A presentation at the Thompson Falls Senior Center last week educated citizens on how to be aware of potential scams and fraud. Presenters Blair Stapleton and Drew Czoik from the state Commissioner of Securities and Insurance Office traveled from Helena to Thompson Falls to inform the audience of potential fraud and scams via the internet and phone, primarily. The seminar, titled “Protecting the Big Sky,” was designed to educate investors, seniors, and consumers to safeguard their finances.

According to the CSI, fraud has been rising over the last five years. Reported complaints and financial losses have gone from $3.5 billion in 2019, to $12 billion in 2023. “People over 60 are the biggest targets and have been hit the hardest,” Cziok said. For example, in 2023 citizens over the age of 50 filed 65,924 complaints with a total loss of $1.7 billion for that age group. “One in 44 cases of elder exploitation get reported. This is largely due to embarrassment and fear,” Cziok said.

The common securities scams in Montana are Ponzi schemes, pig butchering schemes, romance scams, grandparent scams and government impersonation scams. Ponzi schemes are an illusion of big profits that promise a high rate of return with little or no risk, unregistered investments, and unlicensed sellers, on the victims’ investment. The scammer will pretend to be someone you trust who pressures you to act immediately and to pay in an unusual way, according to Stapleton and Cziok.

Cziok said that in order to protect yourself from pig butchering schemes, be skeptical of who you meet online, never rush into an investment, research anyone who offers to sell you an investment and report a scam to the FBI, local police, or the CSI. “Be wary of new friends asking you to help them by sending Bitcoin and cryptocurrency,” Stapleton said.

“Red flags for romance scams come from text messages or emails. People are pretending to be someone you know to gather information. Or they might be the wrong number texting you supposedly by mistake but continuing to engage you with the plan to gather information and reel you in for schemes to invest money,” Cziok said.

Grandparent scams are similar. People call pretending to be an elderly person’s grandchild who needs money now, often adding, “Please don’t tell my parents.” According to Cziok, AI models and voice changes can make the victim believe they are speaking to their grandchild. The perpetrator may also pretend to be the police or a doctor, waiting for the victim to disclose information.

Government scams come from people asking you for money via email or text. The government will never threaten to arrest you if you do not pay nor will they ask you to deposit money into an account or ask for personal information over the phone. Cziok suggests contacting the FBI, or DEA, or the government to identify the person who has contacted you and their phone number.

Stapleton advised making safe investment decisions to protect yourself. Avoid optimism bias, thinking “A scammer would never target me.” This is wrong to assume, according to Stapleton. Avoid negative emotions, not wanting to think about the possibility of being scammed, and illusory superiority bias thinking: Other people might fall for a scam, “not me.” Stapleton suggests citizens assign a power of attorney for self protection, and make sure beneficiaries are up to date. “You are your first defense,” Stapleton concluded.

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