Fraud is a $10 billion business, according to the FTC; Harrison’s workshop aims to protect people

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

Across the country, older Americans seem especially susceptible to fake calls and emails asking for 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 current figure thought to be as high as $62 billion because many cases go unreported, according to consumersaffairs.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 victimization 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 audience as much information as possible to show how these scammers collect information,” Turack said.

People should be suspicious of requests to pay with gift cards or “check refunds,” Turack said, where criminals send a check to be cashed with instructions to return the money.

“Nobody should ever have to do that,” Turack said. “That’s a red flag.”

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

The Federal Trade Commission’s website lists ways to spot a barrier. Among the main things to look for are callers who offer a price or say there is a problem.

Fraudsters have been known to use weather disasters, fake charities and scare tactics to lure people into handing over money.

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

Harrison police, for example, will not call or email to collect money, Turack said.

The Federal Trade Commission urges people not to give out personal information over the phone or online, even if the situation seems credible. Readily available technology allows scammers to “spoof” a phone number, making it look like a legitimate group like the IRS or the Fraternal Order of Police is calling.

Last week, Allegheny County Police charged two California residents with posing as the “Amazon Fraud Department.” The pair tried to trick 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 that her Amazon account was linked to more than $360,000 in illegal purchases. She was told to buy gold coins and, upon returning them, would be given a check to open a new Amazon account.

This sense of urgency or pressure is another red flag, according to the commerce commission. It’s a way to trap victims who feel frantic that they might be in trouble.

Federal Trade Commission data found that 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 fraud is the main fallout, with more than $4.6 billion lost.

The second in line is the fraud of fraudsters.

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

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

Scammers use exact 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 Federal Trade Commission’s Midwest regional office in Chicago, said fraudulent scams are the most frequently reported.

Nearly $2.7 billion in losses were reported nationwide in 2023.

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

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

The sophistication and prevalence of today’s scams make it difficult for uninformed citizens to discern what is real and what is fake, according to John Pastorek, president of the AK Health Foundation.

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

“Even more frightening are the skimmers that are placed in such safe places 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 had been hacked.

In July, two men allegedly set up credit card skimmers at the Shop ‘n Save in Plum and Community Supermarket in Lower Burrell.

Tawnya Panizzi is a TribLive reporter. She joined the Trib in 1997. She can be reached at tpanizzi@triblive.com.

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