Financial fraud losses are increasing exponentially
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
How to avoid being scammed
Tue, May 13, 2025, at 11am
Jay Haapala
Associate State Director of Community Engagement
AARP Minnesota
Event to be held via Zoom.
Financial scams are a multi-billion-dollar enterprise that has increased exponentially in recent years. According to the Federal Trade Commission, reported losses to consumers from scams in the United States rose from $2.4 billion in 2019 to $12.5 billion in 2024. New advances in technology along with social isolation are some of the factors contributing to the boom in scamming. Learning how to spot and avoid scams is more important than ever to your financial health.
Join us via Zoom at 11 a.m. on Tuesday, May 13, for UMRA’s Living Well Workshop, “How to avoid being scammed,” with Jay Haapala, associate state director of community engagement at AARP Minnesota. Haapala leads AARP’s Fraud Watch Network program to educate people about scams, identity theft, and consumer protections. He and AARP Fraud Fighter volunteers have met with hundreds of community groups, law enforcement officers, and fraud investigators to both learn from them and educate the public about the latest criminal trends in scamming.
Haapala has worked and served in the Minnesota non-profit sector for more than 20 years building volunteer programs. The FBI recognized his work with the AARP Fraud Watch Network by honoring him with its 2020 FBI Director’s Community Leadership Award.
Devastating consequences
Scammers reach their victims primarily through the internet—by email and text—and phone calls. Surprisingly, younger people between the ages of 18 and 39 are targeted more often by scammers than people older than 70, according to Haapala. However, older people lose a lot more money than younger people, and the consequences can be devastating in our retirement years.
Haapala encourages people to talk about scamming as a means of protecting ourselves, our families, and friends.
Please register and join us for this free Zoom webinar at 11 a.m. on Tuesday, May 13. It will be a great way to start the conversation!
—Barbara Shiels, UMRA Program Committee
Upcoming Events
The theme for December is historical family photos. Join us for photography and fun.
There are a few fun events coming up at the Campus Club that are open to everyone. See these events on the Campus Club Facebook and Instagram.
Meeting to plan books for next year.
There has been a lot in the news recently about the University of Minnesota Medical School, University of Minnesota Physicians, and Fairview Health Services. Please join us at breakfast on January 8 for a respectful and engaging discussion of their relationship.
The theme for January is great MN views.
Developing a sense of identity is a central psychological task of the lifespan. Memories and stories from our personal past, as well as cultural memories and stories in society play key roles in how we develop our identities. This presentation will discuss psychological theory and research on how memories and stories make us who we are.
When you are of Icelandic descent you can trace your ancestors back to around 1200 and sometimes further.
Bleak House by Charles Dickens.
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UMRA’s special event for this winter will again be a celebration of brighter days and the approaching end of winter. We’ll have food, fellowship, and music provided by Urban Sound, one of the University’s premier student a cappella ensembles.
Family history with Jim Kurle. A tale of Swedish emigration to Dunn County, North Dakota, including my grandfather whose unusual relationship to several churches and religion in general was one of the reasons for his emigrating.
Growing Up by Russell Baker.