How to Spot Scams Targeting Older Adults

Technology brings people together and makes managing your finances easier and faster. It can also open the door to target victims – especially older adults. These scams, known as elder fraud, can have serious consequences.

Elder fraud occurs when scammers take advantage of the trust of senior citizens. Older adults might be targeted because they have income from social security and retirement accounts. They’re also often less likely to keep up with new technology, making them more vulnerable to robocall and phishing scams.

In most cases, it’s impossible to recover money lost through elder fraud. However, the dangers don’t stop there. Falling prey to a scam can put your identity at risk and cause feelings of shame and embarrassment. What’s even worse is that elder fraud is more common than ever.

To protect yourself and your older loved ones, learn about these scams and take steps to avoid them.

5 Common Types of Elder Fraud

Scammers are known to exploit older adults’ trust, compassion and desire for financial security. Look out for these 5 types of fraud that commonly affect seniors.

1. Tech support scams

Tech support scams target older adults who don’t fully understand technology and computer software. Scammers might pretend to be well-known tech companies like Apple, Microsoft or antivirus providers. 

These scammers want the victim to pay money or download a software to “fix” a virus that doesn’t exist. This software is actually harmful and can help the scammer gain access to the computer and the victim’s personal information.

2. Grandparent and romance scams

Older adults tend to trust others, especially people who are close to them. Fraudsters use this trust to pull on their heartstrings in grandparent or romance scams.

In grandparent scams, scammers impersonate a grandchild in distress. They might request that the victim transfer money to help with legal issues or medical emergencies. 

Romance scams are similar. The scammer might build an emotional connection to an older adult on an online dating platform. Many scammers will invest time into developing a close relationship before faking a crisis and asking for financial help. 

3. Medicare/healthcare fraud

Seniors are also targeted with fraudulent offers related to healthcare and Medicare. Scammers might pretend to offer free medical equipment, “miracle” cures or special Medicare plans.

They might also pose as the victim’s healthcare provider or the Medicare office, claiming there was an issue with their account. They use these tactics to steal personal information or payment. 

4. Government impersonation

It’s also common for fraudsters to impersonate other government organizations like the IRS or Social Security Administration. They might claim that an older adult’s SSN is compromised or that they owe unpaid taxes. 

Again, the goal of these scams is to collect payment or sensitive personal information like their SSN or banking information. 

5. Investment scams

Scammers use older adults’ desire for financial security to con them out of money with fake investments. These scams might look like real estate deals, retirement plans or cryptocurrency.

In many cases, the investments that scammers promote don’t exist at all. Instead, seniors are sending money that gets stolen, with no return whatsoever.

Recognizing and Avoiding Senior Scams

To avoid elder fraud, it’s important to stay well-informed and keep an eye out for red flags. Use these practical tips to recognize scams and avoid becoming a victim.

• Don’t pay with cash or gift cards. Scam artists usually ask for odd payment methods like gift cards because they’re hard to trace. Cash, gift cards and wire transfers are almost impossible to reverse. Don’t pay with these methods if someone requests them.
• Hang up and call back. Scammers can “spoof” the phone number they call from and pretend to be someone they’re not. Don’t trust caller ID. If the person on the other line asks for payment or personal information, hang up. Research the contact information on your own and call back to verify the request.
• Don’t click on strange links. Many scammers use fake links to steal personal information or money from seniors. Don’t click on any links in text messages or emails if you can’t verify the sender.
• Protect personal information. Avoid sharing sensitive information, such as SSNs, bank account details or passwords. Remember that legitimate organizations won’t ask for this information over the phone or email. 
• Take your time. Scammers like to pressure victims to make quick decisions. Government agencies won’t do that. They’ll answer questions and walk you through the process. Take your time to do research and think things through, especially if you’re making an investment or financial decision.
• Trust your instincts. Fraudsters will create urgency, try to scare their victims or manipulate their emotions. If an offer or request feels too good to be true or creates a sense of unease, then trust that gut feeling to avoid the scam.
• Stay informed. Information is an older adult’s best defense against elder fraud. Thankfully, there are many ways to stay up to date on common scams. Check the IRS, Federal Trade Commission and Consumer Finance Protection Bureau for new fraud types and their warning signs. 

Navy Federal Credit Union Is Your Partner in Financial Security

You’re not alone in the fight against fraud. Navy Federal offers educational resources and security features to help protect older adults. By staying up to date on the latest scams, seniors can avoid dangerous situations online. If you or a loved one think you’ve been the victim of elder fraud, we’re here to help. Contact us to report fraud and restore your financial security.