How to Spot & Protect Against Elder Scams

Financial scams targeting seniors are on the rise. Scammers often target seniors living on their own or in assisted living facilities due to their lack of familiarity with modern technology and an accumulation of savings or assets. They use an array of tactics; sometimes they appear friendly, sympathetic, and like they just want to provide assistance, while others use fear to persuade victims to fall for their scams.

Protecting seniors from these scams is essential for their financial security and emotional well-being. Here are some recent financial scams targeting seniors.

1. Imposter Scams (Government/Authority Fraud)

Scammers often impersonate government agencies like the IRS or Social Security, telling seniors they owe money or that their benefits are at risk. They may demand immediate payment or personal information to “fix” the fake issue.

2. Phishing Emails & Phone Scams

Fraudsters like to send emails or call pretending to be from banks, tech support, or reputable companies. These scams lure seniors into revealing sensitive financial information and even transferring money.

3. Investment Fraud

Fake investment opportunities that promise high returns with little risk are another common scam. Ponzi schemes, real estate fraud, or pressure to invest in non-existent companies are fraudster favorites. They may apply a sense of urgency to get the senior to commit quickly and without doing their own research.

4. Dating Scams

Seniors searching for romance can be targeted by individuals pretending to want to date or even be in love with them. These scammers build a relationship and then ask for money for a “personal crisis.”

5. Lottery and Sweepstakes Scams

Scammers may call, send emails or regular mail stating that the senior has won a prize but needs to pay a fee upfront to claim it. Once the money is sent, the fraudster disappears.

6. Charity Scams

Some fraudsters take advantage of seniors’ generosity by soliciting donations to fake charities, especially after natural disasters and during the holidays.

Keeping an eye out for the scams above and providing education about them helps protect seniors from these nightmare situations. Read on for a few ways to make sure the ones you care for—both at home and in assisted living facilities—are aware and protected.

1. Provide Education

Have regular conversations with seniors about different types of financial scams—and even hold seminars or group discussions if you work in an assisted living facility. Stress using caution when it comes to unsolicited calls, messages, and emails. Help them understand that reputable organizations never ask for personal information or payments via phone or email.

2. Encourage Caution with Personal Information

Remind seniors not to share sensitive personal details like Social Security numbers, bank account information, or passwords unless they are 100% certain who they are dealing with. Tell them to verify all unexpected requests before taking action.

3. Implement Financial Safeguards

Set up direct deposit for pensions or Social Security payments to reduce the risk of mail theft. Monitor bank accounts and credit reports regularly for unusual activity and place fraud alerts or freezes on credit reports. In some cases, a trusted power of attorney may need to be designated to help manage finances when seniors suffer from cognitive issues.

4. Combat Telemarketers

Encourage seniors to sign up for the “National Do Not Call Registry” to minimize telemarketing calls. This reduces the number of unsolicited offers and fraudulent calls they receive. Installing a call-blocking service or app can also be helpful.

5. Use Technology to Protect

Set up robust privacy and security settings on seniors’ devices. Implement two-factor authentication and strong passwords for all email accounts, online banking, and other sensitive platforms. Install antivirus software to detect phishing scams and malware.

6. Stay Involved in Their Financial Affairs

Without being intrusive, offer to review seniors’ bank statements and bills together periodically. This can help you catch any unusual transactions early on. Encourage them to reach out to someone they trust before making any significant financial decisions.

7. Report Suspicious Activity Immediately

If you suspect your loved one was targeted or has fallen victim to a financial scam, it’s important to act quickly. Contact their bank, credit card companies, and local law enforcement to report fraud. You can also report scams to the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB).

Protecting seniors from financial scams requires vigilance, open communication, and proactive measures. When you empower them with information about common scams and encourage safe financial habits, you can help safeguard their financial security and prevent potential fraud.