Scams are becoming increasingly sophisticated as time passes, and nobody is safe. Senior citizens, in particular, have found themselves becoming frequent targets. Here are 17 clever scams you should know so that you can avoid these deceptive pitfalls and stay safe.
Investment Scams
Unfortunately, a fair amount of senior citizens tend to fall victim to investment scams. These scams include Ponzi schemes, promising high returns with low risk, fraudulent bonds, and CDs, offering ‘secure’ investment opportunities, and charitable gift annuities that exploit seniors’ generosity and trust.
Tech Support Scams
The elderly have a reputation for struggling with their technological devices—a reputation that scammers try to exploit. Fraudsters will pose as tech support from well-known companies, either using malware or requesting remote access to take over the senior’s device. This scam exploits the person’s lack of tech knowledge and can cause big financial losses for the victim.
Robocalls and Phishing Messages
Older Americans may be subject to automated calls and emails impersonating trusted organizations, a scam that they sadly often fall for. The scammer does this in an attempt to extract personal and financial information from the senior either by pressuring them into sharing their details or getting them to download malware.
Sweepstakes and Lottery Scams
One common scam that senior citizens are often targeted by is the sweepstakes or lottery scam, in which they are sent a false notification by scammers saying that they have won money or a grand prize. Here’s the catch—the victim is told to pay upfront fees or provide personal banking information to claim their prize. The CSN claims that over 460,000 Americans have lost more than $330 million to this type of scam.
Homeowner/Reverse Mortgage Scams
This type of scam involves a fraudulent ‘financial advisor’ targeting seniors with home equity and convincing them to get a reverse mortgage that they don’t need. The scammer uses high-pressure tactics to get the victim to invest in fraudulent schemes. This can result in the senior losing home ownership and equity to scammers.
Charity Scams
Another common scam that targets senior citizens is the charity scam, wherein fraudsters solicit donations for non-existent charities. This scam exploits seniors’ willingness to support charitable causes. It’s important for older people to take precautions against giving financial information to unknown charities.
Telemarketing/Phone Scams
In this type of scam, fraudsters will impersonate IRS agents, investors, or bank officials to solicit personal information from seniors. There is a high likelihood of victims’ information being shared with other scammers. Seniors must remember to verify the caller’s identity and resist pressure tactics.
The Pigeon Drop
As explained by LegalMatch, this is how a pigeon drop scam works; “The scammer explains how they just found money and want to share it with the intended victim. However, before they can share the money, the scammer must receive some of the victim’s money.” This happens in person, for example, in a parking lot or mall. The scam targets older people because they are believed to be the most likely to fall for it.
The Fake Accident Scenario
This scam involves an elderly person receiving a phone call claiming that their relative is in an emergency situation and requires immediate funds. Fraudsters often use additional scammers to act as authorities or medical personnel to make the scam more believable. It’s important to verify a situation before sending any money.
Medicare/Health Insurance Scams
Another scam that tends to target older Americans is when a fraudster impersonates Medicare or health insurance representatives to steal personal information from the victim. They may provide evidence of bogus services billed to Medicare or exploit medical trends, such as they did with COVID-19 vaccines.
The Grandparent Scam
In this scam, the fraudsters will impersonate a grandchild in distress who needs financial help. They will pressure the victim to keep the transaction a secret, and the scam often involves payment through untraceable methods like gift cards. As shared by the Federal Communications Commission, “Grandparents often have a hard time saying no to their grandchildren, which is something scam artists know all too well.”
Romance Scams
Senior citizens are also targeted by romance scams, in which scammers create fake profiles to carry out long-term emotional manipulation. After getting to know the victim, they will start making requests for money for emergencies, travel, or investments. This can result in significant financial losses, especially for seniors over 70.
Internet and Email Fraud
Deceptive websites and emails target seniors, aiming to collect their payment information to be used fraudulently. This can be done by selling them non-existent or stolen goods or enticing them with too-good-to-be-true deals. Be sure to take precautions against websites with red flags like low prices and spelling errors.
Employment and Money Mule Scams
Another common scam that targets the older generation is fake job offers requiring payment for training or personal information. Fraudsters are attempting to carry out recruitment for illegal money transfer activities and will entice seniors into unknowingly participating in money laundering.
General Phone Scams
The Federal Trade Commission states, “People lose a lot of money to phone scams — sometimes their life savings. Scammers have figured out countless ways to cheat you out of your money over the phone. In some scams, they act friendly and helpful. In others, they threaten or try to scare you.” Seniors must be wary of the variety of phone scams out there, including free medical offers and IRS impersonations.
Funeral and Cemetery Scams
This type of scam preys on seniors during a vulnerable time, taking advantage of their grief and lack of knowledge about funeral costs and procedures. Scammers may try to sell victims overpriced or unnecessary funeral services and products or make fraudulent claims of debts owed by the deceased to extract money from seniors.
IRS Impersonation Scams
In this scam, fraudsters will pretend to be IRS officials demanding payments and may threaten lawsuits or arrest to coerce victims into handing out personal information. The IRS itself states, “Most scams impersonating the IRS are identity theft schemes. In this type of scam, the scammer poses as a legitimate institution to trick consumers into revealing personal and financial information.”
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