It is not the level of one’s intelligence that makes people vulnerable to financial scams, according to Jay Haapala, the guest presenter for UMRA’s May 2025 Living Well Workshop.  In fact, thinking you’re immune to scams can make you more vulnerable, cautioned Haapala, associate state director of community engagement at AARP Minnesota and head of AARP’s Fraud Watch Network program.

One of the more recent trends in financial fraud is cryptocurrency scams by parties who want to be paid through a Bitcoin ATM, Haapala said. These machines can be found at gas stations, liquor stores, and other retail establishments throughout the Twin Cities area. Unlike payments made through credit cards and banks, however, there is much less protection for fraudulent transactions through cryptocurrency kiosks.   

Minnesota enacted a law in 2024 that provides some protection, he said. The law (Minnesota Statute 53B.75) requires kiosk operators to post warning signs and to refund fraudulent transactions—for new customers who report the transactions within a 14-day period—up to a daily transaction limit of $2,000.

There is also pending legislation in Minnesota that would establish a consumer fraud restitution fund. This bill (S.F. 447), introduced in the Minnesota Senate in January, would set aside some money from business fines to help victims of financial fraud.

A long-held myth

Despite efforts to make people aware of financial scams, fraud losses are increasing exponentially. “We are headed in the wrong direction,” Haapala said. Losses nationally from fraud more than doubled from 2019 to 2021 ($2.4 billion to $6.1 billion), and increased further in 2023 to $10 billion even though the number of victims fell. 

It is a long-held myth that older people are targeted most often, said Haapala. In fact, people ages 20 to 39 are targeted three times more often than those over 70. The COVID-19 pandemic isolated people and made them more susceptible. Now, many more people are using videoconferencing and peer-to-peer payment apps, technologies that scammers can exploit. Venmo and PayPal are useful when dealing with known entities, Haapala, said, but he urged caution in using these payment options with strangers. Scammers also use anonymous technology to show fake screenshots of a victim’s bank account, facilitating investment fraud. 

“Grandparent scams” take advantage of AI (artificial intelligence) voice imitation software and video image technology to appear legitimate. Online relationship scams remain popular and are not limited to romance scams, according to Haapala.

Work from home job scams are also trending. They can involve purported job offers that require you to supply your personal information or money. Another job scam involves the unsuspecting victim in processing payments at home that are, in fact, part of a money laundering scheme, Haapala said. 

Other popular scams involve technology support alerts—“your computer has a virus”—and government imposters including purported toll road bills and USPS deliveries that require payment. 

AARP’s Fraud Network has a nationwide call center that provides support and guidance to people who have been targeted by scams, said Haapala. Even for those who do not lose money, dealing with scams can be both emotional and a waste of time!

—Barbara Shiels, UMRA Program Committee