A personal finance expert faced a shocking scam involving Amazon, the FTC, and a $50,000 cash box.
When we think about individuals who fall for financial scams, we often picture stereotypes: the elderly, those using landline phones, or someone panicked by threats of immediate arrest unless they pay a hefty sum. These beliefs are misleading.
Recent findings from the FTC indicate that younger adults, aged 18 to 59, are 34% more likely to report financial losses due to fraud compared to older individuals. The scams targeting them often revolve around online shopping, frequently initiated by social media ads, leading to items never being delivered. Moreover, younger adults are over four times more susceptible to investment scams compared to their older counterparts.
Charlotte Cowles, a financial columnist known for her work since 2016, experienced a particularly intricate scam involving Amazon, the FTC, threats to her child, and the handover of $50,000 in cash through a car window.
While working from home, Cowles received a call from a recognized Amazon number alerting her to unusual activity on her account. The caller claimed to be coordinating with the FTC to investigate identity theft and asked if Cowles would allow a liaison to join the call.
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After being connected to someone posing as an “FTC agent,” Cowles learned that she was part of a vast investigation involving millions being wired overseas, with arrest warrants issued in her name across several states. “He knew my social security number, my family’s names, and my address. I felt threatened,” Cowles recalls, explaining how this led to her depleting her emergency fund after hours on the phone.
If you suspect you might be falling for a scam, Cowles advises reaching out to a trusted person before transferring any funds. “Many who avoid losing money do so not because they spotted red flags but because a conversation with someone else snapped them back to reality,” she explains. Tune into the podcast to learn about her experience, how she parted with her savings, and tips for handling suspicious calls from retailers or government agencies.
In the Mailbag section, we address a listener's question about the differences between hourly financial advisors and those with flat fees. We also provide insights on shopping for title insurance when purchasing a home. In this week's news roundup, we discuss upcoming changes to real estate commissions, implications of a higher-than-expected producer price index (PPI), and a new study on Americans' financial sentiments.
