Scammers target seniors every day, assuming that they have money and are vulnerable to scam tactics. Many common scams are used but if you are armed with knowledge you can recognize and avoid them.
Here you’ll learn about common scams, why seniors are targeted, and some tips on how to protect your valuable assets. You’ll also find ways to report scams so that authorities can stop these criminals.
It’s an unfortunate reality that scammers target millions of people, and that many of those people are seniors. Technology has opened many doors for these criminals, allowing them to create new and better scams every day. However, with some knowledge and awareness, you can protect yourself and your money from scammers and perhaps help to stop them from scamming others.
Common Financial Scams Targeting Seniors
While the types of scams targeting seniors are many, five are the most common.
Government Related Scams
In 2022, according to the ICS which is a scam complaint system created by the FBI, people over 60 lost over $724 million to government impersonation scams and tech support scams.
In government impersonation scams, impostors call seniors and state that they are from the IRS, Social Security Administration (SSA), or Medicare. Calls purporting to be from the IRS tell the seniors that they owe unpaid taxes and threaten arrest or deportation if the money is not paid. Calls that state they are from the SSA or Medicare request personal information necessary to continue benefits. The personal information can then be used for identity theft.
These scammers can even use technology to make the numbers they call from look like government phone numbers.
Tech Support Scams
In tech support scams, a message will appear on the senior’s phone or computer saying that the device is damaged. The message contains a supposed support phone number, and when the victim calls, they will either be asked for remote access to their device or a fee to fix the device.
Sweepstakes and Lottery Scams
In this type of scam, seniors receive calls telling them that they won a sweepstakes or lottery, but that they must pay taxes and processing fees. They have to send money, cash or gift cards in a certain amount before they receive their prize. The scammers often use the name of a well-known sweepstakes company such as Publishers Clearinghouse to make it seem real. If the victim sends money, the scammers may continue to call saying that more money is required.
Robocalls and Phone Scams
These calls are made with several different scam angles. One claims that a warranty, such as a home or car warranty, is expiring and that a payment is needed to keep it in effect. Another type claims that it is the government or police calling about an impending lawsuit. The victim must pay a fine or be sued or arrested.
One that is less easy to recognize is a robocall that says “can you hear me”. When the victim says yes, their voice is recorded. That recording can later be used as a voice signature to authorize electronic payment or charges on stolen credit card numbers.
Grandparent Scams
Grandparent scams are particularly heartless. The caller says something along the lines of “Hi grandpa, do you know who this is”, prompting the victim to say the name of one of their grandchildren. The fake grandchild then asks for money for an emergency or other financial need. They may request it in the form of a money transfer or gift card, and ask the “grandparent” to keep the payment a secret from other family members.
These caller may also say that they are a police officer or someone else trying to help a grandchild with some sort of trouble, such as legal trouble, and ask for money to remedy the situation for the grandchild.
Why Seniors Are Targeted by Scammers
It’s a sad state of affairs that heartless scammers target vulnerable seniors, trying to take money that they’ve worked for their entire lives. They do so for a few reasons, but mainly because they believe that older people have money saved or are more financially stable.
They also believe that seniors are less familiar with technology, may have less cognitive ability than younger people, and are more trusting. They also assume that seniors are less likely to report suspected fraud.
The bottom line is that seniors are targets for scammers and that this targeting is increasing. In 2023, according to an IC3 report, scam complaints from those over 60 increased by 14% from 2022, and the associated financial losses increased by 11%.
Practical Tips for Scam Prevention
You can prevent scammers from succeeding by following some practical tips.
- Never send money to someone you don’t know, whether they contact you in person, over the phone, by email, or by social posts or messaging. In particular, be suspicious of anyone who wants you to give money by gift card.
- Don’t give your sensitive information like your social security number or Medicare number, as well as bank account and credit card numbers or PIN numbers.
- Keep your security protections on your phone and computer up to date.
- Check all your bills for unauthorized charges.
- Be cautious of anyone who tries to scare or pressure you, such as someone threatening you with arrest or a lawsuit.
In general, just be aware that scammers are out there, and don’t act impulsively.
What to Do if You Suspect a Scam
If you suspect a scam, you can do several things to report it.
- Contact the National Elder Fraud Hotline at 833–372–8311
- Contact your state’s attorney general
- Call your local police department
- Report the scam to the federal trade commission
As an accomplished marketing leader, I have successfully built impactful functions in diverse industries. During my career, I have translated complex systems into clear and actionable initiatives that drive growth and revenue. With a deep-seated passion for success, I foster cross-functional collaboration by leveraging my strong relationship-building and communication skills.
