How to Avoid the Most Common Scams Targeting Elders

GETTING SCAMMED 

They say society is judged by how it treats its most vulnerable members. If that’s the case, the number of scams targeting our elders doesn’t speak well of us. 

The FBI’s 2021 Elder Fraud Report states that more than 92,000 people over 60 experienced elder fraud in 2021. The average monetary loss was over $18,000 for a combined total of $1.7 billion.

Most disturbing, these figures represent a 74% increase of losses in elder fraud since 2020. 

To keep you and your loved ones safe from the emotional and financial toll of fraud, you need to know scammers’ most common schemes and why seniors are vulnerable to them.

WHY SENIORS ARE TARGETED FOR SCAMS

Scammers target older people because they hope the vulnerabilities of age will play out in their favor. 

Scammers look for ways to capitalize on elders who:

Live alone: Living alone may mean that someone is isolated from others and eager to feel a human connection. If the elder is still in charge of their own finances, scammers don’t have to worry about family members sniffing them out.

Technologically un-savvy: Seniors lived before technology became a way of life. They aren’t digital natives. Even if they have embraced smartphones and tablets, they often don’t have the knowledge and experience to recognize red flags.

Are sitting on a pile of cash: Seniors have access to large sums of money in a way that younger people don’t. Their retirement accounts have come to maturity. They may have sold their home, leaving them with hundreds of thousands of dollars in liquid assets. 

Have cognitive decline: The number of seniors living with some form of dementia is growing every day. Cognitive decline makes defrauding someone a lot easier. 

WHAT DO SCAMMERS WANT 

Ultimately scammers want money. Your trust, plus access and information, help them get it.

Some scams target your money directly. Other scams are aimed at getting access to your private data—your bank accounts, retirement accounts, social security number—all of which give them a direct route to your hard-earned cash. 

SCAMMERS ARE SMART 

One thing we can’t accuse scammers of is being stupid. They use a combination of technological and interpersonal skills that prey on seniors’ emotions, fears, and vulnerabilities and part them with their money.

Scammers are opportunists. They stay on top of trends and new developments and use them to their advantage. COVID-19 upending society? Scammers will find a way to leverage the fear and isolation of a pandemic to their advantage. News stations reporting on a particular natural disaster or tragedy? Scammers will tap into people’s desire to help and make sure donations take a detour to their own pocketbooks. 

Scammers are constantly finding workarounds against any protections—technological or otherwise—meant to deter them. Just look at the caller ID. 

CALLER ID SPOOFING

Remember how great it was when caller ID first came out? You could easily screen out unwanted calls, including sales calls. When an unknown number showed up, you let your answering machine or voice mail take the call. If there was no message and a familiar click on the other end, you knew you avoided a sales call. 

Now, scammers have figured out how to get around that. Instead of their own number showing, scammers impersonate or ‘spoof’ other phone numbers. 

Caller ID can be spoofed to look like a trusted organization is calling. Common ones include Social Security Administration, Medicare, your bank, your internet browser, or major retailers. 

Another method is displaying a number that looks local. You think it’s probably someone you know because the area code and exchange are familiar. Lo and behold, it’s someone trying to pull off a scam.

THEY SAY YOU'RE CONNECTED TO A CRIME 

This scam preys on fear. Someone will call, often using a spoofed number, and say your accounts may be linked to a crime. The number looks legitimate, and that’s why people get duped. These callers are often very intimidating. This makes their targets nervous and more apt to try to appease the caller. 

Scammers demand precious information so they can “solve” your problem. They demand you give them information now. Give them your information, though, and your problems are just starting. 

THEY SAY YOU DIDN'T PAY YOUR TAXES 

Another ruse scammers use is claiming you owe taxes. Scammers identify themselves as IRS agents and demand you pay money right away. Often, they ask for payment via wire transfer or through gift cards, both of which are difficult to trace.

Once again, scammers threaten legal action or arrest if their targets don’t comply.

THEY SAY THEY HAVE MONEY FOR YOU 

This scam can happen over the phone or via email or social media messaging. Someone reaches out to you and says you have a prize waiting for you—you won the lottery or sweepstakes. Just send them money for taxes and fees (through gift cards and wire transfers) and your prize will be on its way.

Another version requires scammers to “give” you money. They might say:

• You are getting a refund.
• You have inherited money.
• You won a local raffle.

They deposit money into your account (thereby getting your account number), but the check will eventually bounce. The scammers then say they deposited the wrong amount—an amount much larger than originally stated. 

Scammers play on their targets’ pity by saying if the money isn’t returned, they (the scammer) will lose their job. This scam is so pervasive and so effective, that there are whole YouTube channels devoted to foiling the scammers.

THE “GRANDMA I NEED $$$" SCAM 

In this scenario, scammers pretend to be grandchild who needs help. They may create background noise to disguise their voice. Combine hearing issues with cognitive decline, and this scam is pretty easy to pull off. Nothing tugs at someone’s heartstrings like hearing their grandchild is in trouble. 

DON'T CLICK THAT LINK 

One small click. That’s all it takes. 

You get an email making great promises—your hair will grow back, you’ll get rich, and your wrinkles will disappear. You click on the link and—abracadabra! You now have malware on your computer. 

Malware creeps along in the background of your computer. You may not be aware of it, but it’s doing things you don’t want—like breaching your computer’s security. Malware can access confidential information, destroy data, or spy on you.

Be cautious opening links from people and organizations you don’t know. Even if you think you recognize a company, you still have to be careful. An email from a familiar-looking business could be another type of scam—phishing.

GONE PHISIN' 

Phishing is like, well…fishing. Except scammers aren’t trying to catch fish, they’re trying to catch you. 

Phishing scams pose as a legitimate company, one whose services you may use. They send a text or email saying there’s a problem with your account. They may claim your bill is overdue, or you need to update your information. Again, the scammers are preying on fear—the fear that something is ‘wrong.’

Before you give out any information to these fraudulent companies, look at your account. See whether the mysterious communication jibes with what you see on your account. 

FINAL TIPS TO AVOID ELDER FRAUD 

Be wary of any caller who asks you for money. There are almost no legitimate businesses or agencies that would make such a call.

Go with your gut. If something about a call or a message exchange makes you uncomfortable, end it. Ask someone you trust to help you look into the call or message. 

Install anti-virus software on your computer and smartphone. Keep both of these updated to stay ahead of internet scams.

Review your financial accounts and your credit reports regularly to spot issues early. 

One thing to remember is that scammers are playing a numbers game. They don’t care if you catch on to them and chew them out. There are plenty of other people they can try their tricks on.

If you or someone you love has been the victim of internet fraud, you can file a complaint with the FBI here.

If you need help with a senior move, let us help!