Lawyer Loses His Retirement Savings in “Government Investigation” Scam
Category: Financial and taxes in retirement
Sept. 1, 2024 –You could write a best seller on the ingenious ways criminals use to steal money from people, especially those over 60. These crooks capitalize on a sense of trust to drain senior retirement accounts with ploys like asking for help on stamping out corruption, or rescuing a relative or friend in trouble.
Folks 60 and over are often targeted by cybercriminals because they are such a rich source of funds. Among all age groups in 2023, people over 60 lost more than $3.4 billion from scams, according to the F.B.I.
Per the New York Times, retired attorney Barry Heitin lost almost all of his retirement savings, $740,000, to an incredibly complicated scheme. Criminals persuaded him that he was helping out with an important government investigation, so he spent months and many hours draining his accounts, where the money vanished into the black hole of the Internet. What’s more, he owed the IRS taxes on his “withdrawals”.
Comments on "Lawyer Loses His Retirement Savings in “Government Investigation” Scam"
Admin says:
Just learned about another scam to be aware of. Emails that look like they are from the Social Security Administration saying your SS number has been compromised (or other problem). There is an attachment which they want you to open, which can really compromise your account! Be suspicious, the SSA doesn't send email with problems. If it looks suspicious, don't open it and definitely not an attachment. Don't email back or call any numbers. If you are worried, contact the SSA directly.
UncleAL says:
...attorney losing money....oh well........
John says:
Just goes to show you can’t be smug about “this could never happen to me”. These crooks are wily and anyone could get fooled. Keep your guard up!
Patricia says:
UncleAL - really?
ksw says:
Fear and greed are at root cause of most schemes.
Admin says:
Amen to fear as a motivator. On Saturday I came in as a friend was on a long phone call. It was Chase calling to tell him there had been some large charges made to his card, some of them international.
My friend was really upset, but the guy on the other end, who had a foreign accent, wouldn't let him go. He told him his credit and identity were being stolen, and kept asking to verify his personal and financial info, most of which the caller knew. That included recent charges on his credit card, most of his SSAN, where he had lived etc. My friend was in a panic - about to lose everything.
The call went on for over an hour. Finally my friend used my phone to call the real Chase (phone number on card), who said there had been NO unauthorized charges. The original rep overheard some of that conversation and told him, "looks like you just called our company, I can help you as well as them". After some discussion my friend finally hung up on the first caller, and asked for a replacement card from the real Chase. At my urging he called Experian to lock his credit. That way it would be difficult for the scammer to take out a loan or apply for credit card.
Hard to know exactly what the scammer was after - probably identity theft or to try to sell some credit protection service. Bottom line: My friend is pretty sophisticated, but this scammer was so skillful he was taken in. If someone calls you with a problem, hang up and call the real company. The IRS, Social Security and banks won't be calling - they write letters or possibly a text (don't always trust those). Don't give out any new info to a caller unless it is the usual verification question. The more the caller wants, the less likely it is legit!
Mike says:
Admin, Chase offers multiple text and email alerts about account activity including international purchases. I use them all. I don't understand with all the information about scams that someone would not hang up and call the known number tied to their account.
Admin Comment: Yes, it is hard to believe. But I walked in on the conversation and I can tell you the look of fear in my friend's eyes. The fear that he was somehow going to be cheated took over his normal sense of caution. Fear is a very powerful motivator - don't let it happen to you!