12 Common Senior Citizen Scams and How to Protect Your Loved One

Older adults lose billions of dollars each year to scams and fraud. According to the FBI 2021 report, Americans over 60 experience the highest financial loss reported out of any American age group, and an American Journal of Public Health estimate found that at least five percent of this population is victimized by scammers annually.

Why Scammers Target Seniors

Scammers target mature adults because they often have accumulated substantial wealth over their lifetimes, and con artists expect that the elderly will be easy to confuse or trick. Devastating scam loss targets both wealthy and low-income older adults.

Seniors are also less likely to report a scam attempt, out of embarrassment or fear that those who care for them will think they are less capable. Many older adults are left in a vulnerable position with little time to recoup their losses, and the stress of a significant loss can push underlying health issues to the front.

Make sure you and your loved ones keep an eye out for these 12 common scams.

1. Elder Financial Abuse

Strangers are not the only ones to perpetrate these crimes. Elder financial abuse is when the victim knows and trusts a person such as a family member, close friend, or caregiver. They may trick their victim into signing over assets or even power of attorney, or threaten to withhold care if the elder refuses.

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 it's 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.

2. Romance and Sweetheart Scams

Isolated, lonely seniors may quickly become attached to an unscrupulous character who shows them love and attention. When their new best friend comes to them with a sad story about a debt or other made-up emergency, the victim is often all too happy to hand over whatever they can. Please take a look at this excellent resource on romance scams stealing millions from unsuspecting seniors.

Take notes when speaking on the phone or online, especially if conversations take a romantic turn, and learn how to be aware of fraud and report fraud.

3. Medicare and Government Imposter Scams

Government imposter scams are common because nearly everyone over 65 qualifies for Medicare. Perpetrators may pose as a Medicare representative to get older people to give them their personal information, then use it to bill Medicare and pocket the money. Other scammers call claiming to be a member of a government agency and demand passwords, Social Security numbers, or other personal data in order to avoid potential fines or jail time.

If someone claiming to represent your health insurance provider calls and asks for your personal information, tell them you'll call back later, but don't call the number they provide. Look it up for yourself, then call and report a possible scam.

4. Counterfeit Prescription Drugs

Most commonly, counterfeit drug scams operate on the Internet, where seniors increasingly go to find better prices on specialized medications. 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 and Cemetery 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.

Disreputable funeral homes may also add unnecessary charges, such as insisting on an expensive casket even for a direct cremation, which can be accomplished with a cardboard casket.

6. Snake Oil and Fraudulent Anti-Aging Products

If you were suffering from chronic pain, you might be willing to try anything to keep it at bay. But if something sounds too good to be true, then it probably is. Be wary of advertisements for cure-all panaceas the doctors supposedly don't want you to know about. There's probably a good reason your physician hasn't recommended them before.

The desire to be youthful also puts us at risk. 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: renegade labs create versions of the real thing, possibly working with the same root ingredient, botulinum neurotoxin, one of the most toxic substances known to science. A bad batch of Botox can have health consequences far beyond wrinkles or drooping neck muscles. Here is an article from the FDA on identifying Faux-Tox. And be sure to get the skinny on skin products before you buy.

7. Telemarketing and Charity Scams

Perhaps the most common scheme is when scammers use fake telemarketing calls and robocalls to prey on older people, who as a group make twice as many purchases over the phone as the national average. With no face-to-face interaction, and no paper trail, these scams are incredibly hard to trace. Examples of telemarketing fraud include:

• The pigeon drop: The con artist tells the individual that he or 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 or her bank account.
• 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 and donation scams: Your elderly loved one gets a call or email from a benevolent non-profit charity, asking if they would like to donate to a worthy cause. Once they give out their credit card or checking account information, the scammer, whose only charity is themselves, gets to work emptying out their bank account. Learn more about charity scams.

8. Internet Fraud and Tech Support Scams

The slower speed of adoption among some older people makes them easier targets for automated Internet scams. Pop-up windows try to scare victims into paying to remove a nonexistent computer virus, or into downloading an actual virus. Other common online scams involve email messages that appear to be from a legitimate company or institution, or from the IRS about a tax refund, asking the senior to "update" or "verify" their personal information.

In tech support scams, someone posing as a tech support rep from a legitimate company such as Microsoft or Apple calls and tries to convince you that even if your computer seems fine, it's actually infected with a dire piece of malicious software. To fix it, they'll ask to operate your computer remotely. Once in control, they can help themselves to financial data or hold your data hostage until you've paid a substantial fee. If you get an unexpected call like this, don't follow the caller's directions!

9. Investment Schemes and Shady Financial Advisors

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 to fables of a Nigerian prince looking for a partner to claim inheritance money, investment schemes have long been a successful way to take advantage of older people.

Guard your nest egg carefully and be picky when choosing a financial advisor. Go with someone who comes highly recommended by someone you trust, and read what other customers have to say about their experiences. Also, pay close attention to your monthly statements. Even at reputable firms, one bad actor can deplete your life savings.

10. Homeowner and Reverse Mortgage Scams

Scammers like to take advantage of the fact that many people above a certain age own their homes, a valuable asset that increases the potential dollar value of a scam. In one property tax scam, fraudsters sent official-looking letters on behalf of a County Assessor's Office offering, for a fee, to arrange a reassessment of the property's value.

Closely related is the reverse mortgage scam. As legitimate reverse mortgages have become more popular, scammers are taking advantage. As opposed to official refinancing, 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 and Lottery Scams

We'd all love to have a spare million dollars in our bank accounts. In sweepstakes and lottery scams, scammers inform their mark that they have won a lottery or sweepstakes of some kind and need to make some sort of payment, such as a handling fee, tax, or show of good faith, to unlock the supposed prize. The sweepstakes is fictitious.

Often, seniors are sent a check to deposit that shows up in their account immediately but takes a few days to be rejected. During that time, the criminals collect money for supposed fees or taxes, and the victim loses the "prize money" as soon as the check bounces.

12. 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 say something along the lines of: "Hi Grandma, do you know who this is?" The unsuspecting grandparent guesses the name of the grandchild who the scammer most sounds like, and now the scammer has established a fake identity without having done a lick of background research.

Once "in," the fake grandchild will usually ask for money to solve some unexpected financial problem (overdue rent, car repairs, etc.), paid via Western Union or MoneyGram. At the same time, the scam artist will beg the grandparent, "please don't tell my parents, they would kill me." Some of these scammers are quite sophisticated, and may mine your social media accounts for personal information they can use to lend credibility to their assumed identities. Always set your social media profiles to private, and don't accept requests from people you don't actually know.

How to Protect the Seniors in Your Life

Just about anyone can fall victim to these scams. Here is what you can do to help:

• Urge your senior never to give out private personal data like Social Security numbers, passwords, or credit card info over the phone or email.
• If they get a scary email or phone call, or one with an offer that seems too good to be true, have them call you first before letting any money or sensitive information change hands.
• If they will let you, make a habit of checking their financial statements each month so you can be alerted to any suspicious activity.
• Registering them with a credit security agency may not be a bad idea, either.
• If they do fall victim to an online scam, or think they have, they can contact the FBI Internet Crime Complaint Center.
• Get tips to protect yourself and your money, keep your money secure, and report financial fraud with our friends at NCOA.

At Golden Placement Services, we believe seniors are happier and function better when they are part of a community. Our specialists are real people, and we provide curated professional resources at no cost to you or your family. When you need help finding the right placement for your senior loved one, call us at 503-723-7145 or contact us today.