4 Common Elder Scams: How to Stay Safe and Fight Back

Elder fraud continues to be a growing problem, with millions falling victim to scams every year. Know the common signs that signal trickery and what to do if you or a loved one is being scammed.

Over two million older adults fall victim to elder fraud every year. The elderly population has long been a target of fraud for many reasons. For one, many are trusting and may have decreased cognition from health issues. Scammers also know that many of these people have retirement accounts with money to spare—or, conversely, are on a budget and likely to jump on a chance at a windfall.

Experts believe, however, that many more elderly victims go unreported. Some may not realize the fraud until a family member or caregiver steps in. Many are embarrassed when they discover they have been a scam victim, so they hide the facts from their loved ones. The median amount lost by victims over 80 years old is $1,700.

It's difficult to detect when you are being victimized. Many scams target older people, and awareness is the first step in protecting yourself or your loved ones. Here are some of the most common elder scams and tips on how to combat them.

1. Medicare and Social Security Scams

Scammers misrepresent these government programs to trick elderly victims into sharing personal information. Sometimes, they may pretend to be a Medicare representative and ask for the victim's information and Medicare number, which they then use to commit fraud. In other cases, they may ask for bank account information to steal the money.

The same happens with Social Security—many scammers pose as representatives who promise to improve benefits. They may ask the victim for money for these services or simply extract enough information to deposit the benefits into the scammers' accounts.

What to do: It is essential to know that Medicare and Social Security will never call you to sell you anything. The agencies will only contact you for personal information if you have called them first. If you are unsure about a call, hang up and call the agencies directly. Also, ensure you check Medicare and Social Security statements regularly for anything unusual

2. Sweetheart Scams

Unfortunately, many lonely or widowed adults fall victim to sweetheart scams every year. Here, scammers pose as a love interest online, form a relationship with the victim virtually, express their love…and then ask for money. Since there is now an established relationship and the victim sees the scammer as a significant other, they often send the comply. By the time a family member intervenes or the older adult realizes their paramour is a fake, it is incredibly challenging (and exceedingly rare) to get the assets back. Often, the amount of money sent can total thousands of dollars.

What to do: If you meet someone online, it is essential to find out if they are who they say they are. It is a red flag if an online friend does not want to meet in person or use video chat. If you think a loved one has fallen victim to this scam, be empathetic and try to ask more questions. Asking for power of attorney can grant you easier access to their accounts so you can check for anything suspicious.

3. Grandparent Scams

A popular scam directed at the older generation is the grandparent scam. In this scam, an imposter pretends to be the victim's grandchild or a captor holding the grandchild hostage and demands a ransom for the "grandchild's" release. The grandparent often transfers the money immediately to ensure their grandchild's safety before realizing the scam. Reports have found this scam makes the most money on average for the scammer—nearly $9,000.

What to do: If you receive a phone call like this, the first thing to do is to remain calm. While the thought of a grandchild being in trouble is frightening, it is vital to confirm the situation. Before you send any money:

1. Try calling the grandchild or the parent directly to see if they are in trouble.
2. If you discover the call is a scam, report the phone number to your local police.
3. If you send money and later discover the fraud, file a police report.

4. Phishing and Telemarketing Scams

Older adults are often victims of various phishing and telemarketing scams. Whether via email or over the phone, these scams usually ask victims to share personal information such as name, address, birth date, or banking information (among other items). The scammers can then use this information to impersonate the victim or steal funds. Older adults uncomfortable with technology may quickly click on malicious links that download malware or expose information.

What to do: If you receive a phone call asking for personal information, verify who is on the other line. If you need clarification, hang up and call the institution directly (this is the recommendation even if you think you know the person). When using email, do not click on any links or open attachments in an unsolicited email. Even if you know the sender, think twice before you click.

If you are concerned about a loved one falling victim to a scam, educate them on checking emails for fraudulent links.

Stay Safe

The first step in protecting yourself is understanding that these scams exist. Awareness allows you to think twice before taking action via phone or email. If you believe you may be a scam victim, confide in a family member or friend you trust. You should also contact your local law enforcement. Remember, the design of these scams is to trick you, so do not be embarrassed.

If you care for a loved one that you think may have been scammed, approach the topic calmly and clearly. The victim may feel defensive or embarrassed, so it is essential to be mindful. Again, contact law enforcement and the victim's bank if there was any asset movement. Be sure to share some common scams with them as a preventative method.

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