The Top 8 Financial Scams Targeting Aging Adults to Watch Out for in 2023
Year after year, the senior population is a continuous target for financial scammers. In fact, the 2022 Elder Fraud Report reports an over 74% increase from 2020, with around 2.6 million victims over 60 reporting losses of $1.7 billion. These financial scams include romance, lottery, and sweepstakes scams.
Seniors are at higher risk of being scammed because of several factors. They're less likely to report it, have more savings, are more trusting, and are less likely to question unexpected requests for personal information. Experts also believe an increase in isolation since the COVID-19 pandemic also plays a significant part.
One of the best ways to prevent your loved one from being scammed is to know what scams exist. We put together the top 5 financial scams targeting seniors to look for in 2023.
2023 Financial scams targeting older adults
Investment scams
The Federal Trade Commission (FTC) reported that adults 60 and over lost $147 million to investment scams in 2021 (up 213% from 2020).
The investment scams included:
Seminars and unsolicited investment advice
Fraudulent stocks and commodity futures
Investing in rare coins, gemstones, and art
Cryptocurrency investments
Romance/Confidence fraud
Con artists know that many aging adults are lonely and isolated, making many vulnerable to new friendships or relationships. While you shouldn't discourage your senior from dating or making new friends, you should help them understand the warning signs.
Scammers usually create fake profiles on dating websites or social media platforms. Once they earn the victim's trust, the scammer will convince them to send them money. They may ask for small amounts here and there or one large amount.
What signs should seniors look for when it comes to relationship scams?
They avoid meeting in person by claiming to live or be traveling outside the United States
They make plans to meet but always have something come up last minute
They say all the right things and escalate the relationship to become serious pretty fast
They ask that your loved one start communicating through text or email
They ask for money for a medical emergency or unexpected expense
They ask for money to either be wired or put on a gift card and then provided with the card number
Tech support scams
Technical support scammers take full advantage of seniors regarding technology and cybersecurity.
Often, they create a pop-up message on a computer or smartphone, telling the victim their device is damaged and urging them to call "support" to fix it. When the person calls the support number, the scammer may request remote access to the older person's computer and/or require them to pay a fee to repair it.
Government impersonation scams
Government imposter scams involve scammers calling unsuspecting older adults, pretending to be from a government agency, such as the Internal Revenue Service (IRS), Social Security Administration, or Medicare. Over the last few years, con artists have been using unique technology to "spoof" phone numbers, making them appear to be calling from a valid source.
They use bullying tactics to convince the victim they have unpaid taxes that involve being arrested or deported if not paid in full immediately by a prepaid debit card, wire transfer, or cash.
Scammers may persuade seniors they will lose their Social Security or Medicare benefits if they don't provide identifying information. They then use the personal information to commit identity theft.
Sweepstakes and lottery scams
Scammers usually reach out by phone, mail, or email and often impersonate well-known organizations, such as Publishers Clearing House.
They tell the seniors they must pay a fee by prepaid debit card, wire transfer, or money order to collect their winnings.
The grandparent scam
The grandparent scam is a devious scam that plays on a senior's heartstrings. Scammers call a senior and ask, "Hey, grandpa, do you know who this is?" The scammer then asks for money to help with an urgent financial problem, like bail money or overdue rent. Often, the con artists ask for the money to pay in a way that doesn't require identification to collect, such as money transfers or a gift card. These payment methods also make it nearly impossible to recover after sending.
Scammers may also call and pretend to be a lawyer, police officer, or doctor helping the grandchild. They use intimidating and bullying tactics to get the aging adult to send money as quickly as possible. Some fraud claims even report scammers showing up at the senior's home and posing as "couriers" to collect the money.
Medicare and health insurance scams
Since anyone over 65* qualifies for Medicare, it's the perfect tool for financial fraud against the aging population. Scammers may pose as Medicare representatives to convince seniors to share their personal information that they can use or sell for identity theft and medical theft.
Some Medicare scams offer seniors free or reduced-cost services or equipment, like "miracle cures," vaccines, and COVID-19 Testing. However, scammers either deliver poor-quality services or equipment or use the participant's information to bill Medicare for the total amount.
*Must be a US citizen or permanent resident
Robocall scams
Robocall scammers use sophisticated, automated phone technology for various scams on older adults when they answer the phone. The caller may claim that a warranty is expiring on their car or electronic device, and payment is needed immediately to renew it.
Another typical robocall is the "Can you hear me?" call. When the victim says "yes," the scammer records their voice and hangs up. They then use the voice signature to authorize unwanted charges on items like stolen credit cards.
How to avoid being financially scammed
Not only should you spend some time with your loved one going over the financial scams that are out there, but also ways they can be proactive in not being a target, such as:
Shredding credit card receipts and old bank statements
Closing out/canceling credit cards or bank accounts that aren't being used
Never give out personal information online, on the phone, or in writing unless your loved one initiates the contact
Don't respond to an offer they don't understand
Consulting a trusted friend, family member, or financial advisor over new investments.
Paying for services after the work is provided
Never pay for services via prepaid gift cards or cryptocurrency
Never act quickly or secretly to an offer (These are common tactics scammers use.)
Assigning someone they trust as their financial power of attorney
Appointing a trusted person for their bank to contact if there is questionable activity on their accounts and investments
Signing up for a service that monitors bank accounts, investments, and credit cards for suspicious activity, like unusual withdrawals.
What to do if your loved one is the victim of a financial scam
Scams are designed to catch us off guard, and they can happen to anyone, no matter how much you prepare. First and foremost, remind your loved one there is nothing to be embarrassed or ashamed of if they become victims of a financial scam.
If the senior in your life has been scammed, you should contact the local police, their bank (if money was taken out of their account), and Adult Protective Services (APS).
You should also report it to the FBI or the National Elder Fraud hotline using the information below:
National Elder Fraud Hotline- 1-888-FRAUD-11 (1-888-372-8311)
Contact your local FBI field office, submit a tip online, or file a complaint with the FBI's Internet Crime Complaint Center
The more information you can provide when reporting a scam, the better. Keep any and all forms of communication (emails, letters, voicemails, etc).
You maybe ask for the following information:
Name of scammer or company
Methods of communication scammer used to contact
Date(s) of contact
Methods of payment
Where your loved one sent money/gift cards were sent
Description of instructions given by the scammer
What to do next
If you need information about senior living communities in the Richmond area or want to explore housing options to meet the needs of your loved one better, Benchmark Senior Solutions can help.
We offer free senior housing advisory services for older adults in Central VA. That means we use our knowledge and expertise to help your loved one find the perfect place to call home based on their medical needs, budget, and lifestyle.
