Retiree Lost $740,000 in Life Savings in Elaborate Scam: NY Times
Older Americans are increasingly becoming involved in elaborate scams designed by perpetrators to deprive them of their retirement savings, with the details and scope of such scams sometimes requiring the intervention of federal law enforcement. This is according to an research report Published this week by the The New York Times.
The subjects of the interviews were “ensnared in scams that could be so elaborate that they appeared as if they were created in a writer’s room and tested various plot devices,” the report said. “Scammers can pose as government officials, technical support staff or love interests. They coach victims on how to circumvent fraud prevention measures at financial institutions, and they use manipulative psychological tactics—isolation, a sense of urgency, or preying on people’s willingness to trust or connect—to keep the scam going.
Retired attorney Barry Heitin, 76, is among the subjects profiled in the story. He explained how he lost an estimated $740,000 in retirement savings due to the continued efforts of these bad actors.
Heitin lost this money over a period of just three months, “doing the legwork and making withdrawals from his bank accounts virtually every weekday as part of an elaborate scam,” the report said. “He believed he was helping the FBI secure his money and catch thieves who were after it.”
Such scammers are present in various online areas including dating websites, social media platforms, messaging apps and through the use of invasive, malicious software – to name a few.
“The nature of these schemes makes it almost impossible to recover the money, leaving victims with little recourse,” the report said. “The stolen money is often transported to offshore accounts or laundered through cryptocurrency wallets, which are quickly emptied.”
The losses are sometimes compounded by taxes. Withdrawals from retirement accounts – especially in such large amounts – can often come with a hefty tax bill, which victims have little means to cover after being defrauded.
“Potential losses from cybercrime exceeded $12.5 billion by 2023, up 22 percent from 2022, and more than triple 2019 levels, according to the FBI’s Internet Crime Complaint Center,” the report said. “But these numbers underestimate the problem, because many victims do not report their losses.”
In addition to these challenges, bad actors often single out victims over the age of 60 due to the perception of large savings. This age group suffered the largest losses in 2023, totaling more than $3.4 billion, according to FBI data cited in the report.
Federal agencies, including the Consumer Financial Protection Bureau (CFPB) have also attempted to raise the alarm about increased cases of financial exploitation of the elderly.
