Financial scams are an increasingly common concern across all age groups, but older adults may experience more frequent messages from bad actors. While these situations can feel overwhelming, understanding how financial scams targeting seniors work (and what to look for) can help families feel more empowered as they take steps to mitigate risks.
Why Do Financial Scammers Target Seniors?
Scammers will try to exploit people of any age and income level, but older people (ages 60+) are common targets of certain types of financial scams. There are a few reasons why bad actors may focus on older demographics, including:
- Older adults may be more likely, compared to younger age groups, to answer phone calls or emails with unfamiliar contacts, creating more opportunities for fraudulent outreach.
- Many scam artists believe (whether or not it is true) that older people have more money or assets from homeownership, retirement nest eggs, and government benefits.
- Scam artists may believe (whether or not it is true) that older adults are less likely to be familiar with current technology and online safety practices, making them potentially more vulnerable to cybersecurity attacks.
- Some bad actors believe (whether or not it is true) that older individuals are easy targets because they may experience age-related cognitive decline or some other type of cognitive impairment.
Common Scams Targeting Older Adults
The FBI reports that the following are common financial scams targeting the elderly, although they can affect people of any age group.
Romance Scams
What they are: Romance scams often begin through social media, dating platforms, or email. A scammer builds a relationship with the prospective victim over time and eventually requests money, gifts, or other forms of financial assistance.
How to spot them:
- Requests for money after a short period of time.
- Reluctance to meet in person.
- Inconsistent personal details.
Phishing Scams
What they are: Phishing emails or text messages are messages that are seemingly from financial institutions, utility providers, or other trusted sources. However, they are actually from a scammer looking to collect personal or financial information.
How to spot them:
- Messages that create urgency.
- Suspicious links.
- Requests for bank account numbers, login credentials, or other sensitive data.
Sweepstakes Scams
What they are: These scams claim that the recipient has won a prize, but must pay a fee or provide financial details to receive it.
How to spot them:
- Requests for payment before the “winner” can claim a prize.
Grandparent Scams/Impersonation Scams
What they are: A popular type of imposter scam, a bad actor impersonates a grandchild or other relative in distress, asking for immediate financial help like money for “bail.” Some scammers use artificial intelligence to mimic a loved one‘s voice, making these scams particularly convincing.
How to spot them:
- Urgent requests for money.
- Pressure to act quickly.
- Avoidance in verifying the story.
Lottery Scams
What they are: Similar to sweepstakes scams, these scams involve claims of winning a lottery, often from another country, with a request to pay fees upfront.
How to spot them:
- Unexpected notifications of winnings.
- Requests for payment or personal details, such as Social Security numbers.
Medicare Scams
What they are: Scammers pose as Medicare representatives to obtain personal information, or they send a fake bill for services that were never provided.
How to spot them:
- Requests for Medicare numbers.
- Unsolicited offers for medical equipment or services.
Website Pop-up Scams/Tech Support Scams
What they are: Pop-up messages claim that a device has a virus and prompt the user to call a support number; this number gets the user in contact with the scammer, who requests payment to “fix” the issue or requests remote access to the user’s device.
How to spot them:
- Unexpected alerts urging immediate action.
- Alarmist messages requesting payment for technical support.
Law Enforcement Scams
What they are: Scammers impersonate police or government agencies and claim that the individual owes fines or will face legal consequences like arrest.
How to spot them:
- Demands for immediate payment, especially through gift cards or wire transfers.
Social Security Administration Scams
What they are: These scams involve bad actors impersonating Social Security officials to request personal information, like credit card numbers, or direct payments.
How to spot them:
- Threats about benefits being suspended.
- Requests for payment to resolve an issue.
How to Protect an Aging Loved One from Fraudsters
Know the warning signs of suspicious activity
Unusual account activity, unexpected requests for money, or sudden changes in communication habits can be potential warning signs that a loved one is being targeted by a bad actor. Staying aware of these changes can help families identify issues early.
Report scammers to the proper authorities
If a scam is suspected, reporting it may help limit further activity.
Resources such as the
- National Elder Fraud Hotline,
- Internet Crime Complaint Center (IC3), and
- Federal Trade Commission (FTC.gov)
provide information on how to report incidents.
Sign family members up for autopay
Automatic bill payments can reduce the need to share financial information frequently and may limit exposure to certain types of scams.
Install malware protection software
Security software can help identify potentially harmful websites or downloads, as well as provide an added layer of awareness when using devices.
Add loved ones‘ names to the National Do Not Call Registry
Registering phone numbers may help reduce the number of unsolicited calls, including some that could be associated with scams.
Install pop-up protection software
Pop-up blockers can reduce exposure to misleading alerts and online scam attempts.
Educate loved ones on popular scams
Regular conversations about current scam trends can help older adults feel more prepared to recognize suspicious situations and respond thoughtfully.
FAQs
What are the scams for elder financial exploitation?
Common scams focusing on older Americans may include:
- Impersonation scams
- Phishing emails
- Romance scams
- Lottery or sweepstakes scams
What can older adults do to avoid scams?
Staying informed about common scam tactics (e.g., creating a sense of urgency and refusing to verify details), verifying unexpected requests, and taking time before responding to urgent messages can help reduce the likelihood of engaging with scams.
How common are scams targeting older adults?
According to the FBI, scams targeting older individuals are common, resulting in billions of dollars in losses annually.
What is Project S.A.F.E. (Stop Adult Financial Exploitation)?
Project S.A.F.E. refers to initiatives focused on increasing awareness, education, and reporting of financial exploitation involving older adults, often supported by community organizations and law enforcement partnerships.
How can I protect my elderly parents from financial scams?
Ways to help protect aging parents from possible scams include:
- Open conversations
- Shared awareness of common scams
- Familiarity with trusted resources
Empowering Yourself & Loved Ones with Knowledge
Staying informed about common scams targeting seniors and how they operate can help older adults and their families feel more prepared when encountering suspicious situations. While scams continue to evolve, awareness can play an important role in recognizing—and mitigating—potential risks.
Disclaimers: This article is for informational purposes only. This article does not constitute professional, legal, or financial advice, expressed or implied.