Fraud Prevention

Financial scams are on the rise, targeting unsuspecting individuals with deceptive schemes that can result in devastating losses. Knowing the warning signs can help protect you and your loved ones from falling victim to these fraudulent activities.

Red Flags of a Financial Scam

1. Unexpected Requests for Personal Information – Legitimate financial institutions will never ask for sensitive details like Social Security numbers, passwords, or banking information through unsolicited phone calls, emails, or text messages.
2. Too Good to Be True Offers – If an investment opportunity promises guaranteed high returns with little to no risk, it’s likely a scam. Always verify the legitimacy of such claims before committing any money.
3. Urgent or Threatening Language – Scammers often create a sense of urgency, pressuring victims to act quickly to avoid penalties, legal action, or financial losses. Take your time to verify any claim before responding.
4. Unfamiliar Payment Methods – Be wary of requests to send money through wire transfers, gift cards, or cryptocurrency, as these transactions are difficult to trace and nearly impossible to recover once sent.
5. Unsolicited Contact from ‘Government Agencies’ or ‘Banks’ – Scammers frequently impersonate trusted institutions, claiming to be from the IRS, Social Security Administration, or your bank. Always contact the organization directly through official channels to confirm legitimacy.
6. Winning a Contest You Never Entered – If you receive a call, email, or letter stating that you’ve won a lottery or sweepstakes you never signed up for, it’s likely a scam designed to collect your personal information or demand fees for ‘processing’ your winnings.

Warning Signs of IRS Fraud

Authorities urge taxpayers to be on high alert for red flags, including:

• Unsolicited Contact: The IRS primarily communicates through mail and will not call, text, or email unexpectedly.
• Threats of Arrest or Lawsuits: The agency does not use aggressive tactics to demand payment.
• Requests for Unusual Payment Methods: Scammers often ask for payment via gift cards, cryptocurrency, or wire transfers.
• Fake IRS Websites: Fraudulent emails may direct victims to websites designed to steal sensitive information.

What to Do If You Receive a Suspicious IRS Call or Message

1. Do Not Engage: Hang up immediately if you receive a threatening phone call.
2. Verify Directly with the IRS: Contact the IRS at 1-800-829-1040 to check the status of any tax issues.
3. Report the Scam: Notify the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission (FTC).
4. Protect Personal Information: Never share Social Security numbers, banking details, or other private information over the phone or online.

Preventing Future IRS Fraud Scams

• File Taxes Early: Reduce the risk of tax-related identity theft by filing before scammers can fraudulently claim a return in your name.
• Use Secure Payment Methods: Only make tax payments through official IRS channels.
• Enable Identity Protection PINs: The IRS offers Identity Protection PINs (IP PINs) to prevent fraudulent filings.
• Educate Yourself and Others: Share scam awareness tips with friends and family, especially seniors who are often targeted.

As IRS fraud scams become more prevalent, awareness and vigilance are crucial. If you suspect an IRS scam, trust your instincts, verify information through official channels, and report any fraudulent activity. Protecting your personal and financial information is the best defense against tax fraud and identity theft.

As tax season approaches, scammers posing as IRS agents are ramping up their efforts to steal personal and financial information from unsuspecting taxpayers. Authorities warn that IRS fraud scams have become increasingly sophisticated, with thousands of victims losing millions of dollars each year.

How the Scam Works

Fraudsters typically contact their targets through phone calls, emails, or text messages, claiming to be IRS officials. They often use high-pressure tactics, threatening legal action, arrest, or financial penalties if immediate payment is not made. Some even manipulate caller ID to make it appear as if they are calling from an official IRS number.

“Many scams are designed to create a sense of urgency,” said Jeff Hasenmyer, vice president of Bradford National Bank. “Scammers can only be successful if they get the victim to act before thinking. Recognizing their tactics is the first step in protecting yourself.”

Bradford National Bank is warning seniors and their families about a surge in “grandparent scams,” a deceptive scheme in which fraudsters pose as distressed family members to steal money. With thousands of reported cases annually, this scam preys on the emotions of elderly victims who are eager to help their loved ones in crisis.

According to the Federal Trade Commission (FTC), seniors over 60 are five times more likely to lose money to fraud than younger adults, with losses exceeding $3 billion in the past year alone. The rise of artificial intelligence has also fueled more sophisticated scams, including voice-cloning technology that mimics loved ones’ voices, making grandparent scams even harder to detect.

“Scammers are getting smarter, and they’re targeting people who may not question the legitimacy of a call or email,” says Linda Harper, a fraud prevention specialist at the National Council on Aging. “Education and awareness are our best defenses.”

Scammers typically call or text elderly individuals, pretending to be a grandchild or other relative in urgent trouble. They may claim to have been arrested, in a car accident, or stranded in a foreign country, pleading for immediate financial assistance.

“These scammers are skilled at inducing fear and urgency,” said Randy Alderman, security officer at Bradford National Bank. “Scammers play on emotions, pleading with victims to keep it a secret and making it seem like sending money is the only solution.”

Tactics Used by Scammers

• Impersonation: Scammers often research their victims on social media to learn personal details about family members.
• Urgency and Secrecy: The caller insists that the victim must act immediately and keep the situation a secret from other family members.
• Untraceable Payment Methods: Fraudsters commonly request payment through wire transfers, gift cards, or cryptocurrency, making it difficult to recover lost funds.

One recent victim, 79-year-old Harold Peterson from Florida, lost $7,500 after receiving a frantic phone call from someone claiming to be his grandson. “He sounded just like him,” Peterson said. “He said he was in jail and needed bail money immediately. I panicked and sent the money before realizing it was a scam.”

Law enforcement officials advise seniors to take the following precautions to avoid becoming victims:

• Verify the Caller’s Identity: Ask questions only a real family member would know, or call them back on a known number.
• Stay Calm and Think Critically: Scammers rely on panic to cloud judgment—pause before taking action.
• Never Send Money Immediately: Be wary of any request for urgent financial help, especially via gift cards or wire transfers.
• Consult Another Family Member: Check with relatives before sending money to confirm whether the alleged emergency is real.

Prevention Tips for Seniors

To avoid falling victim in the first place, seniors should adopt these proactive measures:

• Verify Identities: Always confirm a caller’s identity by asking questions only the real person would know, or call back using a trusted number.
• Protect Personal Information: Never share Social Security numbers, bank details, or passwords over the phone or email unless the source is verified.
• Be Skeptical: If an offer sounds too good to be true, it likely is. Hang up on unsolicited calls or delete suspicious emails.
• Use Technology Safely: Install antivirus software and avoid clicking unknown links or granting remote computer access.
• Stay Informed: Attend local fraud prevention workshops or discuss scams with family members.

Reporting the Scam

If you or someone you know has been targeted by a grandparent scam, report it immediately to:

• The Federal Trade Commission (FTC)
• The FBI’s Internet Crime Complaint Center (IC3)
• Local law enforcement agencies

As financial fraud targeting senior citizens continues to rise, experts are urging older adults and their families to remain vigilant against scams designed to steal their hard-earned money.

“With scammers using increasingly sophisticated tactics, knowing the warning signs and preventive measures is crucial to staying safe,” said Jeff Hasenmyer, vice president at Bradford National Bank.

How to Protect Against Scams

Experts recommend several key steps to help protect seniors from falling victim to these schemes:

• Verify Calls and Emails: If someone claims to be from a government agency or financial institution, hang up and contact the organization directly using an official phone number.
• Never Share Personal Information: Avoid providing Social Security numbers, bank details, or passwords to unknown individuals.
• Beware of Urgency and Pressure: Scammers often create a sense of urgency to force victims into making rushed decisions. Take time to verify any claims before acting.
• Use Strong Cybersecurity Practices: Enable two-factor authentication, use strong passwords, and never click on suspicious links in emails or messages.
• Monitor Financial Accounts: Set up bank alerts for unusual transactions and regularly review account statements.

If you or a loved one falls victim to a scam, taking immediate action can help mitigate financial losses and prevent further damage:

1. Stop All Communication: Cease contact with the scammer immediately. Do not send additional money or share more personal information, even if they threaten or plead.
2. Report the Incident: Contact local law enforcement and file a report with the FTC at ReportFraud.ftc.gov or by calling 1-877-FTC-HELP. For identity theft, report to IdentityTheft.gov.
3. Notify Financial Institutions: If money was sent or bank details were compromised, inform banks or credit card companies promptly to freeze accounts, dispute charges, and monitor for suspicious activity.
4. Alert Family or Trusted Contacts: Tell a family member or close friend for emotional support and assistance in navigating next steps. Scammers often rely on victims’ embarrassment to prevent reporting.
5. Monitor Credit and Accounts: Request a free credit report from AnnualCreditReport.com and consider placing a fraud alert or credit freeze with the major bureaus (Equifax, Experian, TransUnion).
6. Seek Professional Help: Consult a lawyer or a victim assistance program, such as the AARP Fraud Watch Network (1-877-908-3360), for guidance on recovering losses.

A growing number of elderly individuals are falling victim to sophisticated romance scams, losing millions of dollars to fraudsters who exploit their trust and loneliness. Law enforcement agencies and consumer protection groups are warning seniors to be vigilant as scammers employ increasingly deceptive tactics.