David Anderson is principal of David Anderson & Associates, a Philadelphia forensic accounting firm that provides a full range of fraud investigation, forensic accountin,g and marital dissolution services in Philadelphia and the Delaware Valley.

Recently, the FBI announced that adults over the age of 60 reported the highest total losses by fraud of any age group.  There are several factors related to this, including:

• Older Americans tend to be more trusting
• They may be dealing with such issues as loneliness, health issues, and/or the loss of loved ones
• They tend to have savings, retirement accounts, or good credit.

Many of the scams perpetrated on seniors are updated versions of previously successful scams. The Association of Certified Fraud Examiners (ACFE) recently shared information about such scams.

These include:

• Impersonation Scams – These involve scammers who pretend to be from a bank, the Social Security Administration, the IRS, Medicare, or a utility company. The scams typically begin through e-mails or texts, although some may involve automated phone calls.  The scammer seeks to create fear or urgency to pressure their victims to send money or share personal information.  Another version of the impersonation scam involves claiming to be from a family member who is in trouble and needs immediate funds.  Scammers use spoofed phone numbers, fake e-mails and realistic looking websites to facilitate such scams.
  • The solution: Don’t respond to the e-mail, text or phone call.  Immediately contact your bank, utility or tax accountant (for IRS) at a number you know to be real and discuss the claimed problem with them.  For Social Security or Medicare, look up their phone numbers on the Internet (remember that the websites end in .gov), and again speak with someone there.  For calls claiming to be from a family member in trouble, use another family member’s phone (or a neighbor’s phone) to call the family member directly at a number you know.  Additionally, discuss issues with family members in advance, and have a secret “safe” word that the family member could use to let you know it is really them.
• Tech Support Scams – These involve scammers who falsely inform you that you have a virus or security problem. These again can be delivered via e-mail, text, or via a pop-up on your computer.  The scammer will either want to gain access to your computer to “help you with the problem” or will request a payment to fix the problem.
  • The solution: Don’t respond to the e-mail or text.  If a pop-up occurs, close down your browser.  Make sure that you have updated anti-virus software on your computer (purchased from a known reliable source).  Run a scan of the software to ensure that the alleged issue doesn’t exist.  If in doubt, arrange for a reliable vendor to check out your computer (your local computer store, a national office supply chain store, etc.).
• Romance Scams – These involve scammers who prey on the loneliness of seniors. These scams take a longer time to develop because they involve the scammer building an on-line relationship with the senior and then asking for money.  They may claim they need the money for a personal or medical emergency or may push an investment opportunity.  If the scammer is posing as a person overseas or in a remote location, they may ask for funds to pay for plane fares and travel expenses (but then, after they have the funds, provide excuses as to why they must delay their travel).
  • The solution: Don’t overshare information on-line.  Set your social media accounts to “private” to protect against scammers obtaining information from these accounts.  Discuss the person with family members who can help you get an outside perspective.  Perform a reverse image search on any pictures sent to you (they may reveal a person with a different name and/or different location or that the picture sent is a stock photograph).  Don’t invest without speaking with your financial advisor or a trusted family member or friend.
• Victim Targeting – These involve scammers (maybe even the same people who initially scammed you) who promise to help you recover funds lost to scammers. They may ask for upfront payments as well as personal financial information.
  • The solution: If you have been scammed, do the following:
    • Notify trusted family members and friends
    • Contact your bank and/or investment advisor to report the incident
    • File a local police report
    • File a report with the Federal Trade Commission
    • Let the bank, investment company, your financial advisor, your tax accountant (trusted advisors) and the local police provide you guidance regarding recovery of lost funds.

Scammers know that seniors are easier to scam than others and may hesitate to report fraud because they feel embarrassed or don’t think anything can be done.  Following the above steps can help you avoid becoming the victim of such scams.

If you require a forensic accounting expert in Philadelphia and the Delaware Valley, please contact the Philadelphia forensic accounting firm of David Anderson & Associates by calling David Anderson at 267-207-3597 or emailing him at david@davidandersonassociates.com.

About David Anderson & Associates

David Anderson & Associates is a Philadelphia forensic accounting firm that provides a full range of forensic accounting services in Philadelphia and the Delaware Valley. The experienced professionals at David Anderson & Associates provide forensic accounting, business valuation, fraud investigation, fraud deterrence, litigation support, economic damage analysis, business consulting and outsourced CFO services.

Company principal David Anderson is a forensic accounting expert in Philadelphia with more than 30 years of experience in financial and operational leadership positions. He is a Certified Public Accountant, a Certified Fraud Examiner, and a Certified Valuation Analyst.