Like most of us, Hiep Nguyen regularly receives scam phone calls. Although he usually ignores these unexpected phone calls, one recent scammer had a convincing trap.
After the caller ID identified the unknown caller as the Vietnamese Embassy, Nguyen picked up. The caller claimed that someone was perpetrating crimes, like money laundering, in his name, which meant he needed to rearrange his finances.
However, as he had received an official IRS letter two weeks prior warning him that his identity might have been stolen, he immediately thought the situation was legitimate and started following the scammers’ directions. Within five months, he had redirected — and lost — around $500,000.
“Now I can’t sleep,” said Nguyen.
Don’t miss
I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
Losing a financial future after a lifetime of hard work
Nguyen immigrated to the United States over 50 years ago. Since arriving, he has worked tirelessly and saved his money along the way.
Now aged 65, he had planned to retire in the near future. But after losing his life savings, retirement might no longer be feasible for him.
“I lost maybe $500,000,” said Nguyen. “I don’t know when I could retire or if I have to work until I die.”
The scam worked in part because, with the IRS’s recent warning in mind, he thought that this was a legitimate government agency reaching out to help him protect his identity. So when the caller said he would need to send money to clear his name, Nguyen believed them.
Over the coming months, the scammers exchanged messages with him through Viber, an encrypted messaging app, with forged government documents and AI-generated videos of official protocols.
And, as is typical of many scams, scammers directed him to transfer money via a wire transfer. In the quest to clear his name, he transferred most of his life savings.
Eventually, he determined that the money wasn’t coming back and worked up the courage to reach out for help by sharing the situation with his daughter.
“I was in shock, I did not know that this was going on for the past five months,” said his daughter, Kathy Nguyen. “He didn’t have anything left and he needed to reach out for help, but he was ashamed.”
Currently, Nguyen is in the process of selling his house with the goal of paying off the debts incurred throughout this process.
His daughter is doing everything she can to help him get back on his feet, including starting a GoFundMe, which has already raised five figures to help him get back on his feet.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Elder fraud is on the rise
Elder fraud is heartbreaking. But it’s also more common than you might think. And it’s on the rise.
According to the FBI, elderly Americans lose more than $3 billion per year to scams. In 2023, that number was $3.4 billion — an increase of 11% from the previous year, with government impersonation scams accounting for $180 million in losses.
Although this government impersonation scam hurt the Nguyen family, it’s not the only type of fraud out there. Some of the most common elder scams include romance scams, lottery scams, tech support scams, sweepstakes scams and loved ones in trouble scams.
But vigilance can help you stay safe.
Start by treating any unsolicited phone calls, mailings and other offers with caution and skepticism. If you do receive an unsolicited offer, search for the appropriate contact information of the alleged party online.
For example, if ‘your bank’ calls to ask for a funds transfer, consider hanging up and dialing the official number on your bank statements to sort out any issues.
If you feel any pressure to act quickly, resist the urge. Scammers are known to use pressure tactics, such as threatening arrest, that could encourage you to make a rash decision and limit time available to second-guess what you’re being told. Avoid making a decision on a tight deadline.
If you do fall victim to a fraud, reporting it to the FBI is a good idea. Even if they cannot help you recoup your funds, your tip could protect potential future victims and help raise awareness of any new tactics scammers are using.
What to read next
JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
