From rotary phones to smartphones, the world has changed greatly, and you’ve adapted at every turn. But today, a new challenge has emerged: scammers. In fact, the FBI reports that seniors lose more than $3 billion every year to fraud.
Here are some key tips to help you spot scams and safeguard your finances.
Why Do Scammers Target Seniors?
Scammers often target older adults for several reasons:
- Seniors tend to be more trusting of others.
- They often have significant savings or valuable assets.
- Many are less familiar with evolving technology and online threats.
- Physical or cognitive impairments may affect decision-making.
- Some hesitate to report scams, fearing it could lead to a loss of independence.
Different types of scams
It’s important to understand what you’re up against so you can be prepared in case you are targeted. Here are some of the most common scams targeting seniors today.
Grandparent Scams
Perpetrators pretend to be a distressed grandchild, requesting urgent financial help. They often claim to be in trouble, such as being in jail, stuck overseas, or in a hospital, and beg the grandparent not to tell anyone. The scam relies on emotional manipulation and a sense of urgency to push seniors into sending money without verifying the story.
We recommend talking to your family and have a question you can ask that only your family members will know the answer to, or even a “code word”, to confirm who you are talking to.
Medicare and Health Insurance Fraud
Some scammers go door-to-door offering fake DNA tests and other phony medical services. They collect personal information under the pretense of testing, then use it to fraudulently bill Medicare, keeping the profits while putting your identity at risk.
Sweepstakes and Lottery Scams
Fraudsters call or message claiming you have won a huge prize. However, there is a catch. To claim it, they say, you need to pay taxes or processing fees upfront.
Even former FBI Director William Webster was targeted in 2014. He and his wife were told they had won $72 million and a new Mercedes-Benz, but needed to pay $50,000 first. They recognized the trick and reported it.
Home Improvement and Repair Fraud
Scammers often pose as contractors, offering low-cost repairs or home improvements. But once they’re paid, they either deliver poor-quality work or vanish entirely without completing the job.
Romance Scams
These scams often start on dating sites or social media platforms. Fraudsters set up fake profiles to build trust and form emotional connections. Eventually, they ask for money with false stories of emergencies or hardship.
Government Impersonation Scams
Scammers pose as officials from government agencies, such as the IRS or Social Security. They may threaten fines, demand personal information, or claim you are entitled to benefits, anything to get access to your private data or money.
How to Recognize a Potential Senior Scam
Scammers are getting more sophisticated, but there are still clear warning signs you can watch for:
- They contact seniors out of the blue. They rely on cold calls to find their victims. If you are not expecting a message or call, it is good to approach what the caller is saying with caution.
- The person you are talking to is not able to provide proof of identity.
- They request sensitive personal documents or information, such as card number or bank account details.
- Text messages or emails contain spelling mistakes, blurry logos, and other inconsistencies can indicate a fake text message or email.
- You win a contest you never entered.
- You are asked to keep secrets. A scammer might ask you not to tell anyone—like a fake grandchild saying, "Don't tell Mom and Dad," or a romance scammer telling you to hide your relationship. That's a major red flag. Scammers count on your silence to succeed.
- High-pressure tactics. Scammers want you to act fast. They may use scare tactics or claim you'll miss out on a deal if you don't act immediately.
How to Prevent Senior Scams
There is plenty that you can do to avoid scams from happening to you or your elderly relatives:
- Stay informed. Learn the latest scam tactics, as scammers constantly change up their tactics.
- Protect personal details. Never share your personal details, such as your bank or SSN details.
- Use secure networks. Make sure you are on a secure Wi-Fi network when accessing your financial accounts online.
- Verify contacts. Always double-check the identity of anyone claiming to represent a company or government agency. Use phone numbers from official websites, not what they give you.
- Be wary of online relationships. Be careful of someone you have just met online who quickly declares love or insists on keeping your relationship a secret.
- Consult trusted family members. Before making any financial decision or executing any large payment, discuss it with a trusted family member or friend.
- Stay skeptical. Always be wary of offers that seem too good to be true, like huge sums of money for little to no investment.
What To Do If You're Scammed
Finding out that you have fallen victim to a scam can be stressful, but taking swift action can help minimize the damage. Here are some of the steps you can take:
- Report the incident. Inform the local police about the fraud. This can avoid further damage and possibly help catch the scammer.
- Notify your bank. Inform the affected financial institutions to put a hold on accounts and stop any unauthorized transactions.
- Contact credit bureaus. Request a credit freeze on your credit score to protect yourself against identity theft.
- Change account information. Update security questions and passwords for online accounts that might have been compromised.
- Keep a record of emails, scam messages, and phone conversations for documentation purposes. The more proof you have of the scam, the better.
- Seek support. Contact organizations that provide advice and support for scam victims.
Staying alert and informed is your best defense. By recognizing the warning signs and taking proactive steps, you can protect yourself from falling victim to these increasingly sophisticated scams.