What are senior scams?

As technology grows, scammers have discovered new ways to target senior citizens. As a result, senior scams have become a prevalent and worrying issue in society. Fraudulent activities targeting the financial and emotional status of older adults can leave them destitute and devastated.

Senior scams are malicious fraud activities that exploit older adults for financial gain. They include government impersonation schemes, romantic scams, reverse mortgage scams, and phone scams, among many others. The disconnect between modern technology and cognitive decline makes seniors vulnerable to scams.

Why do financial scams target seniors?

Senior scams, or elder fraud, are fraudulent activities targeting older adults and exploiting them for financial gain. Scammers deliberately focus on the senior demographic due to their vulnerability.

First, scammers perceive older adults as more trustworthy, especially individuals they believe have their best interests at heart. Hence, malicious people use this perception by presenting themselves as caring and kind individuals from reputable organizations. 

Secondly, seniors have a chunky amount of savings after a lifetime of work, making them lucrative targets. Fraudsters know that the scams have potential big payoffs, motivating them to focus on seniors. Additionally, many seniors are not tech-savvy, making them vulnerable to social media and phone scams. The unfamiliarity with technology leaves seniors vulnerable to fake websites that aim to manipulate older adults. 

Seniors sometimes experience cognitive and physical impairments, making them further vulnerable to fraudulent scams. For instance, cognitive impairment may hinder seniors from exercising their best judgment when encountering warning signs of fraudulent scams. Also, seniors are reluctant to report scammers due to the fear of losing autonomy or being perceived as incompetent. Therefore, in many cases, older adults remain silent about scams due to the fear of losing their independence. 

Signs you’re being scammed

Here are some of the indicators that you are being scammed:

You won a contest you didn’t enter

If you receive a call or message claiming you have won a lottery or contest you did not enter, it should raise a flag that you are likely being scammed. In most cases, fraudulent messages promise a large amount of cash to entice seniors. Remember, legitimate contests do not reward people who have not participated. 

You received an unusual correspondence

Scammers may send emails, letters, or phone calls, pretending to be from a reputable organization like a well-known business or government agency to scam seniors. The messages or calls look professional and believable, making seniors vulnerable to fraudulent activities.

Plus, seniors looking for jobs can receive deceptive calls or emails from fraudsters pretending to be correspondents from the organizations they desire to work for. In such a case, it is important to reach out to legitimate organizations and confirm whether the information received is accurate.

You are asked to keep the conversation secret

Scammers impersonating a close family member and requesting financial assistance may request you to keep it a secret from another family member. In addition, romance scammers use this tactic to isolate you from people who can potentially unmask them.

If a romantic interest insists that you should keep your relationship a secret, be aware that you might fall victim to a scam.

You are pressured to take immediate action

Scammers create a sense of urgency to prevent victims from thinking critically about the situation and consulting people they trust before making a decision. For example, scammers can claim that a loved one is in immediate danger and you must take urgent action.

The pressure to act immediately overrides the natural decision-making process. When feeling pressure to take immediate action, step back and seek advice from someone you trust.

Common financial scams targeting seniors

Below are some of the most common scams targeting seniors:

Government impersonation scams

Fraudsters may contact seniors claiming to be representatives of government agencies such as Social Security. The scammers invest in technology to make their contacts seem legitimate.

In addition, scammers may take advantage of seniors who receive certain government benefits like Medicare, in an attempt to steal health benefits.

Phone scams

Seniors who may be trusting of unsolicited calls can easily fall victim to phone scams. For example, phone scams can take the form of charity solicitation following a natural disaster to exploit money from older adults. You should verify the caller ID and keep personal information confidential. 

Sweepstakes and lottery scams

The hope for a financial windfall can make seniors vulnerable to sweepstakes and lottery scams. In this case, scammers contact older adults, claiming they have won a lottery they never entered. The catch is that the fraud makes the win conditional by asking for an upfront payment before receiving the prize.

Computer tech support scams

Computer scammers take advantage of seniors' unfamiliarity with modern technology. In this case, they can use pop-up messages or make unsolicited calls claiming the victim's computer is at risk. Once they gain access to the victim’s computer, they may install malware to access the victim’s personal information.

Homeowner/reverse mortgage scams

In reverse mortgage scams, fraudsters use high-pressure tactics to convince seniors to take out a reverse mortgage. The homeowner scams target older adults who have built considerable home equity. In extreme cases, scammers may attempt to steal the home through deed fraud.

Investment Schemes

Investment schemes promise high returns with little risk associated with them. Some examples are Ponzi schemes, prime bank scams, and certificates of deposits. Investment schemes require seniors to research investment opportunities thoroughly before investing their lifetime hard-earned savings. 

Romance scams

Seniors' increased use of online dating platforms has resulted in the rise of romance scams. Scammers create fake profiles and prey on seniors looking for relationships to develop an intimate connection over time. Once they establish trust and attachment, the romantic fraudsters request monetary favors in the form of medical emergencies or travel expenses. The consequences of a romance scam can be deeply hurtful and cause emotional and financial instability.

Medicare and health insurance scams

In Medicare and health insurance scams, fraudsters pose as Medicare representatives to steal personal information. Scammers also take advantage of seniors and provide bills for untendered services.

The Medicare scams can potentially harm legitimate Medicare records. Hence, seniors should review their medical bills to avoid falling prey to such scams.

Funeral and cemetery scams

During grief and funerals, scammers take advantage of the vulnerability of those in mourning to defraud them financially. For example, fraudsters may claim that the deceased owed them money and pressure them to repay it. 

How to prevent senior citizen scams

Here are some of the ways that seniors can prevent senior citizen scams:

Set up identity theft protection

Investing in identity theft protection measures is a good way to take precautions from senior scams. Seniors can enroll in an identity protection service to monitor financial accounts and credit reports. 

Encourage open communication

Create a channel for open communication to make seniors comfortable sharing information about potential scammers and report violent cases. It can also help seniors take precautions against common scams.

Be suspicious of unsolicited calls or messages

Seniors must maintain a healthy skepticism, especially regarding online dating platforms and unsolicited calls. Seniors should be educated on the appropriate channels to provide personal information and exercise caution when responding to emails. 

Report frauds and scams

Seniors must report information about fraud and scams to the proper authorities. Reporting prevents further victimization. The information can help warn other older adults about scam trends.