Barry H. is a 76-year-old retired lawyer who thought he was helping the federal government with a criminal investigation.
Turns out hackers were stealing hundreds of thousands of dollars from his retirement accounts.
For months, Barry was withdrawing money from his retirement accounts thinking he was keeping the money safe.
“They kept telling me, ‘This is a big case and we are going to stop a whole ring of people,’” Barry said.
“It was like a rabbit hole. I was going down the hole with them.”
In the end, Barry lost over $740,000 from his retirement savings.
It started when Barry was unable to log into his 401(k) account.
He tried for days to log in, but he finally received a message to call the company’s fraud department.
When he called, Barry was connected with a man named Charles who was a fraud investigator.
Charles told Barry that someone was trying to access his accounts and that his accounts at other banks were also at risk.
The investigator then put Barry in touch with an employee at the other bank who could help him protect his accounts.
Barry was told that someone had been using his accounts to buy things in China – something Barry hadn’t ever done.
The investigator told Barry that financial institutions work with the IRS to stop fraud cases like his.
Then the man asked Barry if he would be willing to help.
That’s when a third man joined the conversation and identified himself as an IRS agent with his badge number.
He said all of Barry’s accounts were at risk but that the federal government could help him keep his money safe.
He said that if Barry was willing to work with the government, he could help prevent fraud.
“Let’s do it,” Barry said he told them. “I then gave them access to my computer, and they started me in a series of withdrawals from my bank’s accounts.”
Barry ended up withdrawing his retirement money and moving it to what he believed was secure accounts.
The three men who were “helping” Barry told him not to tell anyone that he was working with the federal government.
Eventually, Barry’s bank noticed the suspicious activity.
The bank tried to address it with him, but Barry said he was moving money around for his kids.
Soon, Barry was contacted by a detective in New Jersey who found his name on a receipt in a car.
“I’m pretty sure you’re the victim of a scam,” he recalled her saying. “I almost had a letdown, or a sense of relief,” he said. “I felt good and bad at the same time. It is hard to explain.”
Barry then met with FBI agents who told him that he was the victim of a scam.
Today, internet crimes targeting senior adults are drastically increasing.
In 2023 alone, Americans over the age of 60 lost over a billion dollars to online scams.
And senior adults are being targeted more often for cyber-crimes because of their retirement accounts that thieves want to get their hands on.
So, here are a few ways criminals are targeting seniors to steal their retirement savings.
Emotions:
Thieves focus on targeting the emotions of seniors, often using triggers such as “you won” something.
For instance, they might say you won a lottery or some other contest for money that can be added to your retirement accounts.
Another emotional trigger is “you owe.”
This creates fear for many seniors who might already be on a tight budget.
Adding another expense can create panic and the desire to want to pay the debt off right away to avoid any troubles.
So, if you receive any sort of emotional news, whether good or bad, take the time to talk to someone about it.
Reach out to a family member or friend who can talk you through the emotions to make sure you aren’t making a rash decision.
Charity:
Criminals take advantage of the giving nature of seniors.
Senior adults typically get calls, emails, and messages on social media asking if they want to donate to charity.
Before donating money to any charity, reach out to a financial adviser or family member to verify that the charity is legitimate.
Do research on the charity and consider looking up their phone number online and calling to verify that the legitimate charity is receiving your donation.
And be very wary of new charities that are asking for donations.
Investment opportunities:
Since many senior adults are on a budget criminals will pose as financial advisers promoting investment opportunities that claim to offer high returns.
The desire for financial security will lead folks to take risks.
If you are on a tight budget, it can be enticing to take a risk that promises big returns to secure the future.
While any type of investment comes with risks, if a “financial adviser” makes promises that seem too good to be true… it probably is.
Before opening your retirement funds to a stranger, consider speaking with a family member or trusted friend.
They can help advise you on financial decisions that could lead to a big headache like the one Barry experienced.
And to make sure your private information is secure from any of these scumbags looking to fleece you online, you need a robust and proven system.
