Fraud is a $10B business, according to FTC; Harrison workshop aims to safeguard people

Pennsylvanians lost more than $118 million in phone scams and other frauds last year, taking a particular hit during the holidays, according to the FBI.

Across the country, older Americans appear especially prone to fake calls and emails soliciting money for charities, “family emergencies” or other schemes, the Federal Trade Commission reported.

Nationally, senior citizens lost more than $1.9 billion in 2023, with the actual figure thought to be as high as $62 billion because many cases go unreported, according to consumeraffairs.com.

Adults over 60 lost more money than younger adults and also fell victim more often to scams involving technology.

Locally, residents can learn how to avoid being victimized during a special program Dec. 5 hosted by Harrison police and the Allegheny-Kiski Health Foundation.

Chief Brian Turack and Detective Joseph Signorella will arm people with tips on how to avoid falling prey to identity theft, card skimmers and phone scams.

The presentation is free and open to the public.

“We want to give the attendees as much information as possible to show how these fraudsters collect information,” Turack said.

People should be leery of demands to be paid with gift cards or “check reimbursements,” Turack said, where the criminals send a check to be cashed with the instructions to send money back.

“No one should ever do that,” Turack said. “That’s a red flag.”

The crimes often are difficult to investigate because, in many cases, they originate overseas.

The Federal Trade Commission website lists ways to spot a con. Among the top things to look for are callers offering a prize or saying there’s a problem.

Scammers have been known to use weather disasters, fake charities and scare tactics to lure people to hand over money.

Especially prevalent as the holidays near are charity scams, Turack said. There are groups that call or email to solicit donations, making people believe they’re giving to a family in need or emergency services.

Harrison police, for example, will never call or email to raise money, Turack said.

The Federal Trade Commission urges people not to give personal information over the phone or online, even if the situation sounds believable. Readily available technology allows scammers to “spoof” a phone number, making it appear as though a legitimate group such as the IRS or Fraternal Order of Police is calling.

Last week, Allegheny County Police charged two California residents posing as the “Amazon Fraud Department.” The pair tried to connive a 71-year-old Crafton woman into emptying her bank account, according to police.

They identified themselves as federal law enforcement agents and told the victim her Amazon account was linked to more than $360,000 in illegal purchases. She was told to purchase gold coins and, once she turned them over, she would be given a check to open a new Amazon account.

That sense of urgency or pressure is another red flag, according to the trade commission. It’s a way to trap victims who feel frantic over possibly being in trouble.

Federal Trade Commission data revealed consumers lost more than $10 billion to fraud in 2023, marking the first time losses have reached that benchmark. It was a 14% increase from 2022.

Investment scams are the top downfall, with more than $4.6 billion lost.

Second in line is impostor fraud.

Turack said his department receives a high volume of calls for fraud, especially what he said is a trending tactic called the grandparent scam.

“Someone receives a phone call saying their grandchild is in trouble and needs help,” Turack said.

The scammers use the correct family names and sometimes use artificial intelligence to replicate the family member’s voice.

“It’s so believable,” Turack said.

Matt Schiltz, staff attorney for the Midwest regional office of the Federal Trade Commission in Chicago, said impostor scams are the most frequently reported.

Nearly $2.7 billion in losses were reported across the country in 2023.

“Unfortunately, I’ve seen reports that people are using artificial intelligence to clone voices, or at least trying to, so the person calling may sound like a friend or a family member, or a famous person, a politician,” Schiltz told the Keystone State News Connection, an independent public service news group.

North Huntingdon police this year charged two New York City men with trying to bilk a township couple out of $18,000 by telling them Greensburg police arrested their grandson on drug charges. The boy would need the money before a 4 p.m. court hearing so he could be released from jail, the people told the couple.

The sophistication and proliferation of today’s con artists make it difficult for uninformed citizens to discern what is real and what is phony, according to John Pastorek, A-K Health Foundation president.

“We all receive authentic-looking calls for action from confederate financial institutions, utilities, retailers, charities and churches,” Pastorek said.

“The even scarier ruses are the skimmers that are placed in such safe locations as grocery stores.”

In September, a device was found in a checkout lane at Golden Dawn in New Kensington after a customer raised concerns that their card was hacked.

In July, two men were suspected of placing credit card skimmers at Shop ’n Save in Plum and at Community Supermarket in Lower Burrell.