In recent years, fraudsters have increasingly targeted senior citizens with sophisticated scams. In fact, the amount of elder fraud reported to the FBI in 2023 increased by 14% from the previous year. These elderly scams can be detrimental. Americans over the age of 60 lost a total of $3.4 billion to senior scams in 2023, making the average loss per victim a staggering $33,915, according to the FBI’s Internet Crime Complaint Center (IC3) 2023 Elder Fraud Report.
Needless to say, it’s more important than ever to understand these scams and recognize their deceptive practices. We’ll explain how the most common elder scams work, teach you how to identify them, and list the steps to take if you encounter one.
Common Scams Targeting Seniors
Scammers often prey on older people because they tend to be more trusting, may have substantial savings, and sometimes struggle with new technology or cognitive decline. Understanding how elder scams are often perpetrated can help protect you or your loved ones from becoming their next victims.
Medicare and Health Insurance Scams
In health insurance scams, fraudsters will pose as Medicare representatives or other providers to collect personal information or money from seniors. They might offer fake medical equipment, unnecessary tests, or counterfeit prescription medications at extremely low prices. These scammers often use social engineering tactics to build trust and convince seniors to share their Medicare, bank account, or social security numbers.
Red Flags to Know
- Medicare will never call to ask for your Medicare number or other sensitive information unless you’ve given them permission in advance.
- Watch out for unsolicited calls about medical equipment or services you didn’t request.
- Be wary of offers for free medical supplies or services in exchange for your Medicare number.
- You can report Medicare fraud on the organization’s official website and learn more about recent scams and how to best protect yourself.
Grandparent Scam
Grandparent scams — also called grandkid or family scams — are a type of imposter scam that focuses on emotional manipulation. Scammers call seniors pretending to be their grandchild. They’ll claim that they’re in distress or are experiencing some kind of emergency that requires immediate financial assistance. They may say they’ve been in a car accident, are in jail, are stranded in a foreign country, or are in a hospital. This contrived urgency is a deliberate method to induce a panic and cloud judgment, making the senior more likely to try to help.
Red Flags to Know
The lynchpin of this scam is to convince the victim that the scammer is a family member. If they’ve done their research, they may already know personal details about your family from social media. If they don’t, they may try to lure names out of the victim by calling and saying, “Hey, Grandpa! Guess who?” Remember to never give private information out on unsolicited incoming calls, including first names, and encourage all members of your family to make their social media accounts private.
Furthermore, the caller may insist on keeping the conversation secret from other family members. Naturally, if the grandparent tries to call another family member, it could expose the fraud. Any sign of secrecy should be a cause for concern.
Lastly, the scammer may claim that the emergency requires immediate wire transfers or gift cards. Both of these are easy ways for the fraudster to drain accounts and then vanish. Account numbers and gift card numbers should never be given over the phone, and never use a payment app at the behest of a caller if they aren’t already an established contact.
Tech Support Scams
Scammers use pop-up messages, phone calls, or emails claiming to be from well-known tech companies in order to spook senior citizens and get them to part with sensitive data. They’ll often warn about nonexistent computer problems or security breaches and may even offer to fix them for free.
Remember, scammers may not ask for financial information directly if they think they can get to it another way. In tech support scams, they may ask for remote access to your computer or use deceptive phishing techniques to get around your cybersecurity measures. Once inside, these con artists can steal personal information or install malware.
For example, a scammer could pose as the support staff of a common streaming service, like Netflix, and tell you your password will expire in 24 hours or that your monthly payment method failed. This is an attempt to get you to click on a link in an email or text message to load malware onto your device.
Red Flags to Know
- Legitimate tech companies do not make unsolicited contact about computer problems.
- Pop-up messages warning about viruses and requesting immediate action are usually fake.
- In general, any pop-up message should be distrusted, especially if they’re delivering bad news.
- Be suspicious of callers asking for remote access to your computer or requesting payment through gift cards.
- Never give personal, private, or financial information to anyone who you did not directly call.
Sweepstakes and Lottery Scams
In lottery scams, fraudsters contact seniors claiming they’ve won a prize or sweepstakes but must pay taxes, fees, or other charges to collect their winnings. This communication can be an email, text message, or phone call, and will try to get the victim to give up financial information or make a payment to an online portal. The scammers may claim this money will be reimbursed, but of course, it never is and the prize is never sent.
Red Flags to Know
- Remember, you can’t win a contest you never entered. If the lottery doesn’t sound familiar or you rarely play, it’s certainly fake.
- Although lottery winnings are automatically taxed, the taxes are taken out of the winnings, not paid by the winner beforehand.
- Legitimate lotteries never require upfront payment to collect winnings, and winners are never asked to wire money or send gift cards to claim prizes.
Investment and Retirement Scams
Retirement scams are ploys that target seniors’ savings through fake investment opportunities, pyramid schemes, or Ponzi schemes. Scammers often present themselves as financial advisors offering guaranteed returns or exclusive investment opportunities. As with all of these scams, always be wary of unsolicited communication.
Red Flags to Know
- There’s always some risk when it comes to investing. Promises of guaranteed high returns with no risk will only come from untrustworthy sources.
- Imposters will usually pressure their victims to act quickly before an opportunity expires and rattle off complex investment strategies that can’t be explained clearly.
- Never accept opportunities from unsolicited callers, and even if you or your family member initiates the conversation.
- Always ask for credentials.
- Avoid unregistered investment products or unlicensed sellers.
How To Identify Scams Targeting Seniors
Being able to recognize potential scams is your first line of defense, and our goal is to ensure you’re as protected as possible. Here are common signs to look out for that should always raise suspicion:
- Unsolicited Communication: Unexpected contact from government agencies, companies, or financial institutions should not be trusted. Never give out private or identifying information to anyone on an unknown, incoming call.
- Urgency and Scare Tactics: Fraudsters often pressure their victims to make quick decisions about money or personal information. Legitimate institutions will try to work with their customers in a calm, supportive way, even when confronting a crisis.
- Payment Requests: Gift cards, wire transfers, and cryptocurrency are all easy to send and receive with no easy way of getting them back. If someone requests this type of payment, it should raise an immediate red flag as a potential financial scam.
- Too Good To Be True: Scammers feed on both fear and excitement. If something sounds too good to be true, it probably is, especially when it comes to promises of unrealistic returns or guaranteed investment success.
- Upfront Fees: Legitimate companies only ask for payment once the job is done. Upfront taxes, fees, or payments are a clear sign that something is off.
- No Paper Trail: All good businesses have extensive records and can easily provide their terms, services, and fees in writing. Be skeptical of anyone who is reluctant to issue written information or contracts.
- Secrecy: Trustworthy companies do not do business in the dark. And in the case of grandparent scams, they’re banking on secrecy to avoid being found out. Requests to keep conversations private or secret from family members is cause for alarm.
- Poor Grammar: If an email or letter looks official but has incorrect grammar or spelling mistakes, it’s often a sign that it’s not real.
- Lack of Credentials: Medicaid representatives, investment agencies, and even family members will all be able to prove their authenticity when pressed. Anyone who hesitates shouldn’t be trusted.
What To Do if You Encounter a Scam
If you suspect you’re being targeted by a scammer, end all communication immediately. Don’t feel pressured to continue a conversation or transaction that makes you uncomfortable. Be firm, as this is not a time to worry about being polite or apologetic. Hang up the phone, exit the chat, and close your browser.
However, be sure to document everything, including caller IDs, email addresses, and the content of communications.
You can report the incident to the Federal Trade Commission (FTC) and the IC3’s Elder Fraud Complaint portal. You can also call the IC3’s Nation Elder Fraud Hotline at +1 (833) FRAUD-11 or +1 (833) 372-8311, Monday through Friday, 10:00 a.m. – 6:00 p.m. ET.
If you’ve shared financial information or sent money, contact your bank or credit card company immediately to freeze your accounts and dispute any fraudulent charges.
Find More Resources To Protect Yourself With StreamSafely
StreamSafely offers comprehensive resources to help you and your family stay protected from online scams and illegal streaming platforms. Our educational materials can help you understand the latest threats and emerging digital piracy tactics as well as the tools to detect and avoid them.
Remember, protecting yourself from scams starts with education and awareness. By staying informed about common fraud techniques and maintaining healthy skepticism toward unsolicited offers, you can significantly reduce your risk of becoming a victim. If you share this information with your friends and family members, we can help our senior community from every type of fraudster.
