The Federal Bureau of Investigation estimates that every year millions of seniors fall victim to some type of financial fraud or confidence scheme. In fact, statistics gathered by the FBI paint a grim picture. In 2021, there were 92,371 victims of elder fraud costing victims more than $50,000 on average.
While there are many types of fraud and scams out there, there is a common element to each- preying on the elderly because they are viewed as an easy target to acquire their life savings or access to their identity.
Let’s take a look at the most common scams facing seniors today and some helpful tips family members can review to prevent this from happening to their loved one.
Types of Elder Scams
The scams and financial fraud schemes facing seniors run the gambit from medicare and insurance scam calls/mail to telemarketing, fraudulent home repairs and contracting, and IRS/law enforcement scams.
Here are some of the most common to be on the lookout for and educate yourself and your family in order to prevent them from happening to your loved one.
- The Grandparent Scam includes a fraudulent phone call to a senior claiming that a grandchild is in legal, medical, or physical jeopardy and needs money immediately to save them. This scam asks for a credit card number or the grandchild could be in more danger including jail time, death, or kidnapping.
- Sweepstakes and Lottery Scams include the concept that a senior has won the jackpot and now must pay the taxes or fees upfront in order to collect said claim.
- Government Imposter Scams often include the gathering of data and identifying information including a social security number from a senior by claiming to be a government agency such as someone from medicare, insurance, or the social security administration. Once they get personal information from the senior, they can use that to create a false identity.
- Computer Tech Support Scams prey on a senior’s lack of up-to-date knowledge of computers and technology. This scam is usually in the form of an email or pop-up on a computer screen that claims the device is in need of repair and allows access to the computer remotely for repairs. Once the scammer gains access they have the ability to drain bank accounts and create fake identities using the victim's information.
- Robocalls or Phone Scams are also a popular way to trick seniors into creating a voice signature with the word “yes” to an innocuous question and thus make it easier to access their credit card or financial information.
Tips to Prevent Senior Fraud
As loved ones to seniors, we often feel helpless regarding the aging process. There are, thankfully, some ways we can protect our seniors against the financial loss and emotional hardship these types of scams can create.
Here are a few ways to help your loved one avoid these scenarios.
- Regularly call or visit your senior or have a Senior Helper visit with them. Being a part of their life will give you a chance to see what mail is coming in, phone calls are being received, and new friends that are coming into their life. All of this can help protect your senior.
- Sign your senior up for the “Do Not Call” list to avoid telemarketers and make it easy for a senior to say “take me off your call list.”
- Set up safeguards at your senior’s bank and credit cards by putting spending limits on certain accounts, having a second name on each account, and blocking the creation of new accounts.
- Educate your senior about the perils of acting urgently to phone calls and mail that may be a scam. Take time to talk about common scams and always talk to a trusted family member before giving out a credit card or personal information over the phone or on the computer.
Senior Scams are a form of elder abuse. Do not be ashamed but rather report the crime to this 24-hour, toll-free, elder abuse hotline at the Massachusetts Executive Office of Elder Affairs at (800) 922-2275.