12 Alarming Senior Citizen Scams
What You Need to Know about Common Senior Citizen Scams
According to the FBI 2021 report, Americans over 60 experience the highest financial loss reported out of any American age group. Targeting seniors for financial scams seems to have become so prevalent that they’re now considered “the crime of the 21st century.” Many scammers believe seniors have a significant amount of money sitting in their accounts. Financial scams often go unreported since they’re considered a “low-risk” crime, therefore can be difficult to prosecute. Many older adults are left in a vulnerable position with little time to recoup their losses.
The stress of a significant loss to a scam can push underlying health issues to the front. Devastating scam loss targets both wealthy and low-income older adults. Oddly strangers are not the only ones to perpetrate these crimes. Reported 90% elder abuse is committed by the elders’ own family members, most often their adult children, followed by grandchildren, nieces and nephews, and others. Most importantly we will help you can steer clear of potential scams as you review our list below. Elder fraud is any scam that targets older adults and exploits them for monetary gain, such as financial fraud or identity theft.
1. Elder financial abuse
Elder financial abuse
How it works: Elder financial abuse is when the victim knows and trusts a person such as family member, close friend, or caregiver. This happens when the abuser tries to gain access to the elder’s savings, credit, or assets. They tend to trick their victim into signing over assets or give access to resources or even power of attorney. Abusers might even threaten to withhold care, friendship or threaten other family members if the elder refuses to give access.
Warning signs of elder financial abuse:
- Unfamiliar bank transactions or charges.
- New accounts and loans, or credit inquiries that you or your elderly loved one didn’t make.
- Calls from companies or credit providers about debt you didn’t take out.
- An elderly parent or grandparent has unexpected financial struggles.
What to Do: If you or a family member accidentally give scammers personal data (or its leaked in a data breach), they could take out loans in your name or empty your bank account. Try an identity theft protection service to monitor your finances and alert you to fraud.
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2. Romantic Catfishing Scam
Elder romance scams saw a very high total in the 70 year and above age bracket. Please take a look at this excellent resource stealing millions from unsuspecting seniors. Do not allow your vanity to drive you into a counterfeit romance. This would be a great folly. Instead we need to act wisely, take notes when speaking on the phone or online most especially if conversations begin to take a romantic turn, learn how to be aware of fraud and report fraud.
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3. Health Care/Medicare/Health Insurance Fraud
Government imposter scams Every U.S. citizen or permanent resident over age 65 qualifies for Medicare, so there is rarely any need for a scam artist to research what private health insurance company older people have in order to scam them out of some money. In these types of scams, perpetrators may pose as a Medicare representative to get older people to give them their personal information, or they will provide bogus services for elderly people at makeshift mobile clinics, then use the personal information they provide to bill Medicare and pocket the money.
4. Counterfeit Prescription Drugs
Most commonly, counterfeit drug scams operate on the Internet, where seniors increasingly go to find better prices on specialized medications. This scam is growing in popularity—since 2000, the FDA has investigated an average of 20 such cases per year, up from five a year in the 1990s. The danger is that besides paying money for something that will not help a person’s medical condition, victims may purchase unsafe substances that can inflict even more harm. This scam can be as hard on the body as it is on the wallet.
5. Funeral & Cemetery Scams
Funeral scams The FBI warns about two types of funeral and cemetery fraud perpetrated on seniors. In one approach, scammers read obituaries and call or attend the funeral service of a complete stranger to take advantage of the grieving widow or widower. Claiming the deceased had an outstanding debt with them, scammers will try to extort money from relatives to settle the fake debts. Another tactic of disreputable funeral homes is to capitalize on family members’ unfamiliarity with the considerable cost of funeral services to add unnecessary charges to the bill.
In one common scam of this type, funeral directors will insist that a casket, usually one of the most expensive parts of funeral services, is necessary even when performing a direct cremation, which can be accomplished with a cardboard casket rather than an expensive display or burial casket.
6. Fraudulent Anti-Aging Products
Be sure to get the skinny on skin products before you buy. In a society bombarded with images of the young and beautiful. Let’s not be surprised that a few of us older people feel the need to conceal our age. Why? Possibly to participate more fully in social circles and the workplace. After all, 60 is the new 40, right? Color out our grey. Find a great moisturizer to get rid of crepe-paper like skin. Feel better looking in the mirror. Naturally, many Americans seek out new treatments and medications to maintain a youthful appearance.
This desire to be youthful is putting us at risk of scammers. Whether it’s a real threat of fake Botox, or faux homeopathic remedies, there is money in the anti-aging business. Botox scams are particularly unsettling. Surprisingly, renegade labs create versions of the real thing which possibly working with the same root ingredient, botulism neurotoxin. This ingredient is one of the most toxic substances known to science. Let’s not delude ourselves a bad batch of Botox can have health consequences far beyond wrinkles or drooping neck muscles. Be sure, be aware! Here is an article from the FDA on identifying Faux-Tox.
7. Telemarketing
Robocalls and phishing messages Tech support scams Perhaps the most common scheme is when scammers use fake telemarketing calls to prey on older people, who as a group make twice as many purchases over the phone than the national average. While the image of the lonely senior citizen with nobody to talk to may have something to do with this, it is far more likely that older people are more familiar with shopping over the phone, and therefore might not be fully aware of the risk. With no face-to-face interaction, and no paper trail, these scams are incredibly hard to trace. Also, once a successful deal has been made, the buyer’s name is then shared with similar schemers looking for easy targets, sometimes defrauding the same person repeatedly. Examples of telemarketing fraud include:
“The Pigeon Drop”
The con artist tells the individual that he/she has found a large sum of money and is willing to split it if the person will make a “good faith” payment by withdrawing funds from his/her bank account. Often, a second con artist is involved, posing as a lawyer, banker, or some other trustworthy stranger.
“The Fake Accident Ploy”
The con artist gets the victim to wire or send money on the pretext that the person’s child or another relative is in the hospital and needs the money.
“Charity Scams”
Money is solicited for fake charities. This often occurs after natural disasters. Charity scams
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8. Internet Fraud
Online shopping scams While using the Internet is a great skill at any age, the slower speed of adoption among some older people makes them easier targets for automated Internet scams that are ubiquitous on the web and email programs. Pop-up browser windows simulating virus-scanning software will fool victims into either downloading a fake anti-virus program (at a substantial cost) or an actual virus that will open up whatever information is on the user’s computer to scammers. Their unfamiliarity with the less visible aspects of browsing the web (firewalls and built-in virus protection, for example) make seniors especially susceptible to such traps.
One example includes: Email/Phishing Scams A senior receives email messages that appear to be from a legitimate company or institution, asking them to “update” or “verify” their personal information. A senior receives emails that appear to be from the IRS about a tax refund.
9. Investment Schemes
False investment schemes Because many seniors find themselves planning for retirement and managing their savings once they finish working, a number of investment schemes have been targeted at seniors looking to safeguard their cash for their later years. From pyramid schemes like Bernie Madoff’s (which counted a number of senior citizens among its victims) to fables of a Nigerian prince looking for a partner to claim inheritance money to complex financial products that many economists don’t even understand, investment schemes have long been a successful way to take advantage of older people.
10. Homeowner/Reverse Mortgage Scams
Reverse mortgage scams Scammers like to take advantage of the fact that many people above a certain age own their homes. Owning a home is a valuable asset that increases the potential dollar value of a certain scam. A particularly elaborate property tax scam in San Diego saw fraudsters sending personalized letters to different properties apparently on behalf of the County Assessor’s Office. The fake letter, made to look official but displaying only public information, would identify the property’s assessed value and offer the homeowner, for a fee of course, to arrange for a reassessment of the property’s value and therefore the tax burden associated with it.
Closely related, the reverse mortgage scam has mushroomed in recent years. With legitimate reverse mortgages increasing in frequency more than 1,300% between 1999 and 2008, scammers are taking advantage of this new popularity. As opposed to official refinancing schemes, however, unsecured reverse mortgages can lead property owners to lose their homes when the perpetrators offer money or a free house somewhere else in exchange for the title to the property.
11. Sweepstakes & Lottery Scams
Sweepstakes and lottery scams This simple scam is one that many are familiar with, and it capitalizes on the notion that “there’s no such thing as a free lunch.” Here, scammers inform their mark that they have won a lottery or sweepstakes of some kind and need to make some sort of payment to unlock the supposed prize. Often, seniors will be sent a check that they can deposit in their bank account, knowing that while it shows up in their account immediately, it will take a few days before the (fake) check is rejected. During that time, the criminals will quickly collect money for supposed fees or taxes on the prize, which they pocket while the victim has the “prize money” removed from his or her account as soon as the check bounces.
12. The Grandparent Scam
The grandparent scam The Grandparent Scam is so simple and so devious. It uses one of older adults’ most reliable assets, their hearts. Scammers will place a call to an older person and when the mark picks up. First, they will say something along the lines of: “Hi Grandma, do you know who this is?” Next, the unsuspecting grandparent guesses the name of the grandchild who the scammer most sounds like. Now the scammer has established a fake identity without having done a lick of background research.
Once “in” the fake grandchild (really the scammer) will usually ask for money which is said to solve some unexpected financial problem (overdue rent, payment for car repairs, etc.). How do they actuate it? Paid via Western Union or MoneyGram, which don’t always require identification to collect. At the same time, the scam artist posing as the grandchild will beg the grandparent “please don’t tell my parents, they would kill me.” Sums from such a scam total in the hundreds coupled with no research on the part of the scammer makes this a scam easy to perpetuate.
Scammers even target finding Housing for Mom or Dad:
In conclusion, Golden Placements is tried and true! Specialists at GPS are real people. We provide curated professional resources to you at no cost to you or your family. We are paid after finding your best living situation by the homecare organization, adult home or facility you choose. You can enjoy your best Golden Years using our years of experience to find the right Senior Life with one of our Specialists. Portland Senior Living information are quicky identified in a short phone call at NO COST. Community living and finding the right living choice for you or your loved one is important. We help you navigate the details. Here are more resources to help you learn more about our services:
- You can call us today or continue to read more about Long Term Care Planning with our friends at ACL
- Oregon Defines and Describes ADLs for us legally here: Long Term Care
- Golden Placements RESOURCES to find CARE Services
- Quality locations for you Senior Loved One with the Golden Girls
- Senior Living Near Me – Adult Home Placement
- Explore Residential Care Homes for Elderly “near me”
Diane Delaney, Placement Specialist Extraordinaire
Delaney is the founder of Golden Placement Services. She began this business with a healthy dose of compassion for helping families make educated decisions regarding senior placement. Focused to relieve stress in uncertain senior housing crucial moments. Diane brings about loving change of lifestyle with grace. Additionally, Diane is an accomplished executive manager, Director of Operations in senior housing. Emphatically, she enjoys sharing her experience. Diane enjoys writing about the full spectrum of the transition process for seniors and family members. Read more from Senior Placement Specialist Diane: Ultimate Senior Living Resource Guide >>
LaVona Tomberlin, Senior Placement Specialist
Tomberlin brings a high level of education and experience to you as your Senior Placement Specialist at GPS. She loves writing about improving the lives of Elderly working in private care and in-home care for over 36 years. Geriatrics, Memory Care. Plus, she holds Master of Psychology Behavioral Health with the goal of advocating for those who needed a voice. Basically, LaVona believes helping the families make good decisions. She can help relieve stress in uncertain times making life worthwhile! Learn More: Read articles from Placement Specialist LaVona: End of Life Transition a heart felt Guide >>
