Tag Archives for Federal Trade Commission

Older adults attract scammers with popularity of cyberdating

Published in RINewsToday on February 10, 2025

Digital technology is not just a way to find information and news, shop, or even search and apply for jobs.  For older single adults, getting back into the dating scene can be difficult. It could be after a divorce, or death of a spouse, or just deciding some years too late that having a mate is something desirable at this time of your life.

Dating rules have changed since years ago. But, since the mid-1990s, when Match.com, the world’s first online dating website was launched, millions have utilized internet dating as a way to meet potential partners without leaving their home.

Today, online dating, sometimes referred to as cyber-dating, has replaced traditional ways (like belonging to civic groups, clubs and attending church) singles use to find that special person.

Even though many might consider on-line dating a crap shoot in finding that perfect person to spend the rest of your life with, a growing number of older adults are using online dating platforms.  And many, unfortunately, are falling for online dating scams, as well.

A Snapshot of Older Online Daters

Last July, an article penned by Olivia Sidoti, research assistant, and Michelle Favero, research associate at Pew Research Center, provided an analysis of how older adults experience dating sites and apps and their views of online dating.

The data, obtained from a survey conducted in July of 2022,  was taken from a 74-page report, “From Looking for Love to Swiping the Field: Online Dating in the U.S., released on Feb. 2, 2023.

According to the Pew study, about a quarter of older Americans in their 50s have used an online dating site, compared to 14% percent in their 60s and 12% in their 70s and older.

However, just 3% of the older respondents are currently using online dating platforms or have used them with the last year, compared with 15% of those under age 50.

The Pew study found that 6% of the respondents over age 50 who were married, living with a partner or in a committed relationship, found their significant other online.

With so many dating sites and apps available to choose from, the survey findings indicate that about 1 in 5 online daters have used Tinder.

About half of the adults age 50 and over cite seeking a long-term partner or spouse as the reason they have online dated in the past year. Meanwhile, about 36% say they want to date casually, with 22% saying their motivation is casual sex.

The researchers found that women aged 50 and over are more likely than males who use a dating site or app to say their dating experiences have been negative.

About half of the online daters ages 50 and over say they have encountered someone who they thought was trying to scam them.  Furthermore, about four-in-ten online daters ages 50 and older (45%) report unwanted behaviors while seeking a date online. Specifically, they were sent sexually explicit content they didn’t ask for (33%), and 26% were continually contacted after they expressed disinterest. Seventeen percent of the older users report they were called offensive names, and 4% were physically threatened.

Protecting Yourself When Online Dating           

According to the Centers for Disease Control and Prevention (CDC), nearly one in four individuals older than age 65 are considered socially isolated. Older adults are at risk of isolation and loneliness due to living alone, loss of family and friends, chronic illness and hearing loss.  

CDC says that there are also physical health risks as well. Those dangers include significantly increased chances of an early death, 50% increased risk of dementia, 29% increase in the likelihood of developing heart disease and a 32% higher chance of having a stroke.  

There’s a Class for that!

With so many older adults not having meaningful relationships with their family or without having a significant partner, Sun City, Arizona-based Banner Olive Branch Senior Center offered a class covering the basics of finding love and companionship online.    

“We feel this is an important topic to address because there are many seniors [in our community] who are alone,” says Jackie Cromer of Banner Olive Branch and instructor of the online dating class held last April. “It’s an approach to add some fun and excitement into their lives and allow seniors to feel connected and potentially even find love,”  she said.

The class covered which dating sites to select, how to write and choose photos for your dating profile, the best ways to find and connect with potential matches, how to handle rejection, and emphasized safety tips such as not giving personal information, meeting in a public place, transporting yourself to the date and letting loved ones know your whereabouts. 

Tips on Protecting Yourself Against Romance Scams

As a growing number of older adults go online to search for that special person, scammers take advantage of these individuals. According to the Federal Trade Commission (FTC), in 2022 almost 70,000 people reported being a victim of a romance scam.

Be aware of “red flag” indicators of a potential romance scam, when approached on a dating site, warns Home Security Investigations (HSI), the principal investigative arm of the U.S. Department of Homeland Security, noting that scammers seek to gain the victim’s trust and then provide false information or misrepresentation to gain a financial benefit.

Here is some advice from Home Security Investigations (HSI):

HSI urges older online daters to watch out for the following indicators of a potential romance scam, when a potential partner:  

·         Claims they live, work or are traveling abroad.

o    Lacks proper grammar, although they claim to speak English.

·         Claims to be notably younger than you.

·         Quickly professes love to you.

·         Has a story that is inconsistent.

·         Has a minimal online presence.

·         Sends general photos (mostly fake/AI generated) of themselves traveling, shopping, or dining at luxurious locations.

o    Sends or requests explicit photos or videos.

·         Mentions the idea of meeting and being together soon.

·         Provides periodic excuses for being unable to make a video call (e.g., Facetime).

o    If a video call happens, you’re unable to see their face clearly.

·         Requests to have conversations/texts be moved to a separate app (e.g., WhatsApp, Telegram).
Asks for money, often via non-traditional methods such as cryptocurrency or gift cards.

o    Asks if you’ve ever invested in cryptocurrency and/or foreign exchange market.

o  Sends a business link of a cryptocurrency and/or foreign exchange trading platform.

o    Is combative with you or tries to divert your attention when you question their intentions.

Lastly, if your bank contacts you to express concern you are being victimized, this is perhaps the most significant red flag that you are being targeted.

You can also call the AARP Fraud Watch Network Helpline at 1-877-908-3360 to talk with a trained specialist about protecting yourself when seeking a relationship on a dating site.

Matchmaker, Matchmaker, make me a match!

Many are now saying that the most successful way to find that appropriate partner is to be introduced to her/him by someone you know – be that family or friend. And, while not plentiful, and sometimes expensive, matchmaking services that match you up for a date, one on one, are around, even in Rhode Island. The good part is they will coach you on what to where, what to talk about if it’s been awhile since you had a date-convo, and if after the date, it doesn’t work out, they will handle the uncomfortableness of that conversation with the other party – and keep working on your behalf. Some matchmaking services advertise on local radio, and that may be a good place to start. All the rules of scams and checking out the company or person are still advisable, of course – ask for references!

And let us know how it goes – until then – Happy Valentine’s Day (week)!

___

Senate Aging Committee tackles AI generated scams

Published in RINewsToday on January 8, 2024

Over two months ago, U.S. Senate Special Committee on Aging Chairman, Bob Casey (D-PA), put the spotlight on Artificial Intelligence (AI) driven fraud and scams. During the Nov. 16 hearing held in SD-106, “Modern Scams: How Scammers Are Using Artificial Intelligence & How We Can Fight Back,” the Senate panel highlighted the most common scams targeting seniors in 2023 with a focus on how scammers are using AI to create voice-clones and deep fakes to deploy scams and convince targets of their veracity. The hearing also explored how AI is being used to enhance fraud detection technology.

During the Senate panel hearing, lasting one hour and a half, Chairman Casey announced the Senate Aging Committee’s release of its annual Fraud Book, and brochure on AI-powered  scams and a bookmark featuring tips to avoid scams. Chairman Casey also noted he would approach the Federal Trade Commission (FTC) to request information about the agency’s work to track the use of AI scams targeted to older Americans.  On Dec. 5, Casey sent a letter to the FTC urging the agency to track AI scams.

Senate Panel Takes a Look at AI’s Good and Bad

“Today, we heard disturbing testimony about scammers using artificial intelligence to make their ploys more life-like and convincing,” said Chairman Casey in his opening remarks. “Any consumer, no matter their age, gender, or background, can fall victim  to these ultra-convincing scams, and the stories we heard today from individuals across the country are heartbreaking. As a parent and grandparent, I relate to the fear and concern these victims must feel. Federal action is needed to put up guardrails to protect consumers from AI—while also empowering those that can use it for good,” he said.

At the Senate Panel hearing, Ranking Member Mike Braun of Indiana warned that an increasing number of sophisticated fraudsters are carrying out AI attacks on seniors by utilizing voice-cloning and deepfakes to create images nearly identical to a real-live  person to dupe consumers into giving away valuable information and money.

“In context of frauds and scams, AI can be leverage negatively – but it can also be part of the solution,” says Braun.

According to Braun, the private sector has used AI and machine learning since the 1990s to combat fraud.  He called on the federal government to embrace similar technology by testing promising solutions to systems that suffer the most fraud, like Medicare.

Gary Schildhorn, a Philadelphia attorney told the Senate panel about his story of an attempted scam against him where his son’s voice was cloned by AI.  When he received a call that sounded like his son Brett, saying he had been in a car accident and needed $9,000 to post bail, he almost fell for the scam.

“There was no doubt in my mind that it was his voice on the phone—it was the exact cadence with which he speaks.  I sat motionless in my car just trying to process these events. How did they get my son’s voice? The only conclusion I can come up with is that they used artificial intelligence, or AI, to clone his voice…it is manifestly apparent that this technology… provide a risk-less avenue for fraudsters to prey on us,” says Schildhorn.

In his testimony, Steve Weisman, an Amherst attorney with Margolis, Bloom & D’Agostino who teaches white-collar crime at Bentley College in Waltham, pointed to the Federal Trade Commission’s Consumer Sentinel report for 2022, revealing that seniors reported more than $1.6 billion in losses to frauds and scams. But the actual amount could be as high as $48.4 billion, he says, because many were afraid to report losing money due to embarrassment or sham.

Seniors Tempting Target to AI Scammers

Seniors are the target of scammers because “that is where the money is,” notes Weisman, because they may have a “life time of accumulated savings that make them a tempting target for scammers.”

According to Weisman, AI has created additional opportunities for phone call scams,  because it can be used to remove foreign accents from scammers voices, making them appear more reliable.  AI created Robocall scripts can enable conversations with the scammer’s targeted victims, too.  Finally, AI cloning technology can make the targeted victim below they are talking to a loved one.

Weisman says that AI can be used by scammers to set up social media bots that appear to come from “real” people.  This allows them to create large numbers of believable bots to promote numerous scams, particularly involving cryptocurrency.

Scammers are now using AI technology more effectively in romance and family emergency scams, too, warns Weisman. 

AI can create fake profiles on multiple dating platforms, writing a grammatically correct biography, making it easier for scammers in foreign countries who are not familiar with speaking English. AI can also create photos or deepfakes for the profile, he says.

Weisman told the panel that AI generating software can create an audio voice that sounds exactly like that of the grandchild, using as little as 30 seconds worth of the grandchild’s voice.

Seeking a Balanced Approach

“The interplay of AI and scams brings forth both challenges and opportunities. Striking a careful balance between fostering AI innovations and protecting vulnerable populations is paramount,” says Dr. Tahir Ekin, of the San Marcus, Texas -based McCoy College of Business.

“In the fight against AI driven scams, awareness and AI literacy are crucial weapons,” says Ekin. “Existing efforts that educate seniors on safe digital practices, such as the work FTC Federal Advisory Council and the “Pass It On” campaign, can be enhanced to include AI related scams,” he says.

Tom Romanoff, Director, Technology at the Washington, DC-based Bipartisan Policy Center, stated, “As the good of this technology is being explored, we must acknowledge AI’s risks and seek a balanced approach, focusing on curtailing abuse while promoting positive uses and innovations.”

“As I stated in the beginning, we must tackle the abuse while driving toward positive application to safeguard its adoption,” says Romanoff.

To view the Senate Aging hearing, held on Nov. 16, go to: https://www.youtube.com/watch?v=7CMhzgQdz_I.

For a copy of Fighting Fraud: Top Scams in 2022,  go to https://www.aging.senate.gov/imo/media/doc/fraud_book_2023__english.pdf

AARP Report: Scammers targeting military community

Published on November 15, 2021 in RINewsToday

Just two days before the nation celebrated Veterans Day, the Washington, DC-based AARP issued a report revealing that veterans, active-duty service members, and their families are nearly 40% more likely to lose money to con-artists than the civilian population. According to the new research study, detailed in a 26-page report, 4 out of 5 military/veteran adults were targeted by scams directly related to their military service or the benefits they receive.

Fraud cost veterans, service members and their families more than $338 million in the five years ending in 2019, notes AARP citing Federal Trade Commission (FTC)  data. The median loss for military scam victims in 2019, $894, was nearly triple that for the population at large.

“Our research shows scammers are taking aim at the veteran and military community at alarming rates, emphasizing the importance of staying up-to-date on the latest scams and how to avoid them,” said Troy Broussard, Senior Advisor, AARP Veterans and Military Families Initiative. In a Nov. 9 statement announcing the survey’s findings.“ Knowing the red flags can not only help veterans, military and their families avoid losing money, but also avoid the emotional toll from scams,” he said.

AARP’s report, “Scambush: Military Battle Surprise Attacks from Scams & Fraud,” prepared by Jennifer Sauer, AARP Research and Pete Jeffries, AARP Veterans and Military Family Initiative, noted that scammers will use military jargon and specific government guidelines to craft an effective scam pitch to steal money from military members and veterans. One in three military/veteran adults reported losing money to these types of service-related scams.

Many military/veterans survey respondents fell for the Benefit Buyout scam by turning over U.S. Department of Veterans Affairs pension and/or disability benefits for a supposed lump-sum payment that never materializes (47%). Thirty-two percent admitted they were scammed out of money by paying for updated personal medical records, a service provided for free (Fraudulent records scam). Finally, 32% reported that they donated to fake veteran charities.

According to the AARP report, military/veteran adults also reported losing more money than civilians on the grandparent-impostor scam (more than twice as often) and financial phishing schemes (nearly twice as often). Nearly half of military/veteran adults said they are not using a robocall blocking service and over 1 in 4 have not registered their phone numbers on the National Do Not Call Registry. Finally, 81% of military/veteran adults have not placed a security freeze on their credit report.

Fight Back Against Scams

The U.S. Department of Veterans Affairs (VA) and Federal Trade Commission (FTC) provides helpful tips here: https://www.aarp.org/money/scams-fraud/info-2019/veterans.html?intcmp=AE-FWN-LIB4-POS16 to protect yourself against con artists who call you about your government and service benefits.

Unsolicited calls offering you an increase in your military benefits or access to little-know government programs are likely scams.

Never pay for copies of your military records. These documents are free.

You can confirm if a VA phone call is legitimate by calling the agency directly at 1-800-MYVA411.

Hang up if you receive an unsolicited call from a VA representative asks you for personal information like your Social Security number. Personal data is NEVER requested by either phone or email.

Be cautious on returning calls displayed on your caller ID. Scammers can use technology to change the telephone number, called ID spoofing, to make a call appear it came from a different person or place, or even from someone you know.

VA does not threaten claimants with jail or lawsuits.  If the caller does this, it’s a scam.

When you have a benefits issue, contact a VA-accredited representative. The VA maintains a searchable database of attorneys, claims agents and veterans service organizations.

Take Advantage of These Resources…

AARP’s Fraud Watch Network recommends also recommends the signing up for the National Do Not Call Registry and using a call-blocking service. Additional measures include: using strong and unique passwords for each online account; using two-factor authentication when available; and placing a free security freeze on credit reports at each of the three major credit bureaus. Remember, veterans never have to pay for their service records or earned benefits—if told otherwise, it’s a scam.
 
Operation Protect Veterans—a joint program of the AARP Fraud Watch Network and the U.S. Postal Inspection Service—helps veterans, service members and their families to protect against fraud. The Fraud Watch Network also offers biweekly fraud alerts and a free Helpline (877-908-3360) through which veterans, military and the public can report suspected scams. The AARP Watchdog Alert Handbook: Veterans’ Edition explains 10 ways that con artists target veterans.

AARP’s survey was administered in August 2021 to a total of 1,660 people: 851 active or former U.S. military respondents and 809 non-military (civilian) adults ages 18 and older using NORC’s AmeriSpeak Internet Panel. The margin of error is 4.40% at the 90% confidence level.

To get a copy of  “Scambush: Military Battle Surprise Attacks from Scams & Fraud,” go to https://www.aarp.org/content/dam/aarp/research/surveys_statisti.cs/econ/2021/fraud-scams-military-veterans-report.doi.10.26419-2Fres.00502.001.pdf

For more information and resources for veterans on the latest fraud and scams, visit aarp.org/veterans.