SPRINGFIELD — When Lisa Pandolfi logs onto her computer each morning at Freedom Credit Union, she’s on alert for scams targeting the credit union’s senior citizen members. She’s watching all day, every day for strange or suspicious transactions.
“We have systems that alert me if all of a sudden, money starts going out of an account. I get an alert that detects increased elderly spending, and I’ll look into it and see where the money is going,” said Pandolfi, the credit union’s fraud analyst.
“I had a woman who was doing a small wire transaction, and it came across my desk. I’m nosy, and I noticed she had done a few within the last month, so I called and explained to her, ‘I think this is fraud,’” said Pandolfi.
Once the money is gone, it’s nearly impossible for any financial institution to recover the looted cash. What’s left is to report the fraud to authorities, who gather data, identify trends and the tactics fraudsters are using, and try to come up with an action plan that prevents further theft.
Inside the main vault at Freedom Credit Union, where people have their safe deposit boxes. (Sebastian Restrepo / Special to The Republican)Sebastian Restrepo / Special to The Republican
Bay State rip-offs
According to the FBI, financial fraud against people over 60 is skyrocketing — up nationally by 84% since 2021, with victims filing 17,800 complaints.
The problem is more severe in Massachusetts, compared with many other parts of the nation. In its Elder Fraud Report, the FBI states 1,653 Bay State seniors over 60 lost a total of $70,100,868 to scammers in 2022, worse than 46 other states, territories and Washington, D.C.
“Seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes, because they are often polite and trusting, have difficulty saying no, may be lonely or spend a great deal of time alone,” FBI spokesperson Kristen Setera told The Republican.
“Seniors are often financially stable and own their homes, which make them enticing targets for fraudsters,” she continued.
There are actually more victims than the FBI knows about, because seniors are too embarrassed to tell anyone they’ve been ripped off, said Setera.
Fraudsters have a large and growing arsenal of plots they use to rip-off seniors. Criminals might pose as technical or customer service agents, offering to help with made up computer or billing issues. Some con artists try to convince seniors that they’ve hit the lottery and need to send in money to claim their prize. Cheaters might also pose as government agents or call with dubious opportunities to invest in real estate or secure a reverse mortgage.
Nathaniel Mish, an assistant branch officer, seen here guarding his pin at the ATM just outside the main Freedom Credit Union branch in Springfield. (Sebastian Restrepo / Special to The Republican)Sebastian Restrepo / Special to The Republican
Tainted love
Victimizers also tug at the heartstrings of seniors, reaching them through social media platforms, such as Facebook or Instagram.
“During the holidays, many elders are alone. They don’t have family, their spouses may have died, and they’re being targeted by individuals via online romance scams,” said Lisa Rivera, protective services program director for Greater Springfield Senior Services.
Half of the 12 scams against seniors reported to the service agency in October involved cash and love lost online.
“Seniors are befriended either on a dating app or through social media. There’s a conversation that takes place. The scammer will build an emotional connection with the elder, and at that point, they’ll ask for money,” said Rivera.
Banks, credit unions and social service agencies, along with federal and state governments, are mobilizing, trying to protect seniors by telling them how to flag and avoid financial threats and perils. The FBI made a presentation recently at the South Hadley Public Library. Freedom Credit Union and Senior Services also make public appearances, helping seniors at group meetings or in person.
“I tell seniors over and over again, do not isolate yourself. Please reach out to someone. You did not do anything wrong. It’s not your fault,” said Pandolfi.
Scammers are coming at seniors from every direction — online, on the phone, knocks on the door — one even got a letter looking like it came from the United Nations, with an official asking for money to help someone get home.
Some traps might seem more absurd than others, but most are frighteningly enticing, because scammers are getting better at what they do, learning from their mistakes and refining their approach. They’re also counting on seniors being easy targets.
“Their credit is good. They might have a larger nest egg, and they come from an age group that was very trusting. They never had to lock their doors when they were young, and they would do anything for anybody,” Pandolfi.
Verify, don’t trust
Trust can be an elder’s greatest enemy when it comes to being tricked. Seniors are told to be wary and skeptical of any unsolicited contacts, warnings or offers. Experts advise to get off the phone, ignore the message, and if there is no way to verify the contact is legitimate, ignore it.
If a senior has a love interest on the line, experts recommend to validate that, too, by seeing if the person has a significant online presence with photos of family, friends and themselves. Don’t meet in person, and see if they have a legitimate local address. Some bad actors are based overseas.
“The romance scams are bit more difficult, because you’re building this emotional connection. But, look for discrepancies in stories, ask them follow-up questions about where they live, see if there is a way to do a video chat instead of a phone conversation. Try to take precautions, and confirm identities,” said Rivera.
While some seniors are quick to trust scammers, many resist help from their own financial institutions, dubious of calls asking about specific transactions or if everything is OK.
“Fraudsters are very good at what they do: They know exactly how to brainwash seniors. … But seniors want to be independent. They don’t want to ask for help. And fraudsters coach them on what to say,” said Pandolfi.
In some cases, Senior Services can do competency checks to identify seniors at a greater risk of being scammed. And while some elders are home alone, others have family in the area — but financial institutions can’t let relatives help out or tell them anything about the finances of their loved ones, unless they have legal permission to do so.
“It’s a privacy issue,” said Pandolfi. “If the family member is on the account, I can absolutely speak to them if they’re joint owners, but if they’re not on the account, I can’t give them any information.”
According to the FBI, anyone who believes they are a victim of fraud, or know a senior who might have been — regardless of financial loss — should immediately report the incident to their local FBI office or other law enforcement agency, or to the Internet Crime Complaint Center at ic3.gov.
Seniors also should contact their financial institution immediately.
Freedom Credit Union has held recent free educational sessions for seniors in Agawam, East Longmeadow, Chicopee, Springfield, West Springfield and Greenfield. Its next one is Wednesday, Dec. 20, in East Longmeadow.
Staasi Heropoulos is a longtime Western Massachusetts television and print journalist. Send human interest and feature story ideas to staasi.heropoulos@gmail.com.
