The Expert Podcast

Today, we're going to talk about online fraud and scams, especially those targeting the elderly or even older people. Even if you're not elderly or an older person, the fraud schemes being perpetrated on large volumes of people in the United States have become an epidemic. It has now reached an enterprise level, with scammers treating it as a business overseas. We will discuss how to prevent this, especially if you have someone in your life who is being affected and is currently giving money to someone.

How do you get them to stop sending money? We will explore the psychology used by scammers, where these scams originate, and the regions most involved. Additionally, we'll talk about how to shift the blame away from the victims, detect scam patterns, and explore potential financial recovery options from institutions. First, let's look at the types of scams being used. Many scams fall into one of three categories: unrealistic investment scams, romance scams, and fear-based scams.

Unrealistic investment scams promise huge returns, with high-profit rates. For example, they may claim that you can double your money in two or three months. These scams often involve cryptocurrencies, bonds, or real estate investments. Cryptocurrency is frequently used because it’s a current trend and matches the modern technology narrative. It also targets unsophisticated investors who may be intelligent and well-educated but lack knowledge about cryptocurrency. Scammers exploit this by using the vague nature of crypto and sometimes embarrassing the victims by saying, "You should know about this; you’re a smart person."

The second type of scam is the romance scam, where the scammer starts a personal or romantic relationship with the victim, convincing them to send money for things like travel, medical expenses, business investments, or even pet care. The victim may genuinely believe they are in a relationship with the scammer.

The third type is fear-based scams, where scammers contact elderly individuals and claim they have missed jury duty, face arrest, or need to pay a bond fee. They may even claim that a relative is in jail or kidnapped. Often, the scammers will use voices that sound like the relative to make the situation seem real. Regardless of the scam type, the result is the same: the victim sends money to the scammer.

These scams operate on an industrial level, with large-scale "companies" mostly overseas, primarily in Asia. These companies have hundreds or thousands of workers constantly working on these scams. They target tens of thousands, even millions, of people. Although their success rate may be low, the labor is cheap; some workers are paid as little as 50 cents an hour to send emails, post messages on social media, or make calls. The scammers always try to transition the conversation to WhatsApp because, once on this platform, the conversation becomes private, reducing the risk of warnings from others.

The scale of this enterprise is massive. For instance, in Cambodia, it’s reported that half of the country’s GDP may come from scam-related activities. Whether or not this is accurate, it illustrates the magnitude of these operations. The scammers use highly sophisticated psychological tactics to manipulate victims, regardless of their education level. Even attorneys, doctors, and educators have fallen prey.

To combat this, it is important to understand that it’s not the victim's fault. The blame should not be placed on them for giving money; the scammers are the predators. If someone were minding their own business and got hit by a car that swerved off the road, they wouldn't be blamed for the accident. Similarly, victims should not be blamed for being scammed. Victims often want to be part of the solution, but first, they need to realize they’ve been scammed.

If you know someone currently being victimized, how do you break them out of the cycle? How can you get them to believe you? Many victims don’t want to accept that the person they’re involved with isn’t a real romantic partner or that their investment is a scam. You can approach this in three ways: use mainstream media to show articles or websites like Active Intel or the FBI website that describe these scams; involve someone they trust who has influence over them; or contact the financial institution they bank with to alert them of potential fraudulent activity.

While the bank may not immediately lock the account, they will be on notice that there could be fraud. Banks are supposed to look for behavioral patterns, such as unusual wire transfers or deviations from previous financial activity. If fraud occurs, they may bear some liability for allowing it. If you suspect someone has been victimized, legal advice from a qualified attorney could help with pursuing recovery options.

Elderly individuals are often targeted because they may be less familiar with technology or how social media works. They may also be more inclined to seek higher returns on their investments due to retirement and fixed incomes. With rising costs, scams offering higher income appeal to them. However, these scams don’t just target the elderly; people of all ages and backgrounds are affected equally, with men and women falling victim in similar proportions.

Victims may not report their losses due to shame or embarrassment. If you suspect this, give them the space to discuss it without judgment or blame, as shaming them might prevent them from opening up.

For more information on dealing with victims and fraud recovery, visit ActiveIntel.com or ActualHuman.com for consultations. If you found this video helpful, be sure to check out other videos on our channel for more insights into resolving fraud-related issues.