During a recent workshop at the Pocahontas County Extension office, Barb Wollan, a human services/family well-being specialist with Iowa State University Extension, noted that financial fraud and scams are a growing problem in Iowa and nationwide.

You’ve seen headlines like “Iowan loses thousands of dollars in scam.” Now’s the time to protect yourself from these financial crimes, which are on the rise.

“Everyone, regardless of age, is a potential victim of theft and other fraud, swindles or scams,” said Barb Wollan, a human services/family well-being specialist with Iowa State University Extension.

“It’s a growing problem.”

Iowans lost nearly $30 million due to fraud in 2022, according to the Federal Trade Commission. Wollan presented the workshop “Spot, Stop and Avoid Scams” at the Pocahontas County Extension office recently after a bank in Pocahontas reported an uptick of fraud incidents throughout the county.

Older Americans are disproportionately victimized, Wollan noted, because scammers often target seniors.

“Older adults tend to have more assets and may be more trusting,” she said. “Also, they may not feel competent with technology, they may be isolated, and they can be easier to fool if they have dementia or other cognitive challenges.”

Older adults may also fear outliving their money, so the chance to get more money might appeal to them, Wollan added.

Scammers use a wide variety of methods to mislead, deceive and defraud, including in-person scams, the mail, computer/email, and the telephone. From 2013 to 2017, reported incidents of financial exploitation of older adults quadrupled — and the trend hasn’t slowed down.

“People ages 70 to 79 in that 2013-2017 study lost $43,000, on average, from scams,” Wollan said. “If the victims knew their perpetrator, the loss was even larger — about $50,000, on average.”

Those are just the reported incidents, Wollan said. Many of these crimes go unreported because the victims feel embarrassed that they fell for the scam. They may also fear retaliation from the perpetrator, so they stay quiet.

In addition, victims may also start questioning their ability to handle their own financial affairs if they get scammed.

How to spot a scam

While plenty of scams abound, watch for these red flags that are common to many types of fraud:

. The promise of getting something for nothing (free);

. Pressure to act now, since this is a limited opportunity;

. High-pressure sales tactics. “After a storm, for example, a scammer might approach you about installing a new roof on your home, but the person might pressure you to sign up by 9 p.m. today,” Wollan said. “That’s a warning sign of a potential scam.”

. Your personal information is required;

. Money transfers are required;

. Details of the deal are vague and confusing;

. The “offer” comes from an unsolicited contact, meaning you didn’t reach out to the person contacting you;

Watch for signs of trouble

The top three scams in Iowa include:

1. Imposter scams, including the “grandchild scam.” With this extortion technique, scammers contact potential victims and pose as that person’s relative — nearly always a grandchild. The scammer (who might reach out via phone, text message or email) says he or she has been arrested/detained after being involved in a car accident or other problem in Mexico or some other location. The “grandchild” asks for a large sum of money to ensure his or her release. “As of 2018, this was the most common scam in Iowa,” said Wollan, who added that one in five Iowans has lost money through an imposter scam.

To protect yourself, don’t be afraid to ask questions. “Ask the caller who is posing as your grandchild or relative to tell you when your loved one’s birthday is,” Wollan said.

Also, stop communicating with the person if you think you’re being scammed. Don’t worry about being rude. Just hang up the phone. Then report the incident at FTC.gov/Imposters.

2. Identity theft. Identity theft happens when someone uses your personal or financial information without your permission. Not only can thieves steal your money, but identity theft can damage your credit status, which could hurt your ability to get a loan or rent an apartment. To steal your identity, scammers can:

. Steal your wallet or purse to get ID, credit cards or bank cards;

. Go through your trash to retrieve bank statements or tax documents;

. Steal your mail;

. Install skimmers at ATM machines, cash registers and fuel pumps to digitally steal information from your bank card;

. Get personal information from your phone or computer when you use public wi-fi;

. Use “phishing” to get information from you through fraudulent email, texts or phone calls;

. Hack computer networks and databases;

. Look through your social media accounts to find identifying information in posts or photos, or ask for personal information in online quizzes and surveys.

You may not know immediately that a thief has stolen your identity, Wollan said. Be aware of bills for items you did not buy, debt collection calls for accounts you did not open, information on your credit report for accounts you did not open, denials of loan applications, and mail that stops coming to, or is missing from, your mailbox.

If you’re a victim of identity theft, contact the companies involved, such as your credit card company or bank. Also, file a report with the FTC at www.identitytheft.gov.

Be sure to file a police report, too, Wollan said.

“Even if the police can’t help, they can give you a police report, which you may need to take the next steps.”

In addition, contact the major credit bureaus, including Equifax, Experian and TransUnion. “Review and/or dispute credit reports,” Wollan said. “Ask them to freeze your credit, as well.”

To protect your identity, guard your social security number. Use a shredder to dispose of documents like bank statements or tax paperwork. Use strong passwords with a combination of letters, numbers and symbols to protect your online accounts. Check your financial statements monthly to watch for irregularities, and also check your credit reports regularly.

3. Fraud that’s conducted via telephone or online. This can take many forms, including “tech support” scammers who claim you have a serious problem with your computer, like a virus. They want you to pay for tech support services you don’t need, to fix a problem that doesn’t exist. They often ask you to pay by wiring money, putting money on a gift card or using cryptocurrency or a money transfer app, because they know those types of payments can be hard to reverse.

How you can fight back

Wollan offers these four tips to help avoid all these types of scams:

1. Check out the offer before you act, and ask questions. “Scammers play on your fear, and their goal is to get you to act quickly,” Wollan said. “Don’t fall for it.”

2. Don’t make any financial payments.

3. If you’ve already sent money, contact the company you used to send the money.

4. Report the fraud.

Wollan recommends the Iowa Concern hotline (1-800-447-1985), a free service that offers 24/7 phone support. “The Iowa Concern hotline has a lawyer on staff,” Wollan said. “They can help you learn about your rights and responsibilities regarding financial fraud.”

When you present the facts about financial fraud logically, it all seems obvious, Wollan said.

“When a potential scam is in progress, however, it’s not so obvious. Nearly everyone knows someone who has been scammed. Use these fraud-fighting tools to help protect yourself.”