Common Scams Targeting Older Adults

We've all heard the stories: an older adult answers the phone, hears an urgent request or an exciting reward and before they know it, their savings are gone. By understanding the most common scams targeting older adults, you can help better protect your loved ones and yourself from fraudsters.

Scammers usually target seniors because they may assume older adults have built up substantial savings or own their homes outright. They also tend to believe that seniors are more trusting and less tech-savvy than younger generations. Whatever the rationale, the goal is always to steal their money, personal information, or both.

The good news is that education can help prevent a lot of emotional stress and financial loss!

Phone Scams

Impersonation of Government Agencies

Setting the Scene: Someone calls claiming to be from the Internal Revenue Service, Social Security Administration, or a financial institution, insisting you or owe taxes or have committed a crime. They threaten arrest, fines, or legal action if an immediate payment isn't made, often demanding it through unusual methods like prepaid gift cards or wire transfers.

Government agencies can be intimidating, and scammers rely on your fear to influence hasty reactions. The idea of jail time or steep financial or legal penalties might cause a lapse of judgement. Proactive steps you and your older loved ones can take to avoid an emotionally charged reaction to these calls include:

• Remembering that legitimate agencies DO NOT call demanding instant payment. They almost always communicate by mail, and legitimate payment requests never require gift cards, wire transfers, or cryptocurrency.
• Hanging up and looking up the official phone number to call the agency directly can help verify a call's claim.

Grandparent Scams

Setting the Scene: A distressed "grandchild" calls late at night claiming they've been arrested, hospitalized, or stranded. They beg you not to tell anyone, especially that child’s parents, and tell you them need money sent immediately for bail, medical bills, or travel expenses.

This scam plays on a person’s empathy, emotions, and the strong family bond seniors often have with their grandchildren. The sense of urgency and secrecy push the victim to act fast. Best practices to avoid falling victim to this type of scam include:

• Warn older loved ones about this scam ahead of time and discuss what an emergency would actually look like for your family.
• Remind them to stop and verify by calling the grandchild's known phone number (or another family member) rather than sending money on the spot.

Lotteries and Sweepstakes

Setting the Scene: An older adult receives a call or letter proclaiming they've "won" a massive prize like a lottery or a sweepstakes. To claim the winnings, they're instructed to pay a processing fee or taxes upfront.

These scams tap into the excitement of winning and exploit the desire to believe in good fortune. The desire for financial security in later years can also override a person’s suspicion that this may be too good to be true. Protective steps to take include:

• Encourage your loved ones to never pay fees or taxes to claim a prize.
• If a call feels suspicious, hang up and verify the organization through an official website or phone number.

Tech Support or Computer Repair

Setting the Scene: You are contacted by someone posing as reputable tech support personnel or major software company. They allege your computer is infected with viruses or is compromised. Then they ask for remote access, install malicious software, and steal sensitive data or charge inflated fees for "repair" services.

It’s common for older adults to not feel entirely comfortable with digital technology, so they may be more inclined to accept help from someone who seems knowledgeable and trustworthy. Important steps to prevent this type of scam include:

• Stress the importance of refusing remote access unless it's a confirmed and reputable tech service that they reached out to first.
• Help set up antivirus and anti-malware software beforehand so your parents feel confident in their existing digital protection.

Charitable Support

Setting the Scene: You receive a phone call, email, or door-to-door visit from someone claiming to collect donations for a disaster relief effort, a veteran's fund, or a children's hospital. You might think you are supporting a worthy cause, but in reality, these funds might be going straight into a scammer’s pockets.

These scams play on an individual’s empathy and generosity and rely on a person’s trust in charitable organization without verifying its legitimacy. Protective steps to fight this type of scam include:

• Using websites like Charity Navigator or Guidestar to check if a charity is legitimate before donating.
• Suggesting to an older loved one to avoid donating on the spot and instead request written information allows them to make an informed decision later.

Email, Online, and Social Media Scams

Phishing Emails and Texts

Setting the Scene: A fraudulent email or text appears to come from your bank, credit union, or credit card company. The message might ask for banking account login details, card numbers, or even Social Security numbers. A misleading website link might even make it easier to provide your personal and sensitive details to a fraudster.

Older adults might assume it's an official request from a reliable organization, especially if the branding looks authentic. The email's tone will often express urgency, like "Your account will be closed if you don't respond immediately!" Protective steps that you can take to remain vigilant include:

• Never provide sensitive data via email or text, especially financial information.
• Advise your older loved ones to never click on links in unexpected emails or texts.
• Encourage them to type the official website URL into the browser rather than click embedded links.

Social Media Impersonation

Setting the Scene: You receive a friend request or message from someone claiming to be a distant relative, new friend, or a representative of a reliable organization. By accepting this request, this account has access to your personal posts, in which they are gradually extracting personal information from. They also might try to request this information or even solicit money from you through direct messaging.

On social media, it's easy to mistake a fake profile for a real friend or family member. Scammers can build trust over days or weeks before making their move. Some proactive steps to take include:

• Encouraging your older loved ones to verify the authenticity of new friend requests by calling the real person directly or verifying through mutual contacts.
• Remind them to never to share personal data, like their address or banking details, through any social platforms.

Online Shopping and Auction Fraud

Setting the Scene: Someone advertises an unbelievable deal for an appealing product on an auction site or online marketplace. After paying, the item is never delivered or arrives in very poor condition. The seller disappears, leaving no way to get a refund for this purchase.

The excitement of a good deal can lead to impulse buying, and seniors might not know how to navigate buyer protections or dispute processes effectively. Some proactive steps to take with your older loved ones include:

• Advising them to only shop on known, reputable websites with clear return and buyer-protection policies.
• If an offer seems too good to be true, it probably is. Skepticism can help keep their finances safe!

Romance Scams and Emotional Manipulation

Online Dating Platforms

Setting the Scene: You come across a sympathetic or charming profile, and conversation turns into a whirlwind online romance. Eventually, they request money for travel, medical emergencies, or other fabricated crises, promising to repay or meet soon.

Loneliness can create vulnerability. The attention, compliments, and "shared dreams" can feel like a lifeline that can prey on this misplaced trust. Proactive steps to take to help fight this scam practice include:

• Cautioning older adults to avoid sending money to someone they haven't met face-to-face.
• Encouraging them to talk to you or a trusted friend if a new love interest asks for financial help of any kind.

Personal Data Exploitation

Medical Identity Theft

Setting the Scene: Your older loved one learns their medical insurance or Medicare information has been used by a scammer to receive treatments, prescription drugs, or submit false claims. The victim only learns about it when legitimate care is denied or they see unfamiliar charges on billing statements.

People often ignore or don't scrutinize medical bills or Explanation of Benefits (EOB) documents closely. By the time they notice, the fraud might be extensive. Best practices to help stop this type of fraud in its tracks include:

• Reviewing the EOB statements line by line to ensure all charges are made by the policy holder.
• If something seems off, call the insurer or Medicare directly.

Unauthorized Account Use

Setting the Scene: A loved one notices unauthorized charges and missing funds from their bank account. When looking into their financial statements, they might even learn of new lines of credit opened in their name but without their knowledge. A scammer has likely obtained their banking or credit card information, possibly through phishing, hacking, or dumpster diving for old statements.

Small, repeated transactions can go unnoticed if financial statements aren’t checked regularly. Fraudsters bank on complacency or confusion around modern banking apps. Financial tools and resources that can help catch scammers in the act include:

• Setting up transaction alerts for larger withdrawals or unusual spending.
• Encouraging parents to freeze their credit if they aren’t planning to open new credit lines.

The Takeaway

Scammers are persistent, but knowledge is a powerful defense! By getting familiar with the most common schemes, you can educate yourself, your parents, and older loved ones how to respond with caution and logic rather than panic and emotion.

Remember that the goal isn't to become fearful or suspicious of everyone. Instead, you want to foster a healthy skepticism and create a mindset where they feel comfortable pausing, asking questions, and seeking second opinions. Sometimes a simple hesitation, like "Let me check with my daughter first," is enough to scare off a scammer!