As we age, we become more vulnerable to scams, particularly those perpetrated by criminals targeting elderly people. It is important to be aware of the ten most common scams so that you can properly protect yourself and your family members against them.
Without knowing what they are and how they operate, it can be incredibly easy to fall victim to these schemes, which could lead to devastating financial and emotional consequences. Knowledge is power, so let’s arm ourselves with information to help prevent scam artists from taking advantage of seniors in our community.
What is Elder Fraud? Why Target Our Senior Citizens?
Elder fraud is a serious and growing problem across the world. It is any type of scam or deceptive activity that targets seniors for financial gain. Scammers often choose these victims because older adults may have more assets and have difficulty understanding the technological aspects of certain scams, such as when they are targeted by phishing emails.
Unfortunately, many victims do not readily report this type of crime because they feel ashamed or embarrassed having been fooled. It’s critical to keep our seniors safe and informed about the numerous types of elder fraud that exist, so they don’t fall victim to those who seek to take advantage of them.
10 Common Elder Scams
Elder scams are sadly commonplace. Unsuspecting adults over the age of sixty five can be taken advantage of in a variety of ways with the most common being a person pretending to be a grandchild asking for money, fake tech support offers, and financial abuse. Romance scams, reverse mortgage schemes, giveaways, telemarketing calls, investment fraud and crypto schemes are also increasingly prevalent.
Additionally, health insurance and medicare fraud may leave seniors on the hook financially while government impersonators can extort tax information by claiming false debts. It is essential that older adults understand how to recognize these manipulation tactics so as not to become victims of elder fraud.
1. Grandchild in Trouble Scam
Grandchild in trouble scams are becoming increasingly common as the elderly often view their grandchildren as a precious part of their lives. Scammers typically pose as grandchildren, claiming to be in distress and need help financially.
Alternatively, perpetrators may try to scare seniors into sending money by saying that a grandchild is in serious legal trouble and needs bail money. Signs of this scam include requests for money without providing details about the situation and asking for payment methods that make it difficult for the transaction to be tracked, such as prepaid cards or wire transfers.
It is important for older individuals to remain vigilant and always verify identity before sending funds to anyone. Contacting other family members to confirm any stories of distress can help minimize the risk of falling victim to fraudulent activities.
2. Fake Tech Support
Fake tech support scams are a common way for scammers to target elderly people. The scam often involves pretending to be a grandchild and asking for money due to an urgent need, or else posing as a technical service provider to fix some made-up problem related to the victim’s computer.
To identify these scams, it is important that the elderly person remains sceptical and does not provide any personal information such as banking details or passwords. Also, if there is ever a request for money, they should check closely with a trusted relative first before making any decisions. Being educated on the potential risks can help protect vulnerable individuals from difficulty in the future.
3. Telemarketing and Phishing Scams
As such, it’s important to ask questions or take other steps such as researching the purported company in order to increase security against scammers. Be wary of any solicitations that require immediate action or appear too good to be true – if something seems suspicious, it’s best to pass on giving out your personal information or sending money.
It should also be noted that certain banks and credit card companies offer extra protections for their senior customers which can help reduce their chances of falling prey to a scam.
4. Financial Coercion or Abuse
Elder abuse takes a multitude of forms, including financial coercion and transfer of ownership. In some cases, a family member or other party close to an elder will take advantage of their vulnerability to steal control over their assets.
This type of scam is often difficult to detect, as the abuser may have been trusted, making it unlikely that they would be suspected. In order to identify this type of elderly scam, one should look out for suspicious changes in assets such as banking data or sudden transfers without consent. Friends and family should also pay attention to any suspicious behavior exhibited by those close to the elderly person and keep a watchful eye on their assets.
All aspects of financial abuse or coercion must be properly investigated in order to protect elders from unscrupulous people who would seek to exploit them.
5. Romance Scams
Romance scams are becoming an increasingly common scam among the elderly, as fake personas on dating apps or social media sites are used to lure targets. Falling for these fake accounts can be easier than one thinks, especially if targeted by a professional; however, there are ways to make sure that potential partners are who they say they are.
PeopleFinders is a great source to help verify the identity of someone before getting too deep into a possible relationship. Trusting someone blindly can have adverse effects in the future, and it’s important to take preventative measures, like using PeopleFinders, to keep yourself (or an elderly loved one) safe from scams like this.
6. Reverse Mortgage Scams
Reverse mortgage scams are becoming increasingly common, especially targeting seniors. In these cases, a salesperson will act like they have your best interests at heart, trying to convince you to sign up for a reverse mortgage without any consideration of the long-term effects it may have. The scam works by pressuring seniors into taking out extremely high interest loans in order to cover their living expenses and allowing the salesperson to reap huge profits from them.
To avoid this type of scam, be sure to always get more than one loan offer and compare the terms before making your decision. Additionally, never feel obligated to sign a deal if you’re not completely comfortable – even if someone is pressuring you – and make sure that you read all of the details associated with each offer so that you know exactly what you’re getting into.
7. Giveaway Scams
Giveaway scams are a common way of taking advantage of unsuspecting older individuals, preying on their excitement of winning something and making off with a large sum of money. In this type of scam, the fraudster may call or reach out directly to victims claiming that they have won a contest or sweepstake prize which in reality, never existed.
They will then ask for all sorts of personal details, banking information or even require an advance payment in order to acquire the nonexistent prize. An easy way to identify such ruse is to question any claims that you have won something you are unaware of participating in and remember that official lottery winnings generally do not require any payments up front.
8. Investment and Crypto Scams
Elderly persons are especially vulnerable to scams, particularly those involving investments and crypto-currencies. These criminals often use the promise of guaranteed returns with low risk as a means of luring in their victims. As with most frauds, it is immensely important to recognize these schemes in order to protect yourself or your elderly loved ones from falling prey.
When evaluating an investment offer, one should look for signs such as an unreasonably high return offered within a relatively short time period, as well as claims of making money regardless of any external market conditions or forces.
Additionally, never give out personal financial information unless one is certain the offering entity is both legitimate and above board. Being aware and vigilant of these practices can go a long way in keeping seniors safe from scammers.
9. Health Insurance & Medicare Fraud
When it comes to elderly scams, health insurance & Medicare fraud is especially egregious, as scammers often pose as Medicare representatives in order to steal personal information from unsuspecting seniors.
The scam typically involves someone calling the senior and attempting to get important details about their health plan or other financial information; recognizing this kind of scam is paramount for elderly citizens, as failure to do so can result in serious consequences.
To spot this particular kind of fraud, one should always confirm any calls they receive that ask for personal financial data with a trusted family member or friend, as well as double-checking with the official Medicare website. Safeguarding against such scams is essential for ensuring that seniors are not taken advantage of.
10. Government Impersonation (IRS, CIA, etc)
Elder scams using government impersonations typically involve a criminal caller or email attempting to convince victims that they are an official with a government agency such as the IRS or CIA. They may then try to get the victim to provide confidential information like social security numbers, bank account details, or other data. Some scammers even attempt to extort money in this way, citing taxes due or legal fees for fake offenses.
To avoid becoming a target of these scams, be extremely wary if contacted by someone claiming to represent a government agency–especially if they request any kind of financial information. It’s always best to contact the relevant agency directly and ask if any action is required from you using an official number listed publicly instead of relying on numbers supplied by the scammers.
Common Red Flags to Look Out For
Remember that if a deal seems too good to be true, it usually is! Whenever dealing with unfamiliar individuals or companies, due diligence and critical thinking are always advised.
PeopleFinders
Elder scams can be damaging to seniors’ savings and quality of life. To protect your loved ones, it can help to use a service like PeopleFinders. This easy-to-use platform offers features like Reverse Phone Lookup and Name Search which allow you to cross reference information swiftly and accurately.
Identifying scam numbers quickly and verifying someone is who they say they are gets the protection process started right away. It’s easy to use, and only takes a few minutes. PeopleFinder puts senior security first by helping keep everyone safe from common elder scams.
What to Do If You or Someone You Know is a Victim of a Scam
Elder scams are a heartbreaking reality; unfortunately, as people age, they can become more susceptible to deceptive practices. If you or someone you know has been scammed, acknowledge the emotions of anger and frustration that come with it. After that, inform yourself on the best steps to take in order to handle the situation.
Reporting the scam not only helps yourself and the other victim, but can also potentially help law enforcement authorities investigate these fraudsters. Additionally, consider gathering relevant records such as emails, receipts or bank statements and take them to your local police station or to the feds at ftc.gov/complaint.
Remember that although it may be impossible to recover every cent lost due to elder scams, taking proactive steps can help ensure this crime does not cause additional harm.
Conclusion
Seniors have to be extra vigilant nowadays, due to the many scams targeting them. The negative impacts on their wallets and credit can be felt for years, if not lifetimes. While some may have access to resources that can protect them, it’s important to remember that being aware of common elder scams is a crucial first step in protecting yourself and your loved ones from financial exploitation.
By educating oneself on the red flags of these devious schemes, seniors across the country will be able to make all types of transactions with confidence and peace of mind knowing they won’t become a scammer’s next victim.
