How and why scammers fool us at great cost, and what to watch out for

As technology has brought many positive changes into our lives, it’s also brought a new danger: Cybercriminals can use technology to deceive people. They often gain their footing with “social engineering”—convincing someone to share information or allowing access to their accounts or personal information.

The elderly, who are often not as familiar with newer technologies, and who can be more trusting of “official-looking” communications, are their primary targets. Scammers will try to lull their chosen targets into a false sense of security in sharing information. From there, they excel at making them feel isolated and under pressure.

Anyone, of any age or background, can fall for these tactics and get scammed. While this may be unsettling to hear, it’s important to know that community is the best defense. No one needs to face scammers alone, and you have resources and people on your side. These can include trusted friends or family members, as well as your J.P. Morgan team.

With this overview of the dangers and defenses in mind, let’s take a look at how two common types of scams can work.

The unseen thief

Jane, a retired CEO and entrepreneur, enjoyed being a benefactor to her favorite charities. She managed her wealth carefully to ensure her family’s prosperity, provide a comfortable retirement and support charitable causes.

One day, Jane received an email that seemed to be from a reputable charity she had supported in the past. The message appeared sincere yet urgent, detailing a new program aimed at providing immediate relief to communities affected by a recent natural disaster. The email included compelling stories and images of those in need, tugging at Jane’s heartstrings.

The charity was launching a campaign where every dollar contributed would be doubled by a group of anonymous benefactors. It included links to a website with testimonials and endorsements. Moved by the cause and convinced of its authenticity, Jane decided to make a significant donation. She entered her financial details into what appeared to be a secure portal.

The portal was part of a sophisticated scam, designed to steal funds directly from her account. The financial impact, though buffered by her overall wealth, disrupted her philanthropic plans, requiring a strategic reevaluation. Afterward, Jane felt betrayed and vulnerable, questioning her judgment and the integrity of the charitable world she had long supported.

She’d fallen for a sophisticated phishing email scam. These scams tend to be extremely detailed, and are nearly undetectable by the human eye. Other phishing scams include posing as tech support, government officials or relatives in distress, as well as fake investment schemes and sweepstakes. Other scams include romance scams, robocalls and a host of others that attempt to steal money and personal information.

Or take Gerald, a retired engineer who received a call from “Amazon” stating that his account had been misused by criminals and the FBI was looking into the matter. Gerald was skeptical at first, but he slowly became convinced as “Amazon” provided a case number, identification numbers for the FBI agents and other information that seemed official.

The scammers told Gerald he had to pay a fine or he would be arrested, and they stayed on the phone with him while he withdrew cash from the bank. Only when they asked him to convert his money to Bitcoin did he finally realize he was being scammed. While he avoided financial loss, Gerald felt deeply ashamed he’d been tricked.

Recognizing how scammers operate

As a first line of defense, here are some approaches frequently used by scammers. Recognizing them can help safeguard your wealth, and that of your loved ones.          

• “Urgent” requests. Scammers often try to create a sense of panic—saying a grandchild is being held for ransom, or a fine or tax debt must be paid immediately, or an investment opportunity must be acted upon right away. This puts people in an emotional or “heated state,” where it is much harder to think rationally and logically, or ask if what they are hearing is true. They make choices they would never make under normal circumstances.
• You’re David. They’re Goliath. The battle against scammers isn’t a fair, one-on-one fight. No matter how informed and self-sufficient you are, you cannot on your own match the time, attention and resources that scammers invest in their targets. Often, several people will work together and spend considerable time, effort and resources “grooming” their targets. Only when it’s too late does the victim realize they were tricked by scammers.
• Technology is moving at a rapid pace. Scammers are quick to incorporate new technology into their schemes, such as using AI to simulate a voice. This is particularly dangerous for people who don’t keep up with technological innovation, but most people (even those who are not elders) can’t identify sophisticated scams—and you must consider this to design solutions. 
• Scammers weaponize trust. Scammers ask lots of questions to learn someone’s vulnerabilities. They want to know if someone is isolated from their family and likely to be feeling lonely, or if they have a grandchild in another country, making them vulnerable to a faked kidnapping scheme. They can then spend a substantial amount of time and energy building trust with their target, and begin to sow seeds of distrust in the other people in their life. The scammers’ goal is to create a bank of goodwill they can use to eliminate any doubt or questioning when they strike.
• Criminals manipulate emotions. They create moments of panic and fear, which interfere with brain function, and make it harder for people to think rationally and logically. The scammers use fear and urgency to get people to make decisions they otherwise would not.
• Scams prey on bias and blind spots. Typical adult responses—including feelings of self-sufficiency—can sometimes work in a scammer’s favor. You may think, “If I was the target of a scam, I would know it.”

Jane and Gerald were emotionally manipulated, and failed to recognize their own blind spots. They each assumed they would be able to recognize a scam, so they didn’t consider that the email or phone call might be fraudulent. They placed implicit trust in the system and acted alone. Let’s go over what they should have done before sending in a payment.

Have a plan

Whether it’s a suspicious email or an unexpected phone call, knowing how to respond can make all the difference. Here are some immediate steps you or your loved ones can take if you are ever in their position. We call it “Stop, drop and call.”

1.      STOP what you are doing

• If you suspect you are being scammed, stop providing personal information immediately, and do not send money. Do not click on a link or open attachments.

2.      DROP: Do not engage

• It’s always acceptable to abruptly end a call, stop replying to any emails that look suspicious, or to cease video chatting with someone if you suspect a scam. You are under no obligation to be polite or respond to scammers.

3.      CALL a trusted source

• Talk through the situation with a trusted family member or friend. It’s important to have someone offer their support if you think you are being scammed.
• Contact your J.P. Morgan banker via a trusted number. They are also part of your team, and can provide guidance and resources to help protect yourself from a scam and preserve your wealth.  

Adopting these habits can help you create a robust first line of defense against potential threats and build up their recognition—making it more likely you can pick up on future scams. By making these practices part of your daily life, you’ll be protecting your finances and personal data, as well as contributing to a safer digital environment for everyone.

We can help

Don’t wait until it’s too late—we can help. We study the constantly evolving ways scammers operate, and our Behavioral Science team studies how emotions influence decisions—and how to make better ones.

As cybercrime continues to grow, one of the first and best preventative steps you can take is to call your J.P. Morgan team and register a Trusted Contact Person on your account. For more cyber information and resources to better secure yourself, your family and your business, ask your J.P. Morgan team about our Cyber Advisory team, which has the resources to provide guidance.