Common Elderly Fraud Schemes and How to Avoid Them

Scams are on the rise, and fraudsters continue to find new ways to target vulnerable individuals. Roughly 50% of reported fraud cases come from people 65 and older, particularly retirees.

Scammers frequently target older individuals based on their assumption that seniors have accumulated wealth. They also operate on the belief that seniors are more isolated and less familiar with current technology and scam tactics.

Types of Scams That Target the Elderly

Investment scam: A scammer contacts your senior over the phone or online promising investment opportunities with high returns and little risk.

Funeral scam: Individuals pretend to work for funeral homes to get seniors to pay for a funeral ahead of time, often pressuring them to choose the most expensive options and services.

Tech support scam: Your loved one may receive a call, text, email or pop-up message on their computer warning them of a technical issue. Typically, they receive a fake number to call so a hacker can gain access to their computer, steal information or download malware.

Grandparent scam: A scammer poses as a grandchild, relative or friend in distress, pretending to be stranded, in an accident or in jail to acquire funds quickly.

Romance scam: Fraudsters create fake dating and online profiles to build trust and develop relationships by requesting money to pay for an emergency, buy a ticket or help a friend. Once they receive the funds, they usually delete the profile.

Government impersonation/Medicare scam: Often done over the phone, someone pretending to work for a government agency contacts your senior in an attempt to convince them to pay for a non-existent issue. A scammer may ask for their Medicare information, personal details or Social Security number.

Charity scam: This type of scam is common following a natural disaster or war. An individual claiming to be from a real or fake charity requests urgent donations.

Lottery/sweepstakes scam: Your loved one may be lured into paying a “processing fee” to receive a prize, sweepstakes or money.

Reverse mortgage scam: A reverse mortgage allows homeowners to access home equity based on the difference between the current market value of their home and their mortgage balance. Scam artists claim to be able to provide a reverse mortgage so they can steal the equity.

Robocallers: Phone scammers use pressure to encourage seniors to act quickly and send money via wire or app transfer or even mailing funds. They can even take your loved one’s voice signature to authorize fraudulent charges.

Warning Signs of Fraud and Scams

Beware the following tactics and behaviors employed by scammers:

• Unsolicited contact via call, text, email, social media or mail
• A sense of urgency or fear
• Pressure to act quickly
• Requesting personal information, like Social Security number, bank accounts and address
• Unusual payment methods, such as gift cards and cryptocurrency
• Poor grammar and spelling on websites and in emails
• Refusal to answer questions
• Pressure to not involve family, friends and financial institutions

Role of Technology in Elderly Fraud Schemes

Aside from tech support scams, fraudsters employ a variety of methods to con seniors out of information. Phishing is one of the most common types of online fraud. A scammer or hacker impersonates a legitimate organization via text or email, providing a link or attachment that contains malware.

Online shopping also presents fraudulent opportunities. Seniors may encounter fake online stores or listings on platforms such as Facebook Marketplace or eBay that offer low prices. Scammers can steal payment information or provide an item of lesser value.

How Seniors Can Protect Themselves from Fraud

Here are some tips to help seniors protect themselves against scams:

• Be skeptical. If something sounds too good to be true, it usually is.
• Don’t share sensitive information unless you’re sure of the validity of a website, app or individual.
• Use secure payment methods that offer fraud protection features.
• Hang up on unsolicited calls and block the number.
• Create strong passwords for personal accounts, and don’t reuse them.
• Don’t make rushed decisions.
• Contact family, friends and financial institutions to verify claims.
• Don’t open emails from unknown senders or click suspicious links.
• Install security software.
• Enable two-factor authentication on online accounts.

Raising Awareness About Elderly Fraud

Discussing potential fraud with your loved one can help them stay vigilant and protect their personal information and assets. Embarrassment may prevent your senior from addressing a scam, so encourage your loved one to be honest about financial matters and suspicious activity.

If your loved one suspects they’re a victim of fraud, report it to the police as soon as possible. They should also notify their financial institution to protect their accounts. You can file a fraud claim with the Federal Trade Commission online or call 1-800-382-4357.

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