A new type of scam is sweeping the nation, and it’s costing individuals actual money — sometimes their life savings. This summer, an 18-year-old from Michigan lost $4,800 after receiving an email that purported to be from his bank. Regulators report a significant increase in these scams over the past four years, resulting in significant losses for older Americans.
How the scam works
It starts with a bogus alert: you are informed that there is “suspicious activity” on your bank account or Social Security record. You are warned by the imposter that you have to immediately “transfer your money to protect it” from hackers, robbers, or even the government.
The call is urgent for a reason — the con artists want you scared. They may pose as bank staff, government officials, or even tech support from a well-known company like Microsoft or Apple.
In the case in Michigan, the adolescent received an e-mail announcing that his Flagstar Bank account had been compromised. Shortly afterward, he received phone calls from a person claiming to be employed at a bank. The individual requested that he verify his Social Security number and then pressured him to send $4,800 to an Apple Cash account “for safekeeping.
After the transfer was completed, the scammers quickly withdrew the funds. The money ended up in the hands of two sellers in Pakistan, police later determined.
A rising national issue
Preliminary findings from the Federal Trade Commission (FTC) show that complaints about these “transfer to save it” scams have exploded:
- Losses among older adults have increased more than four times since 2020.
- Victims 60+ have lost more than $100,000 in some cases.
- Estimated losses amount to $445 million in 2024, up a quintupling from just $55 million lost in 2020.
These scams come in many guises:
- Fake notices of serving as a juror and being in jail if you don’t pay.
- Fake bank fraud alerts instruct you to move money into “safe accounts”.
- Fake tech support notifications that your computer has been hacked.
In a Florida case, a woman was tricked into transferring $12,000 to a cryptocurrency ATM. In another, a victim lost $17,500 after depositing money into an account that was “protected by the credit union”.
Red flags to watch out for
Rushed requests for money transfers. No bank, government agency, or corporation is ever going to ask you to send money to keep it “safe”.
Demands for payment in another manner. Scammers will demand that you pay using cryptocurrency ATMs, Apple Cash, or wire transfers since these can’t be quickly traced or reversed.
Threats to arrest or close accounts. Crooks want you rattled and off guard so you’ll obediently comply.
Strange caller volumes or pop-up messages. Even a legitimate caller ID may be a fake.
How to protect yourself
Don’t react. Hang up, close out the pop-up, or delete the e-mail.
Verify directly. If you’re worried, call your bank using the number printed on your statement or debit card — not the number the caller gives you.
Block suspicious numbers. Keep scammers from calling back.
Stay calm and sceptical. Scammers rely on panic to override your common sense.
Report fraud. File a complaint with the FTC at ReportFraud.ftc.gov.
Apple Cash informs you that genuine businesses and government agencies never ask for payments through their service. The FTC will never ask you to pay money in the form of cryptocurrency or mail cash to couriers, either.
Bottom Line
And if they instruct you to relocate your cash “for your own safety”, it’s a scam — every single time. Whether you’re 18 or 80, hold your breath, check with your bank, and never send money based on a last-minute phone call or email.
They may sound official, but the aim is always the same: to have you transfer your savings to them. Be wary, trust your instincts, and remember – genuine banks secure your money automatically. You never have to “move it to keep it safe.”
