Common Elder Fraud Schemes
Each year, millions of elderly Americans fall victim to some type of financial fraud or confidence scheme, including romance, lottery, and sweepstakes scams to name a few. Criminals will gain their targets’ trust and may communicate with them directly online, over the phone or through postal mail. Seniors are often targeted because they tend to be trusting and usually have financial savings, own a home and have good credit.
Older adults may also be less inclined to report fraud because they don’t know how, or may be too ashamed at having been scammed. They might also be concerned that their relatives will lose confidence in their abilities to manage their own affairs. Elder fraud is a growing problem, with seniors suffering an estimated $3 billion in losses annually.
To combat elder fraud, you should be aware of the common schemes, such as tech support, romance, investment and identity theft scams, and take protective steps such as guarding personal information, using strong passwords, verifying unexpected requests and communicating openly with family. Regular financial monitoring, setting up legal protections, and reporting any suspicious activity to trusted authorities are crucial for combating these crimes.
Note These Scams Commonly Presented To Seniors
Tech Support Scams: Scammers pose as tech company representatives, claiming there's a problem with your computer or software, then request remote access or personal information.
Romance Scams: Individuals build trust with potential victims online, often through dating or social media, and then persuade them to send money.
Investment Scams: Scammers promote fake investment opportunities that promise high returns but are designed to steal money.
Identity Theft: Criminals steal an elder's personal information to commit fraud, often after a personal data breach.
Impersonation Scams: Scammers impersonate government officials, law enforcement, or utility companies to trick people into sending money or revealing personal data.
Home Repair Scams: Rogue tradesmen target seniors for unnecessary or poorly done work at inflated prices.
Ways To Prevent Elder Fraud
Protect Personal Information: Never share passwords, PINs or one-time passcodes with strangers. Secure sensitive documents at home.
Use Digital Safeguards: Install antivirus software and enable pop-up blockers on your computer to prevent malicious software.
Be Skeptical: If an offer sounds too good to be true, it probably is. Don't click on links in suspicious emails or texts.
Communicate and Stay Connected: Maintain open communication with trusted family and friends about finances.
Monitor Accounts: Regularly review bank statements and credit reports for unusual activity. Consider financial monitoring tools.
Verify Requests: Be cautious of unsolicited calls, emails, or texts asking for money or personal information.
Avoid Quick Decisions: Avoid making financial decisions under pressure or from an unsolicited offer.
Utilize Legal Protections: Set up a durable power of attorney (POA) or place limits on accounts to prevent unauthorized withdrawals.
What To Do If You Suspect A Scam
Do Not Send Money: Be very wary of sending money to someone you don't know.
Hang Up: If someone calls claiming there's a problem with your computer, just hang up the phone.
Report the Scam: File a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov
Contact Your Financial Institution: If your information is compromised, contact your bank immediately to secure your accounts.
Where To Report Fraud And Get Help
If you suspect you’ve been a victim of a senior scam or any type of fraud, make sure you speak up as soon as possible. Report the incident to the FTC at ReportFraud.ftc.gov or call 877-FTC-HELP. You can also expand your efforts by reporting to other trusted resources:
IC3.gov – The FBI’s Internet Crime Complaint Center for reporting cybercrime.
IdentityTheft.gov – A one-stop resource from the FTC to help you report and recover from identity theft.
Additionally, contact your local police, your bank and someone you trust.
Source information: Federal Bureau of Investigation