Scammers make big money preying on vulnerable populations, and their schemes impacting older adults are on the rise. In fact, the FBI estimates that in 2023 alone, Americans aged 60 and older lost more than $3.4 billion as a result of elder fraud, representing an increase of 11% over the previous year.
For numerous reasons, older adults make easy targets for criminals. Learning more about those risk factors and how to spot common scams is an important step toward fraud prevention for seniors. Knowing what to do if you suspect you’re a victim of fraud and how you can safeguard your assets will help protect the financial future you (or your loved one) worked hard to secure.
What makes seniors easy targets for fraud and scams?
At retirement, older adults have a lifetime of assets and fewer financial obligations. Hard-earned retirement funds — even a moderate retirement savings account — can be enticing to a thief who perceives a potential windfall.
What’s more, many of the natural circumstances of aging put older adults at elevated risk for exploitation. For example, cognitive decline is common among seniors and can grow more pronounced with age or health conditions, including those that affect blood and oxygen flow to the brain. That alone can affect the way a person evaluates and understands information, leading to poor decisions with money and other assets.
Another lifestyle factor that can influence seniors’ risk of fraud is social isolation. Loneliness can make attention, even from a stranger, very appealing. Savvy fraudsters know how to manipulate the emotions of lonely individuals eager for a sense of connection. They fabricate a social connection that breeds a false sense of security and trust before they strike.
Scammers have another distinct advantage over the current generation of seniors, which has less experience with digital technology than those who have never known life without computers, cell phones and smart devices. Fraudsters count on that unfamiliarity, although it’s worth noting that some researchers believe Boomers’ skepticism of the digital world actually works in their favor; they’re actually less likely than Gen Z to fall for online scams.
One factor in that research is a willingness to report fraud. Seniors may be more reluctant to let anyone know when they’re a victim of a scam. That may be partly due to embarrassment or self-recrimination, but they may also worry that it could affect their independence.
(H2) What are some common scams targeting seniors?
Recently, the National Council on Aging shared data on the top five most common scams targeting seniors, based on complaints filed with the U.S. Senate Special Committee on Aging Fraud Hotline. These scams, which generally attempt to collect personal information that can be used to commit identity theft or to collect some form of direct payment, include:
Grandparent to the rescue: A fraudulent caller tricks the target into believing their grandchild is calling and needs urgent financial help for some sort of emergency, often asking for secrecy. In a variation of this scam, the caller may pose as an authority figure or emergency personnel asking for money to help a grandchild. Artificial intelligence (AI) voice distortion can make it very difficult to tell that the call is fake, and because the request is often in untraceable funds such as gift cards or wire transfers, it can be very difficult, if not outright impossible, to reclaim lost money.
Financial services: A professional and seemingly legitimate message in the form of an email, text or phone call conveys that an account has been compromised, a bill is past due, a better rate is available on a loan or a similar plausible scenario. None of the claims is true, but the context can be very convincing, and the approach can be aggressive enough that the victim is scared into participating by providing personal information to “verify” the account and/or making a payment.
Tech support: Particularly problematic for seniors who aren’t comfortable with technology such as computers and phones, these scams capitalize on what the user doesn’t know. A device screen goes blank, and a “support” number appears. The fake support representative will attempt to access the device (including the potentially sensitive personal information it contains) or demand money in order to repair the device, which isn’t actually broken. (Often, forcing a reboot or turning off and restarting the device will remove the issue.)
Government imposter: Supposedly originating from a government office such as the Internal Revenue Service or Social Security Administration, these calls threaten legal penalties or cancelled benefits. The target is compelled to divulge personal information or send money in order to avoid jail time, fines or worse.
Romance gone wrong: Online dating is common among all age groups, including seniors who may find it difficult to meet potential partners. Using fake profiles, scammers gain the trust of a new love interest, then begin soliciting money for emergency medical expenses, living expenses, a trip to meet in person or other similar requests.
What should you do if you think you might be a victim of financial fraud?
Taking quick action is your best course of action if you think you’ve been targeted as part of a senior scam.
Contact your financial institution. If you believe a particular card or account has been jeopardized, contact the fraud department for that account immediately. They can place a temporary hold or cancel access to the account and transfer you to a new one.
Alert the credit bureaus. A scam can put a serious dent in your good credit, so if you think you’ve been the victim of a financial scam, alerting the credit bureaus is a smart move. It may help mitigate any dings to your credit, but it will also result in closer scrutiny so you get alerts about any new accounts that may open under your name.
Notify the authorities. Protecting yourself and recovering your losses will be an easier path with the support of law enforcement. Filing a report will help when you dispute fraudulent transactions or attempt to claim losses through your insurance company. Reporting the crime will also help protect future victims and make it more likely to bring a criminal to justice.
How can you protect yourself from senior scams?
While the possibility of falling prey to a con artist is worrisome, there are many options for protecting seniors from scams.
Install software to protect your private information. Antivirus programs are an essential tool in fraud prevention for seniors. They help filter out emails that appear to contain fraudulent content, such as malware, spyware and phishing requests. Many antivirus software programs also run regular scans and alert you to potential threats affecting your privacy and personal information.
Learn how to stay safe online. If you don’t feel confident online, taking a class geared toward seniors can be very helpful. It will teach you how to create and store passwords that protect your accounts, what to look for before clicking through an email from someone you don’t know, what you need to know before shopping online and how to reduce your risk of identity theft.
Keep tabs on your finances. Whether it’s you, a trusted loved one or a professional advisor, ensure someone is regularly monitoring your accounts so you are aware immediately of any potentially fraudulent activity. Reporting suspicious transactions early can minimize your losses. Similarly, keep an eye on your credit report, since it will provide a list of credit lines, loans and accounts in your name; if you find anything unfamiliar, you can take quick action.
Rely on community support. Assisted living communities, like Canterbury Court, implement measures that facilitate fraud prevention for seniors. For example, they may offer classes about interacting online and identity theft. They also build personal relationships with residents, so they’re aware of unusual activity that could signal that someone is the victim of a scam artist. They’re also able to provide resources to guide the resident through the reporting and recovery process.