As Fraudster Scams Mature, How to Spot Red Flags

Beijing Morning Post News (Reporter Liu Si Hong) "High returns" and "low risk," enticing older adults to invest heavily; "free health checks" and "gifts," attracting older adults with offers of freebies; "scratch-off cards" and "group welfare," luring older adults into online scams... Today, fraud targeting seniors has become a five-flavor show. On October 23rd, Beijing Morning Post reporters compiled information from multiple law enforcement agencies and consumer feedback to try to decipher the most common scams affecting older adults.

According to data from the Dalian Anti-Fraud Center, the top three types of fraud affecting older adults in Dalian are "fake investment scams," "impostor scams," and "brushing scams."

Looking at the most common type of fraud, which is fake investment scams, we see that many older adults have been investing in stocks, funds, or financial products. Some scammers post investment courses on social media platforms, luring victims into investment exchange groups with promises of getting inside information and high returns, only to discover they've been scammed.

The entire process is designed to build trust with the victim by allowing them to invest a small amount of money and receive small returns. Once the victim has invested a large sum of money, the scammer disappears, leaving the victim feeling regretful.

Impostor scams are also common. Scammers often pose as the victims' "grandchildren," "nieces," or other family members and call them with urgent news about an accident or being taken in by police, demanding that they transfer money immediately. The scammer will use a sense of urgency to create panic and worry in the victim, while convincing them to act quickly.

There are also brushing scams. Generally, scammers send older adults small gifts such as phone cases or masks with a scratch-off card, claiming that scanning the code will allow them to join a group and receive benefits. They promise quick returns, easy operations, and high yields, luring victims into online scams.

It's worth noting that brushing scammers often use small initial returns, return-on-investment, or withdrawals to make the victim feel like they're getting a good deal. Once the victim has invested heavily, the scammer will then claim that there are no more withdrawals, and the investment is lost.

Why do older adults fall prey to these scams? It's not just one factor. As more and more older adults' children work busily, leaving them alone, older adults may feel lonely and isolated. Scammers take advantage of this vulnerability by using fake emotional connections to build trust with their victims.

"Many seniors have some savings accumulated in their accounts, and they generally lack financial literacy and investment knowledge. They are also prone to being taken in by online scams due to their limited understanding of new technologies." said Wang Pengbo, chief analyst at Bo Tong Consulting, told Beijing Morning Post reporters that from the characteristics of these high-frequency frauds, many involve fake investment projects or exaggerated returns, and older adults should be cautious when making investment decisions. They should choose reputable financial institutions and avoid investing in unproven projects.

Law enforcement also warns seniors not to trust online recommendations for "zero-risk" high-return investments and to consult with family members or children before making any investment decisions. Don't fall for high-yield returns, and be cautious of unexpected deliveries. Do not join unknown groups, as all brushing scams are fraudulent.