DOS: Consumer Protection warns elders of financial scams

ALBANY, N.Y. (NEWS10)-- The New York Department of State's Consumer Protections division is highlighting ways older adults can spot financial scams as the FBI's Internet Crime Complaint Center finds investment scams to be the top crime type in 2023. The information about financial scams comes a day before National Senior Citizens Day, Wednesday, Aug. 21.

According to the state Consumer Protections division, the four primary financial scams affecting older adults are investment, reverse mortgage, money moving, and government imposter scams. Investment scams increased by 38% between 2022 and 2023, amounting to $4.57 billion in 2023.

New Yorkers looking for more information on how to spot and avoid scams can visit the U.S. Consumer Financial Protection Bureau or the U.S. Federal Trade Commission website. Secretary of State Walter T. Mosley said it can be devastating for older adults who lose money, benefits, or retirement funds.

"On National Senior Citizens Day, help protect yourself and your loved ones by staying up to date on how to spot and avoid trending scams that target older adults," Mosley said. "A few simple steps and precautions can help consumers of all ages protect their personal information, money and livelihood."

Scam avoidance suggestions

• Investment scams: Older adults can spot fraud in investment scams if the scammer guarantees claims or profits with little to no effort or risk. The scammer may offer free training or share success stories to pressure victims into paying for the investment. The scams can be avoided by researching the offer and exercising caution before committing immediately.
• Reverse mortgage scams: Reverse mortgage scammers will pose as lenders, often reaching out unexpectedly and making victims sign paperwork without understanding how the loan works. A suggested way to avoid reverse mortgage scams is by not rushing commitment.
• Money-moving scams: Money-moving scammers alert victims that they have suspicious banking activities that must be addressed immediately by creating a new account. Victims should hang up the phone promptly and never share verification codes with scammers. Best practices to avoid money-moving scams are to monitor bank accounts closely and use the phone number for their financial institutions on a bank statement or through the bank's website.
• Government imposter scams: Government imposter scammers often pose as government agencies with a fake caller ID or email, using urgency and fear of victims. The best way to spot a government imposter scam is to know that the government contacts victims through the mail first. Anyone who suspects a government imposter scam can verify its legitimacy by calling or emailing the government agency.