotion that can be used against you.

Some scammers will start a dialogue with supposed good news that could look like a text about a job offer.

The scammer asks for banking details in order to send payment, but uses that information to withdraw money instead.

Or they'll offer to help someone invest money in the stock market or in cryptocurrency, but ghost the victim after draining the investment account.

- Scammers will even spend months developing what targets believe are real romantic relationships.

Once their smitten, suddenly the fake romantic partner asks for money to handle an emergency or even go visit the victim.

You can guess what happens next.

- So what makes these scams so effective?

Whether they're impersonating a loved one or the IRS, it's all about stirring up an immediate emotional reaction.

- [Philip] Amid these big emotions like fear, hope, and love, people don't always make their most careful decisions, and that's exactly what scammers are counting on.

- If you wanna protect your parents and grandparents from this kind of exploitation, the best strategy is not to try to explain the intricate inner workings of each and every scam, but give them a simple three step process to follow whenever they're contacted with an unusual request.

- First, slow down.

Scammers often create a sense of urgency, encouraging you to move quickly so that by the time something doesn't seem quite right, your money is already gone.

So pause before you answer a call or text from a number you don't recognize.

You can always call someone back or respond to a message after you've had a second to get your bearings.

- Second, verify.

If someone claims to be a customer service representative or someone from your bank, for example, hang up and call the company directly.

Same goes for family members.

You can also set up code words with your family in advance that you can use in the event of an actual emergency.

Sophisticated scammers will find publicly available information about you online, like your address or your family member's names, and spout them back at you in order to seem authentic.

So try to pick a code word or phrase that isn't easily Googleable or that you haven't posted about on social media.

And if an online friend or potential romantic partner starts asking for money, try doing a reverse image search of their photos to make sure they aren't using stock photos or stolen images from someone else's social media accounts.

- And finally, most importantly, talk to someone.

Let your parents and grandparents know that you are available to help them sort through any confusing situation.

Whether they're afraid they're in trouble or head over heels, checking in with a friend or family member who isn't in such an emotionally heightened state can help them evaluate the situation more objectively.

And if someone tells them that they shouldn't speak to anybody about what's going on, that's a red flag that they definitely should.

- If you or someone you love does fall victim to a scam, don't let shame or embarrassment stop you from talking about your experiences because you may be able to help other people avoid the same scam in the future.

In the '90s when email was going mainstream, a scam or an email sender claiming to be a Nigerian prince was so common it entered the pop culture lexicon as synonymous with scamming itself, which made it so much easier for targets to spot.

- Maybe bogus crypto investments will be the next to go.

While that tactic is still on the rise, it's been widely publicized in the media, likely helping some people recognize it before they can get sucked in.

You can report a scam to the FTC and the FBI's Internet Crime Complaint Center so they can track and report these trends.

- Remember, anyone can get scammed.

Despite the stereotype of vulnerable elders, Gen Z was actually the most likely to lose money to scams in the past year according to a Bankrate survey.

- [Philip] It may be because fraudsters use techie tools like generative AI or cryptocurrency wallets to pull off their heists.

But the real reason scammers are successful is because they appeal to what's most human about us, our desires for security, connection and love.

- But every time we use those same skills, every time we break through isolation and look out for each other, it gets easier to keep each other safe.

- [Together] And that's our two cents.