Elder Americans may find themselves the target of specialized crime: senior fraud, which has been called “the crime of the 21st century.” Scams targeting individuals aged 60 and older led to over $3.4 billion in losses in 2023—an increase of 11% from 2022. The average victim of elder fraud lost $33,915 due to such crimes in 2023. People of this generation are attractive to scammers for a few reasons: their accumulated retirement wealth; perhaps a lack of familiarity with online communications; and perceived social vulnerability. Here are 15 common elder money scams running in our digital age for you to beware of.
Counterfeit Prescription Drugs
Seniors, who commonly need to take more than one regular medication, can be tempted to shop at online pharmacies for a better price. There is a risk that the online provider is a scammer and the drugs are simply not effective, or may even be harmful to one’s health. Check that your online pharmacy is legitimate if you are shopping online for drugs. This scam could be a serious risk to your health and your pocket.
Technical Support Scams
Technical support scams caused the highest number of complaints from those aged over 60 to the Internet Crime Complaint Center in 2023. Typically, the target will get a pop-up message, phone call, email, or text advising that their computer has a virus and needs protection. The fraudster asks for remote access to the computer, or for you to pay for their services and/or software to fix the issue. Beware! Never give strangers remote access to your computer, or pay for services you don’t need!
Medicare Fraud
Scammers posing as Medicare representatives obtain seniors’ personal information, or even provide phony healthcare services at dodgy mobile clinics. Then they bill Medicare and pocket the money. Protect your health insurance ID like you would a credit card and beware of “free” services. Check your explanation of benefits regularly and ask Medicare if anything seems awry.
Internet Fraud
Online fraud is commonplace and seniors may be more vulnerable due to their late adoption of internet use. For example, pop-up ads for anti-virus software, access to AI tools, or cheaper telecommunications can lead to purchases leading absolutely nowhere. Phony messages about tax refunds can also lead to seniors providing compromised bank details. Exert your due diligence in internet purchases and check that the URL address of the website you are on has the padlock icon for a secure connection and safe money transfer.
Illegal Telemarketing Calls
Telephone calls with a dodgy person speaking at the other end persuading you to part with information or money are also commonplace scams. Seniors are the most likely to fall for a scam talking to someone on the phone. Scams such as the “fake accident” of a loved one requiring money, or the “fake charity” asking for financial help for an emotive group (children, police, animals) are examples of criminal telephone activity. Beware of strangers on the phone telling you your computer needs updating or the police need a donation.
Investment Fraud
Seniors often have a nest egg to last for their retirement, and criminals like to guide them to deposit those funds into “investment” schemes that “promise” to do well for them. From shares and stocks to investment property, seniors can be ripped off for trusting the wrong people. Be wary of unsolicited investment advice and too-good-to-be-true returns. Always consult a formally qualified financial consultant before making any investment moves.
Funeral Scams
Some unethical funeral homes and independent criminals, unfortunately, like to prey on grieving seniors. One insidious method is a person (criminal) showing up at a publicly advertised funeral and saying to the family that the deceased has undisclosed debts. Please don’t feel obliged to pay anyone money on behalf of your dearly departed. And don’t pay for an expensive casket for cremation if you don’t have unlimited funds and don’t feel it is necessary.
Lottery Fraud
You can be forgiven for feeling the thrill of being notified you have won a lottery, a sweepstakes, or a random grand prize! Everyone loves to win; however, if the proviso is to pay a certain amount in fees or taxes to secure the winnings, you will know it is a scam. Take a moment to check yourself to see if you are a potential victim of this scam. Criminals will go to lengths to collect your hard-earned cash in your joy of the (misguided) moment.
Essential Services Scams
In this scam, the criminals call you or visit you and say they will shut off your gas, electricity, or phone service unless you pay a certain amount. Always check with your utility company using the number on your bill before falling for this scam. It is a heavy-handed way to get vulnerable seniors to part with their money.
Reverse Mortgage Scams
Seniors often own their own homes and scammers will take the opportunity to capitalize on that asset. The reverse mortgage loan withdraws money from the equity in your home, and the scammers steal the proceeds, leaving the borrower with new debt on their home—or no home at all. The criminals often attempt this fraud by recommending various (unaffordable) home improvements—a problem solved if you take out the reverse mortgage. Beware of such big decisions on your home!
Fake Anti-Aging Remedies
Seniors, especially women, can be vulnerable to the clever persuasions of the anti-aging industry. We all want to look our best at 60, 65, 70, and 75! Botox and medications are offered at great cost to seniors who take health risks with these treatments. Beware of remedies offering miracles and check with your doctor on products before using them.
Grandparent Scam
The “grandparent scam” could affect Nanna and Pop in a very upsetting emotional and financial way. They get a phone call or an email from a criminal posing as a “grandchild” saying they need money immediately for a plane ticket, medical reason, etc., and their loving Nanna or Pop of course sends it. Always check with your family on the whereabouts of grandkids and be alert to this very manipulative fraud.
Government Impersonation Scams
In this scam, the target gets an email, phone call, or text message from a person showing a fake employee ID and pretending to be from the IRS, Social Security, or the FTC. They will ask for personal information or urgent payment to solve a non-existent issue. Be advised real government departments never do that. Cut contact immediately with anyone who tries to intimidate you, and check on official channels if that person “in authority” exists.
Charity Scam
This scam is often spawned by a disaster making the news (flood, earthquake, war), and the target is contacted with an urgent plea for financial help. Or the criminal may pose as a collector from a real charity. Always be suspicious when there is an urgency to the request for your donation and make sure you search the name of the charity, verify it through Charity Navigator or Charity Watch, and only then make the donation through the charity’s website or official phone number.
Romance Scam
Last but not least, the romance scam preys upon the open-hearted senior who may be living alone and vulnerable to the flattery and attentions of a silver-tongued criminal. The (fake) online profile will seem very attractive, and they aim to build trust quickly, building a “whirlwind” romance atmosphere. Then… they will ask for money, needed for health reasons, or to fix a disaster in their life—or even for a plane ticket to rendezvous with their target. Once they have taken as much money as they can from their target, they simply disappear. Don’t give money to people you don’t actually know, and protect your wallet and your heart.
