The 4 Most Vulnerable People to Identity Theft
and Ways to Protect Against It

As tax season nears, so does the uptick in fraudulent spam calls from the “IRS” requesting to speak to you on an urgent matter or risk going to jail.  While many are savvy enough to know those calls are fraudulent, many do not. It wasn’t that long ago when our money and assets were safe, or at least there was a high degree of perceived safety.  Sure, there were fraudsters and scammers, but potential access to your personal finances was much more limited.  Unfortunately, the advent of the Internet, social media, and a global reach have led to a proliferation of scams that can quickly deliver a knockout blow to your savings.

While you need not be in a perpetual state of readiness, a healthy level of vigilance and skepticism can go a long way. It will protect your savings and prevent you from becoming a victim of fraud.

Who Is Most Vulnerable to Identity Theft?

Simply having a Social Security number makes you at risk for identity fraud, yet specific populations are more vulnerable to identity breaches.

• Children: Thieves particularly like children because they can use their Social Security numbers to create clean credit profiles for someone with a bad credit history or looking to open fraudulent accounts. Family members are often the offenders since they may have access to a child’s Social Security number.
   
• Seniors: As they’re often less tech-savvy than younger folks, seniors are more likely to fall prey to internet phishing and telephone scams.
   
• Social media users: Those prolific on social media have vast amounts of identifying information online, making them easy targets for resourceful fraudsters. For example, many people who were excited to get their Covid-19 vaccine posted photos of their vaccine cards online, containing much identifying personal information, including your full name and date of birth.
   
• Military: When active-duty military is deployed, they’re less likely to notice anything awry in their credit reports, and frequent relocation means their personal information gets shared with greater frequency.

How Can You Avoid Becoming a Victim of Identity Theft?

The four elements that can help you spot a scam. See also FTC Alert.

1. Scammers PRETEND to be from an organization you know. They may claim to be from the Social Security Administration, the IRS, a bank, a well-known company such as PayPal, Netflix, Amazon, or your local utility. 
    
2. Never give someone your password, bank information, PIN, Social Security number, or personal identifying information. Never settle a debt or problem over the phone from an unexpected call that came your way.  Many solicitors are scammers looking for money. If you pay these criminals, they will come back in a short period of time, claiming another discrepancy was found, and another payment is needed.
    
3. Scammers say there’s a PROBLEM or a PRIZE.  You’ve won a big prize; just make a good faith down payment to receive your winnings. If you do, you’ll never see that money again. 
    
4. Scammers PRESSURE you to act immediately. Whether a scammer or salesperson, pressure to act immediately is a red flag. Hang up the phone. You are in control. Don’t cede that control to someone else.  Scammers tell you to PAY in a specific way. They may insist you send money through a money transfer company or put money on a gift card. Then, they will ask you to give them the number on the back of the gift card.  Or, someone will send you a check, request you to deposit it and ask you to send them some of the money.  That check will bounce after you’ve delivered the cash to the scammer.

Major Scams Targeting Older Americans

Older adults lost $600 million to fraud in 2020 when the pandemic fueled spikes in almost all top categories of fraud federal officials say.

Whether it is Zoom phishing emails, Covid-19 vax card scams, phony online websites, or romance scams, please be leery when you venture online or on social media sites. Recently, the AARP highlighted some of the avenues fraudsters use to take your money.

For example, “You receive an email, text, or social media message with the Zoom logo, telling you to click on a link because your account is suspended or you missed a meeting,” says Katherine Hutt, national spokesperson for the Better Business Bureau. “Clicking can allow criminals to download malicious software onto your computer.”

Others will exploit what might be called the flavor of the month or topic of the day. Recently, the government said it would offer free Covid test kits. You can obtain yours at covidtests.gov/. The site takes you directly to special.usps.com/testkits to order.
But criminals attempt to impersonate these sites by adding a few letters or words like “free” within the link. The link appears legit, but it’s not. The fraudulent site will encourage you to divulge personal information.

While we won’t touch on every scam, we wanted to highlight romance scams, which led the way in 2020.

According to AARP, the scam works like this. You place your profile on an online dating site, and a potential partner entices you with their charm, intelligence, and good looks. But you don’t live in the same city or state.

Though you become attached, you never seem to meet this person. Eventually, an emergency, business crisis, or some problem “unexpectedly” surfaces, and you are asked to send money.  Give them cash, and they will continue to prey on you until you figure it out.

It seems obvious, but never underestimate how easily you can be tricked when love and your emotions are in play.
Avoid being defrauded by following several commonsense tips offered by the FTC.

1. Block unwanted calls and text messages.
    
2. Don’t give your personal or financial information in response to a request that you didn’t expect. Legitimate organizations won’t call, email, or text to ask for your personal information.
    
3. If you get an email or text message from a company you do business with, and you think it’s real, it’s still best not to click on any links. Instead, contact them using a website you know is trustworthy. Please don’t call a number they provided or the number from your caller ID.
    
4. Resist the pressure to act immediately. Legitimate businesses will give you time to make a decision.  
    
5. Know how scammers tell you to pay. Never pay someone who insists you pay with a gift card, by using a money transfer service, or by setting up a PayPal account. Additionally, never deposit a check and send money back to someone.
    
6. Stop and talk to someone you trust.

Finally, avoid the temptation of telling a scammer what you think of them. Yes, they may have been an ocean away from the scammer, but that won’t prevent a vindictive fraudster from placing your phone number on numerous fake ads or overwhelming you with robocalls.

Remember, these are sophisticated criminals that have access to the latest technology.

If, unfortunately, you find you have become a victim, you can report the incident to the FTC at https://reportfraud.ftc.gov/#/

At Riggs, we have created an Identity Theft Resource Guide with helpful information should you become a victim of Identity Theft.  If you would like a copy of this Guide, simply email bgraham@riggsadvisors.com and we will send you a copy.