Fraud or scams targeting over 50s: How to stay protected

Fraud and scams are increasingly costly for New Zealanders, with criminals targeting people online with sophisticated traps. 

In the 2020 financial year, online scams and fraud cost Kiwis almost $19 million, with an average loss of over $4,700 per victim. Sadly, those are only the figures that are reported – some people may be too embarrassed to admit they have been scammed, and not report the incident. 

In our Digital Trends Report 2022, we found that 49% of respondents said they had been targeted by online, phone or email scams, and a further 30% knew someone who had. However, just 56% of those respondents reported the scam.  

Everyone is at risk as scammers get more and more clever with their scams. With that in mind, here are some of the most common scams to be aware of, and what you can do to stay protected.  

Commons scams to look out for 

Cold calls

One of the most common scams right now is the cold call. Of the seniors in our Digital Trends Report who said they had been the target of a scam, 67% of them said it was via the phone.

A scammer will call your phone number claiming to be calling from a trusted institution such as the Inland Revenue Department (IRD). They will often say you owe the IRD money that you have to pay immediately or face serious repercussions, or they might even tell you that you are due for a major refund. Either way, they will usually ask you for personal details over the phone.

Similarly, you might receive cold calls about there being a problem with your computer, employment, or visa, or about another bill you need to pay. In all cases, they may use basic details about you to gain your trust, and they may have threats to force you to panic and provide your details quickly. 

If in doubt, hang up and call the institution they say they are from directly on their official number to verify the information. 

You can also report cold calls or any other scams with Netsafe, New Zealand’s not-for-profit online safety organisation.

Email phishing

Email phishing is when you receive an unsolicited email from a well-known company that asks you to verify your details or log into your account. Unfortunately, these scams are increasingly sophisticated, with many of them mimicking the layout and appearance of emails from actual companies. 

The problem is that these emails will provide a link for you to log in, which looks legitimate, but in fact steals your actual log in details. Or, the email might provide a link that requires your credit card number, or other sensitive information. 

These emails are highly dangerous as they can be so easy to fall for, especially when you’re not looking too closely while you’re rushing through your inbox. 

To be safe, always look at the actual email address of the sender, rather than just the name, as the email may offer clues about where it actually comes from. Also, only ever sign into an account from the website – not by clicking through a link in an email. 

Romance scams 

In 2020, romance scams cost victims an average of $18,735 each, making it one of the more expensive scams. 

In this scenario, a fraudster uses fake photos and a fake persona to meet people online. They enter into romantic relationships, but always make excuses for why they can’t meet in person. 

Eventually, they will ask the victim for money. They may lie about needing the money to visit in person, or about needing to pay a large bill. Whatever the lie, it is asked for – and often given – due to the personal trusting nature of the relationship. 

Dating later in life can be a wonderful way of finding love, but daters must be careful to meet their dates very early on in the relationship to ensure the person is real. Also, never send money to anyone you haven’t met, even if the relationship seems legitimate. 

Emergency scams 

Another scam that is especially dangerous for over 50s is the emergency scam. In this scenario, you might receive a text message or a call from an unknown number claiming to be a relative such as a grandchild. 

The ‘grandchild’ will claim to be in some kind of trouble, and ask for money to be sent immediately. They will also make it clear that you shouldn’t mention it to anyone else in the family because they are embarrassed. 

To avoid falling for these scams, always be aware of unknown numbers, and be highly cautious about anyone claiming to be a family member. If in doubt, hang up and call the number you have saved for that person, and don’t be afraid to ask a few verifying questions (What were you afraid of when you were little? Where did we spend Christmas together last year?) to make sure it’s really them. 

Tips for over 50s: Staying protected

Overall, it’s better to be safe than sorry and if you suspect something is suspicious, don’t be afraid to slow down and verify it before taking any action at all. 

Only 3% of seniors in our Digital Trends Report 2022 said they felt extremely confident in keeping their digital information confidential and safe, and 6% said they were not confident at all. 

Here are a few tips to keep in mind: 

  • Resist any demands to act immediately – take the time to verify the issue rather than panicking and just doing what is asked of you 
  • Be sceptical of any great deals or opportunities – if it’s too good to be true, it probably is (cheap lotto tickets, prize wins, etc) 
  • Install virus protection software on your devices 
  • Enjoy online dating, but insist on meeting in real life early – cut off contact if they make excuses 
  • Never click on links that you don’t know where they come from, or that you don’t know where they go
  • Never send money to anyone you don’t know in person 
  • Don’t give away personal details to anyone you don’t know 
  • Remember that the IRD, banks, service providers, and other companies will never ask for your passwords or personal details over the phone, text, or email 
  • If in doubt, ask a trusted friend or family member for a second opinion  

Protection you can trust

One final trick: Scroll your cursor over any link and look at the bottom of the page to read the URL to see where it goes. 

Try this on our New Zealand Seniors website! While you’re there, you can always have a look around and see what the Life Insurance product covers and whether it may suit you or fill out the form to request a quote. and see how much a policy might be. We won’t promise anything that’s too good to be true, but we do aim to always provide all the important information so New Zealand Seniors can be supported.

21 Feb 2023