Beware of Money Transfer Scams: Protecting Seniors from Impersonation Schemes

Similar warning also comes from the FTC.

Did someone urge you to move or transfer your money? Be cautious, as it could be a scam.

By Alvaro Puig Consumer Education Specialist January 19, 2024

Impersonators often kick off their schemes with a seemingly routine call, perhaps about suspicious activity in your Amazon account. However, these scams take a serious turn when the caller claims someone is using your information for criminal activities, putting all your money at risk.

The impersonator, posing as a helpful agent from the FTC or another reputable organization, insists that the court will seize the money in your bank account or retirement savings. To protect your funds or clear your name, they pressure you to swiftly transfer the money to a supposedly more secure account. Alternatively, they may instruct you to cash out your savings to buy cryptocurrency, gold bars, or put in a box. In reality, rather than safeguarding your money, you’re on the brink of losing your entire savings. The scammer gains control of the new bank or cryptocurrency accounts or arranges for the pickup of gold bars or cash “for safekeeping.”

How can you spot this scam? If the caller advises you to buy gift cards, visit a cryptocurrency ATM, or go to the bank in person while staying on the phone, it’s a scam. If they instruct you to deceive anyone asking about the large transfer or withdrawal, it’s a clear sign of a scam.

Here’s what you need to know and do to protect yourself:

1. FTC Impersonation Alert:
   • The FTC will never instruct you to move your money to “protect” it. Anyone making such claims is an impersonator and a scammer.
2. Ignore Unexpected Money Requests:
   • Disregard any unexpected requests for money. Never transfer or send money, cryptocurrency, or gold to someone you don’t know in response to an unexpected call or message.
3. Verify the Story:
   • If you suspect a genuine issue with your accounts, use a known phone number, website, or app to contact the company. Avoid using contact information provided in the message you received.
4. Stay Informed:
   • Learn about other impersonation scams and how to avoid falling victim to them. Stay vigilant and informed to protect yourself from evolving fraudulent tactics.

It’s crucial to be vigilant and skeptical when confronted with unexpected requests related to your finances. By staying informed and following these guidelines, seniors can safeguard their hard-earned money from scams.