Fraudsters regularly take advantage of older adults as targets due to their supposed stable finances, trusting nature, and occasional unfamiliarity with modern technologies.
A recent report from the FBI indicates that over 101,000 Americans aged 60 and above fell victim to digital fraud in the past year, with the average loss per individual amounting to $33,915.
Scammers’ methods are increasingly sophisticated. In most cases, they take advantage of urgency, fear, or promises to make their victims act without due consideration. Read on for 15 scams preying on seniors and how to avoid them!
The Grandparent Scam
The perpetrators impersonate grandchildren or other relatives, asserting they require immediate financial assistance due to an emergency. They may tell of being arrested, involved in an accident, or held up in another country.
According to the most recent numbers for 2022 from Elder Abuse Prevention Ontario, about $10 million was lost through these so-called ‘grandparent scams’ in Canada. However, the actual number of cases is probably still higher, as embarrassment often prohibits many from filing reports.
The scammer typically asks for the money to be wired or sent in gift cards so they cannot be traced. The FTC reports that this scam costs seniors millions every year. Always verify the situation with the family member, and do not send money without confirming the story.
Fake Charities
Many fraudsters take advantage of the generosity of seniors by pretending to represent a charity. They may call or send fraudulent emails claiming to raise funds for causes like cancer research, veterans, or disaster relief. These fraudsters prey on emotional appeals to convince seniors to get personal information and donate money to fake causes.
“Scammers move quickly and use these events to try taking advantage of the public’s generosity, stealing not just money, but personal information that can lead to identity theft,” said IRS Commissioner Danny Werfel.
The Better Business Bureau suggests that before donating, one should check if the charity is registered with local authorities. Seniors should also be wary of unsolicited requests and make sure their donations go to legitimate organizations.
Medicare and Health Insurance Scams
Medicare scams are a major concern for seniors. Several scams target seniors and involve the impersonation of Medicare representatives who call to obtain their sensitive information, including their Medicare or Social Security numbers
According to Bitdefender, thousands of people are victimized by Medicare scam calls every year, threatening their personal security and financial health. This is because calls from it might be tricky to distinguish genuine Medicare providers from scammers.
They give free “medicational” equipment, discounted prices, or even promise them enrollment in low-price programs. The Centers for Medicare and Medicaid Services (CMS) suggests that seniors must be cautious of phone calls pitching such deals and report suspicious activities.
Phishing Emails
It is the most common cybercrime; around 3.4 billion spam emails are received daily. Scammers send emails that appear to be from legitimate companies or government agencies and ask for personal information.
These fraudulent emails often contain links or attachments that, if clicked, can install malware on the senior’s device or steal sensitive information. According to AARP, phishing emails can be tricky to identify, but they usually include grammatical errors and a sense of urgency.
Seniors should not click on links or open attachments from unknown senders and use anti-virus software to protect their devices.
Home Repair Scams
Home improvement scams commonly affect seniors who may have maintenance or repair needs. The National Council on Aging estimates that about one in ten Americans has been a victim of a contractor scam.
Fraudsters may offer their services, claiming to fix a small issue or perform necessary repairs. They frequently solicit an upfront deposit and vanish without working an ounce. The Federal Trade Commission recommends obtaining written estimates from more than one contractor and checking references before engaging in business with any of them.
Investment Fraud
Many fraudsters target seniors with phony investment opportunities that promise big returns with little risk. Scammers may pitch “too-good-to-be-true” schemes involving phony stocks, bonds, or real estate deals. USSC reported that 91.5% of individuals sentenced for securities and investment fraud were men.
Federal Trade Commission says consumers reported losing more money to investment scams—more than $4.6 billion—than any other category in 2023.
The U.S. Securities and Exchange Commission warns that fraudsters may push seniors to invest without doing their homework or may have them sign phony documents. Before investing, seniors should check with a financial advisor or with the state regulators to see whether the firm is registered.
Lottery and Prize Scams
Lottery scams tell seniors they have won a prize or lottery but must pay taxes, fees, or shipping charges before receiving their winnings. These scams often sound too good to be true, but the perpetrators go to great lengths to make their stories convincing.
The FTC reports that scammers typically ask for payment in gift cards, wire transfers, or cryptocurrency. Seniors should be wary of any unsolicited message that informs them they have won something and must pay a fee up front to receive it.
Romance Scams
Romance scams play on emotional vulnerability, especially among seniors who are lonely or seeking companionship. Scammers often meet their victims through dating websites or social media.
After establishing an online relationship, they ask for money, usually due to an emergency. The FBI has reported that romance scams have resulted in significant financial losses for older adults.
It’s important to be cautious about those who declare their love for a person quickly and then request money, especially if they will not meet the person in person.
Tech Support Scams
This scam involves fraudsters pretending to be tech support agents for reputable companies, like Microsoft or Apple, and telling seniors that their computers have viruses or security problems. The scammers ask for remote access to the device or for a fee to fix the supposed issue.
In fact, according to the FBI’s 2023 Internet Crime Report, over 37,500 complaints of fraudulent tech-support schemes were filed in the United States alone last year, accounting for over $924 million in losses.
Tech support scams have been reported as one of the most common phone scams targeting seniors. Always hang up on unsolicited calls and contact the tech company directly using a verified phone number.
Prize or Gift Card Scams
These scams call seniors or leave messages indicating they have won something. Still, to obtain it, they must pay an initial fee or purchase gift cards and then provide the scammer with the card information.
These scams take advantage of seniors’ excitement and trustworthiness. The BBB recommends that seniors never pay for a prize or award before receiving it and report any suspicious offers.
Debt Relief and Loan Scams
Some scammers prey on seniors’ financial concerns, offering “debt relief” services that promise to erase or reduce debts in exchange for an upfront fee. Others may offer loans with lower rates but require an advance fee before releasing funds.
The BBB reported that it received 12,700 complaints and negative reviews of debt consolidation, debt relief, and credit repair companies, with $2.4 million reported lost to related scams between 2020 and 2023.
The Consumer Financial Protection Bureau warns that such scams are rampant, particularly targeting seniors in financial distress. To avoid this, seniors should check the credentials of any company offering to help with debt settlement or other debt relief services.
Free Trial Offers and Subscription Traps
Scammers advertise “free trials” for everything from vitamins to cosmetics to website access. While the initial offer may be free, the scammer will typically ask for credit card information and continue to bill monthly after the trial period expires.
According to the Federal Trade Commission (FTC), most businesses make it difficult for seniors to cancel these subscriptions. Seniors should carefully read the terms of any free trial and check their bank statements for surprise charges.
Unsolicited Sweepstakes or Contest Entries
Unsolicited sweepstakes or contest offers take advantage of seniors, who are often unfamiliar with the potential risks. These scams generally involve seniors being informed that they have won some sort of large prize, but that they must pay a processing fee or provide sensitive information to receive their prize.
According to the AARP, any contest or sweepstakes that requires an upfront payment is likely a scam. Seniors should always be wary of unsolicited offers that require personal information or money up front in order to claim a prize.
Pyramid Schemes and Multi-Level Marketing (MLM) Scams
Pyramid schemes and MLM scams are usually presented as very attractive, offering high returns from either the sale of products or by recruiting others. In these schemes, the emphasis is on recruitment rather than selling actual products, making them unsustainable in the long term.
Action Fraud data shows that more than £450 million has been lost in the UK to Pyramid and Ponzi schemes in the last three years, with £58.5 million lost in the past year.
The Federal Trade Commission has cracked down on several MLMs that prey on older adults by asking them to make large purchases to join. Seniors should avoid any program emphasizing recruitment over product sales and thoroughly research the company.
Bank Account or Social Security Scams
These scams involve fraudsters pretending to be government officials or a bank representative and threatening the senior that there is a problem with their account or Social Security number. The FTC says that 3.4 percent of people who report the Social Security scam report losing money.
SSA’s most recent data indicates that individuals between the ages of 70 and 84 report the most significant losses, an average of nearly $12,000. They may threaten legal action or financial penalties if the senior does not provide sensitive information immediately.
The SSA warns that it never contacts individuals through email or texting, and it never asks for sensitive personal information. Seniors should verify any communication by contacting their bank or the SSA before sharing any details.
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