SCAMS: Elder Fraud Has Reached Epidemic Proportions

Naum Lantsman runs a business selling equipment and supplies to restaurants in the Los Angeles area. But when COVID-19 hit, and restaurants closed down, he lost a lot of clients. One day, Lantsman saw a post about Spirebit, a so-called “international financial broker” based in London that helps people invest in cryptocurrencies.

Wanting to boost his retirement savings, which were also hit by the pandemic, Lantsman, 74, told NPR that he decided to invest with Spirebit. At the time, Lantsman didn’t know that Spirebit’s trading platform, which showed how his money was growing, was fake. Lantsman discovered this after trying to withdraw money from his account and was told to send SpireBit two percent of the amount he requested as a “security measure.” Unfortunately, at that point, his life savings of more than $340,000 was already gone.

“Obviously there’s like a shame component to this and coming to reality and grips with ‘Hey, I lost 100% of my family’s liquidity,'” Lantsman’s daughter, Lina O’Connor told NPR.

Elder fraud continues to rise and shows no signs of stopping. The FBI’s Internet Crime Complaint Center reported that Americans over 60 lost $3.4 billion in 2023, a nearly 11 percent increase in reported losses from 2022.

Some of those losses involved imposter scams, which the Federal Trade Commission (FTC) says is the top fraud in the United States. In 2023, a total of $2.6 billion was lost to this type of scam, the FTC reported. What’s more, nearly 200,000 people have been targeted so far this year.

According to the FBI, older adults are often targeted because they tend to be trusting and polite, have financial savings, own a home, and have good credit—all of which makes them attractive to scammers. The FBI suggests that scammers target seniors because they are not likely to report being scammed because they either, don’t know how, or they may be too ashamed to say that they were scammed.

Dr. Laurie Archbald-Pannone, an associate professor of Medicine and Geriatrics at the University of Virginia, said she believes elder fraud has reached an “epidemic scale.” In an article for The Conversation, Dr. Archbald-Pannone says her patients often tell her about being scammed.

“The consequences can be worse than just losing money,” Dr. Archbald-Pannone wrote. “The experience is traumatic for many, with some victims feeling deep shame and self-doubt in the aftermath. This can interfere with their relationships, erode their trust in others, and harm their mental and physical health.”

Imposters Use Well-Known Companies To Trick Consumers

Scammers have many ways of perpetrating fraud, and one way is using a brand-name company that consumers trust. Analyzing 2023 data based on complaints filed with Consumer Sentinel Network, the FTC discovered that fraudsters stole millions of dollars after impersonating representatives from Amazon, PayPal, and other popular companies.

Topping the FTC’s list of the most complaints reported were:

• Microsoft.

• Publishers Clearing House. 7,000 complaints were filed by consumers who reported losing $49 million. These scams often involved con artists telling winners of the so-called sweepstakes to pay fees or taxes upfront before they could receive their prize of a brand new sports car or big sweepstakes check.

• Best Buy’s Geek Squad. The network received 52,000 complaints about impersonation scams that caused consumers to lose $15 million. The fraud typically involved fraudsters sending emails reminding people to pay several hundred dollars to renew a service that they never had in the first place.

Fraudsters Target Home Titles

Home title fraud occurs when con artists steal a homeowner’s identity and refinances or sells the homeowner’s property and take the money. This type of fraud is not new, but what was new was a high-profile scam involving Graceland, the home of Elvis Presley, the King of Rock’ n’ Roll.

Tennessee’s most popular tourist attraction came close to being auctioned off in May when a scammer posed as a lender to get title to the iconic mansion. A company called Naussany Investments and Private Lending said it had a claim to the mansion. Naussany alleged that Lisa Marie Presley, the daughter of Elvis and Priscilla Presley, had used Graceland to secure a $3.8 million loan from Naussany, which she failed to pay back before she died in 2023.

Lisa Marie’s daughter, Riley Keough, the current owner of Graceland, filed a lawsuit alleging fraud and claiming Naussany had no right to the property. A Tennessee judge ultimately stopped the estate from going to auction.

In covering the story, CNN sent an email to the email address associated with Naussany. Surprisingly, the news outlet received a reply from a self-proclaimed scam artist who wrote: “I didn’t win this one. I’ve stole (sic) many identities and received monies, we don’t win all.”

The fraudster also sent an email to the New York Times stating that “they are based in Nigeria” and target homes owned by deceased and elderly homeowners in states such as Florida and California. The article also said that fraudsters use sensitive documents, like birth certificates, to facilitate their schemes.

Home title fraud can take many forms, and the internet and new technology make it easier for scammers to perpetrate, David Fleck, a real estate fraud attorney in Los Angeles, told CNN.

Protection Tips For Older Adults

One way older adults can avoid falling prey to con artists is to learn how to identify scams ahead of time. The following are a few tips that the FBI and other professionals offer:

• Never give personal information, such as your bank account or other financial information, to unverified people or businesses.

• Don’t give anyone you don’t know remote access to “fix your computer” or other electronic devices.

• Resist pressure to act quickly. Scammers often create a false sense of urgency.

• Use your credit card rather than a debit card. You’ll only be liable for $50 if someone makes a fraudulent charge on your credit card.

• Call the number on the back of your credit card rather than search for the number online since criminals place fake customer service phone numbers online, Amy Nofziger, AARP’s director of fraud victim support, told NPR.

If you are scammed, do not be ashamed to report it, and give yourself grace, Nofziger said. “You were a victim of crime. End of story. You need help, kindness, empathy, and guidance.”

If you think you have fallen for a scam, contact your local law enforcement or your FBI field office. If the crime was committed over the Internet, file a complaint with the Internet Crime Complaint Center.

Source Links:

https://www.npr.org/2023/06/25/1180256165/crypto-scam-senior-victims-spirebit
https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3ElderFraudReport.pdf
https://www.npr.org/2023/06/19/1182464826/scammer-phone-calls-imposter-fraud
https://theconversation.com/elder-fraud-has-reached-epidemic-proportions-a-geriatrician-explains-what-older-americans-need-to-know-230754
https://finance.yahoo.com/news/scammers-love-impersonating-5-major-133653431.html
https://www.cnn.com/2024/05/29/investing/graceland-scam/index.html?cid=external-feeds_iluminar_yahoo
https://finance.yahoo.com/news/scammers-tried-steal-graceland-sure-080015235.html
https://www.npr.org/2023/11/07/1196978201/protect-yourself-from-scams

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