You know it’s bad when Grandma cancels bingo and Grandpa’s polishing his shoes for a “meeting with the FTC.” Spoiler alert: there was no FTC—just fraudsters finessing their way into his wallet.
In this publication, we're uncovering a cruel, fast-growing scam targeting seniors—and it nearly worked on a well-informed family. Here's what happened and how to make sure it doesn’t happen to your loved ones.
They Called Claiming to Be From the Bank and the FTC. $40,000 Later…
Scammers impersonated federal agents and bank officials to convince an 80-year-old he owed tens of thousands in fraudulent charges. They demanded prepaid debit cards and strict secrecy, nearly conning him out of his savings—until his wife made one crucial call.
How It Works:
- It starts with a text. A fake alert claims there’s a suspicious charge—usually a modest amount—to something like Apple Pay.
- A fake number is given to call. That call connects you to a scammer posing as a bank rep.
- They claim you owe thousands. Even though you're only liable for $50 by law, they insist you must pay immediately.
- They escalate with "FTC involvement." The call is transferred to a phony “Federal Trade Commission agent” to add pressure.
- They demand prepaid cards or gift cards. The final step—before your money vanishes for good.
Who’s Targeted?
- Seniors aged 60+
- Recently hospitalized or cognitively vulnerable individuals
- Isolated or non-tech-savvy adults
- Anyone with a strong sense of financial responsibility who might panic over fraud
Real-Life Example:
An elderly man, just out of the hospital and heavily medicated, received a fake fraud text. It led him to believe he owed $40,000. He and his wife were already dressed and ready to go withdraw the funds—until she broke the scammers’ rule and called her son. That call likely saved them from total financial loss.
“I told him this was absolutely a scam—even a well-known and documented one—and that it was very easy to fall prey to it.”
Why You Should Care:
- Losses are massive: Elder scams account for over $3 billion annually, according to the FBI.
- They prey on your family: Your parents or grandparents are especially vulnerable due to isolation, trust in authority, and declining cognitive sharpness.
- You won’t get the money back: Once prepaid cards or gift cards are handed over, the funds are usually gone for good and protections don’t apply.
How to Protect Yourself:
- Never call back numbers in texts or emails. Use the official number on the back of your card.
- Know the red flags: No bank, FTC agent, or IRS rep will ask for prepaid cards or secrecy.
- Talk it out: Encourage open conversation about any “strange” financial messages or calls.
- Hang up if pressured. Fear, urgency, and secrecy are key weapons in a scammer’s toolkit.
- Keep emergency contacts informed. Share suspicious messages with family before taking action.
Quick Tips:
- Quick Tip #1: Did you know? The FTC never calls you to settle debts or demand money, ever.
- Quick Tip #2: Pro Tip: Set up scam alerts and fraud notifications on elderly relatives' phones to catch red flags early.
Stay safe, stay informed.
And maybe screen those texts a little closer next time.
Keyword Definitions:
- FTC (Federal Trade Commission): A U.S. government agency that protects consumers and promotes fair business practices.
- Prepaid Debit Cards: Payment cards loaded with money in advance, often used by scammers because they're hard to trace.
- Elder Scam: A fraud tactic that specifically targets older adults, exploiting cognitive decline or isolation.
- Gift Card Scam: A scam where victims are told to buy gift cards and share the numbers, making the money unrecoverable.
- Phishing Text: A fake SMS message designed to trick you into clicking a link or calling a scammer.
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