Fraudsters Have Been Increasingly Targeting Older Americans With Elaborate Schemes: IRS

OAKLAND, CA — The IRS is warning the public about fraudsters who are continuously preying on older adults.

A recent investigation, Operation Silver Shores, by the Oakland IRS Office revealed an ongoing scheme where several suspects posed as attorneys and government officials to target timeshare owners.

The scammers told the victims they were entitled to legal timeshare settlements before pressuring them into sending money.

The suspects then used a "complicated web" of shell companies to launder the money they received from the victims, according to the IRS.

More than 20 people were arrested and charged last year in connection with the scheme, including Berkeley and Fremont residents.

The IRS says it's seen an increase in fraud targeting older Americans. Last year, the IRS opened 97 new elder fraud investigations. An Additional 64 cases have already been opened this year, according to the IRS.

These schemes include romance scams where suspects build an online relationship under false pretenses to solicit money; lottery and sweepstakes scams; charity scams; Ponzi schemes; cryptocurrency scams and emergency scams where fraudsters claim a loved one is in danger and needs financial help, according to the IRS.

In the last five years, scammers have defrauded older Americans out of more than $885 million. The IRS says it has secured a 97% conviction rate, with defendants receiving an average of four years in federal prison.

The IRS recommends taking the following tips to avoid becoming the victim of fraud:

• Hang up if someone claims to be from a government agency and asks for payment or personal information. Contact the agency directly using information from its official website.
• Slow down and verify the situation; scammers create false urgency to push victims into quick decisions.
• Protect your personal and financial information, especially in response to unsolicited messages.
• Consult a trusted family member, financial advisor, or attorney before sending money or making major financial decisions.
• Monitor financial accounts regularly and report suspicious activity immediately.
• Be cautious of new online acquaintances and verify identities before engaging further.
• Look for red flags, including pressure to act immediately or keep the matter secret; requests for payment via gift cards, wire transfers, cryptocurrency, or cash; unsolicited phone calls, emails, or text messages; requests for sensitive personal information; threats of arrest, legal action, or deportation.

The National Elder Fraud Hotline can be found here.