Financial scams targeting aging adults are on the rise, resulting in identity theft, damage to creditworthiness, and loss of assets and property.
For older adults, the golden years are supposed to be an era for enjoying retirement, pursuing personal interests, and spending more time with family and friends. Unfortunately, with U.S. senior citizens reportedly losing over $3.1 billion to financial scams in 2021, it has also become an era to safeguard older adults against fraudsters who target them in pursuit of financial gain.
In this important blog, you will learn about five common scams affecting senior citizens today, what you can do to keep yourself and your loved ones safe, and what to do if you suspect you or someone you know has become a victim of elder fraud.
Some Key Statistics you should know:
- In 2021, there were 92,371 older victims of fraud across the U.S., resulting in $1.7 billion in losses (Elder Fraud Report, FBI, 2022).
- Older adults who experienced scams reported they lost more money to tech scams than they did from any other type of fraud (Consumer Protection Data Spotlight, FTC, 2022).
- Losses from elder fraud schemes increased by 84% from 2021 to 2022 (Elder Fraud Report, 2022, FBI).
Five Common Scams Targeting Senior Citizens
1. The Grandparent Scam
This all-to-common crime begins when a fraudster calls a senior citizen and impersonates a grandchild who claims to be in trouble and needs immediate financial assistance. Alternatively, the call may come from a fraudster impersonating an authority figure claiming that a grandchild has been in an accident or has been arrested.
The main objectives here, of course, are to tug at the senior citizen’s heartstrings, secure their trust, and get them to hand over money to help their desperate grandchild.
Ways to detect a grandparent scam:
- If the scammer doesn’t know a grandchild’s name, they may try starting a phone conversation with, “Hi Grandpa, do you know who this is?”
- The scammer may ask for money to be sent immediately via gift cards, prepaid cards, or wire transfers.
- The scammer will say the situation is private and give instructions to not tell anyone else.
2. Government Agent Impersonation Scam
A phone call from someone claiming to be from a government agency such as Medicare, the Social Security Administration (SSA), or the Internal Revenue Service (IRS) usually gets this scam rolling. The phone number that appears can make the call seem legitimate when it’s actually just a spoof ID (i.e., Washington D.C. location and area code).
Oftentimes, scammers initiating these calls will attempt to gather personally identifiable information (PII) from senior citizens to steal their identities or threaten the loss of government benefits unless the money gets sent immediately.
Ways to detect a government agency impersonation scam:
- The scammer may ask for Social Security Number verification or verification that bank account information is correct for direct deposit of Social Security or tax payments. Understand that the federal government will never call, email, or text in order to get personally identifiable information (PII).
- The scammer may give detailed instructions for making a payment, whether it’s a wire transfer, debit card transaction, gift card purchase, or other immediate form of payment.
- The scammer threatens arrest, a loss of benefits, or loss of money if PII is not provided or money isn’t transferred to them.
3. The Sweepstakes Scam
There’s probably nothing more enticing than being told you’ve won or you’re about to win a large sum of money or a big prize, right? Not so fast … this is usually the first thing a person will hear from a fraudster who’s running one of the oldest scams in the books—the sweepstakes scam.
With a sweepstakes scam, communication is usually initiated by phone, but it can also come in the form of emails, texts, and social media messages. The person contacted will be asked to hand over money upfront to receive their prize and the scammer will say this money is required to pay fees, taxes, or transfer fees on the prize winnings. The scammer may demand bank account information or ask that money be sent by wire transfer or gift card.
If money is sent to the scammer, it’s usually unrecoverable and the sweepstakes prize will never arrive. Unfortunately, these scams can continue for months or years if the victim continues responding to requests for additional up-front money.
How to spot a sweepstakes scam:
- The scammer demands money in order for the victim to receive their prize.
- The calls come from area codes 876, 284, or 809. Many sweepstakes and phone scams notoriously come out of Caribbean countries like Jamaica, the British Virgin Islands, and the Dominican Republic.
- If the sweepstakes solicitation comes via email, the email addresses are often from a free email host like Google or Yahoo.
4. Tech Support Scam
Designed to alarm, a tech support scam often involves a pop-up window on a computer or mobile device warning the person that their electronic device is severely damaged or has been infected with a virus. They are then prompted to call tech support.
Once trust is established, a scammer will try to convince a person to grant remote access to their electronic device in order to “troubleshoot.” If the scammer gains access, they may be able to convince that person to install damaging software that subsequently steals private information and destroys data.
Another common tech support scam is an urgent phone call demanding money from a person so that a company can provide repair service. In these cases, bank account or credit card information is obtained up front, and money is stolen for fake services that are never rendered because the repair company itself is fake.
How to spot a tech support scam:
- A legitimate tech support company will not proactively call or prompt anyone to call them; they also won’t have phone numbers on pop-up ads urging customers to call them.
- It’s common for a tech support scammer to claim they’re with Microsoft, Apple, or an internet security software provider. Check the phone number because it’s likely a spoof ID.
- Be suspicious if a company asks for money upfront to pay for computer or mobile device repairs. Legitimate companies will do the work first and then bill their customers.
5. Robocalls and Phone-Related Scams
Ah yes, the dreaded robocall. Millions of U.S. households receive these pesky pre-recorded messages regularly, and although some are legitimate, many are illegal scams that prompt people to follow message instructions in attempt to gather sensitive information.
While it’s best to not answer unknown calls, an answered call that seems suspicious can be handled by ignoring message prompts, remaining silent, and simply hanging up.
How to spot a robocall or phone-related scam:
- Phone calls from unknown numbers and locations are more likely to be scams. When in doubt, don’t answer them.
- A robocall will sometimes tell the recipient they’re receiving a bonus, special offer, prize, or discount. It’s likely a scam; hang up.
- The frequency of robocalls can pick up during tax season, after natural disasters, and before major holidays. It’s important to use extra caution when answering calls during these time periods.
What to Do If You or Your Elderly Family Member Has Been Scammed
Depending on the nature of the incident, it may be beneficial to report the incident to multiple agencies and institutions. Before you reach out, make sure to get as much information about what happened including:
- date of the incident
- phone number or website
- what information was requested by the scammer
- what information the victim provided
- if there was monetary loss and the amount of loss
- plus any other pertinent details
If you or your loved one has experienced attempted or actual fraud or identity theft related to your Chambers Bank accounts, please contact the Customer Care Center at 1-800-500-1044 to report the incident and request assistance.
If you need help finding resources in the U.S. due to elder fraud, contact the National Elder Fraud Hotline at 1-833-FRAUD-11.
To report scams, fraud, and bad business practices to the Federal Trade Commission (FTC), call 877-FTC-HELP or report the incident online at ReportFraud.ftc.gov.
To report scams, fraud, and bad business practices in the state of Arkansas, file a complaint with the Attorney General of Arkansas here.
For more information about how to keep yourself and your loved ones safe from scams, please see Protect Yourself & Your Finances.
