AARP: 4 things to know about scams

The Problem with Gift Cards

It’s not always risk-free with America’s favorite gift.

There are two types of gift card scams. In the first, a criminal convinces a consumer to pay a fake financial obligation buy purchasing gift cards and sharing the numbers off the back of the cards. In the second, scammers have already accessed the cards while on the store racks, leading a consumer to purchase or receive a card with zero funds. Shockingly, the research finds that 73 million Americans have experienced one of these forms of gift card fraud.

In other words, one third of U.S. adults say they have been targeted by scams seeking payment by gift card, according to a report by the AARP Fraud Watch Network. And nearly a quarter of consumers have given or received gift cards that had no funds on them.

According to the Federal Trade Commission, consumer reported scams led to losses of $233 million in 2021 to scams involving gift cards as the form of payment. Remember, gift cards are for gifts – not payment. If anyone you don’t know asks you to pay them with a pre-paid card, it is a scam.

Bad News – But Some Good News – on ID Fraud Trends

Last year, 42 million consumers suffered a staggering $52 billion in losses from identity fraud. Just when you think there can’t possibly be a silver lining – we found one. Much of this activity is happening via “traditional ID fraud” – the kind that happens in a way the consumer may never know, like a data breach. The other form of identity fraud happens as part of a scam (when a criminal directly deceives someone into giving sensitive information. Victims and losses dropped significantly from last year, with 12 million fewer victims (at 27 million total) and $15 billion less in losses (for a total of $28 billion). While the numbers are still outrageous, it suggests that consumers have adopted stronger protections that have put a big dent in the success of identity fraud scams.

The best offense is a good defense: avoid clicking on links in text messages or emails, use unique passwords for each website you do business with; enable two-factor authentication, which requires a password and a separate code to access the website; and avoid scanning unknown QR codes – it may take you to a malware-infested web addresses.

We’re All Targets

If there is one thing everyone should understand, it’s that “scammers” are career criminals skilled at the art of manipulation and no one is immune. These crooks target people of any age; in fact, 41% of those who reported a fraud loss to the Federal Trade Commission last year were under the age of 30. So, what can a person do if they find out they’ve been victimized?

One resource is the AARP Fraud Watch Network Helpline. Every weekday, trained AARP volunteer fraud fighters are helping victims understand what happened, report the crime and start to put their lives back together. If you or someone you know has been the victim of a scam or fraud, call the AARP Fraud Watch Network Helpline at 1-877-908-3360 for support.

When the Caregiver is a Crook

There’s nothing more important than knowing that your loved one is being properly cared for. Unfortunately, some of those tasked with providing this care take advantage of the opportunity to line their own pockets.

Here are three things you can do to safeguard your loved one from financial exploitation.

Regularly check in with both the caregiver and the care recipient to ensure the quality of care. Use technology to be present even when you physically can’t be. Keep an inventory of valuables and have a system for monitoring financial transactions.

If you suspect caregiver fraud or theft, contact the police and your local Adult Protective Services agency. Or contact the U.S. Department of Justice’s elder fraud hotline at 833-372-8311.

Be a fraud fighter! If you can spot a scam, you can stop a scam.

Visit the AARP Fraud Watch Network at http://www.aarp.org/fraudwatchnetwork or call the AARP Fraud Watch Helpline at 1-877-908-3360.