Senior Americans lose approximately $3 billion each year as a result of scams. Several reasons make them common targets for fraudulent schemes. To begin with, older adults are naturally more trusting than their younger counterparts, making it easier to manipulate and deceive them. A lack of digital literacy is another factor that makes them particularly susceptible to online fraud.
Moreover, baby boomers have had a longer time to build wealth. So, they would usually have substantial savings put away for retirement. And the more money they have, the more lucrative targets they would become in the eyes of criminals.
But what are the most widespread frauds aimed at seniors, and what measures can help older generations to remain safe? Let’s find out.
Common Scams Targeting Seniors
Retirees are more vulnerable to certain frauds due to specific factors that increase their risk exposure. Here are the most prevalent activities for them to guard against:
Tech support scams
According to the Internet Crime Complaint Center, this type of fraud outnumbers any other reported criminal activity targeting seniors.
It typically begins with a sudden phone call, supposedly from the support team of a tech company, who will insist that the victim’s computer is infected by a virus. The caller will then request permission to remotely fix the device. But when access is granted, they could steal sensitive information from the computer or install spyware to collect personal data.
Telemarketing fraud
Older adults are more comfortable purchasing goods over the phone than online since it is hassle-free and doesn’t involve the complexities of navigating digital stores. This increases their exposure to telemarketing fraud.
Criminals could, for example, offer bogus deals and promotions and steal customers’ credit card information or sell inferior products. They could also provide fake subscriptions, medication, supplements, insurance, and investments that could entice seniors.
Fake sweepstakes and lotteries
This is another common scam targeting retirees that can end up with financial fraud or identity theft. It involves an email, phone call, or message announcing a lottery or sweepstakes win—usually a large amount of money or an attractive reward, such as an all-expense-paid overseas trip.
But to claim the winning, seniors will need to pay a processing fee and taxes upfront with a wire transfer or cash. Or, they may have to provide their bank account numbers, tax file information, and a few more sensitive details.
Romance scams
Social isolation is a natural concern for many single adults as they age. This makes them even more vulnerable to fraudsters as they search for a companion.
Romantic swindles targeting seniors have been steadily rising over the years. Scammers can approach retirees on dating sites, social media, or even in person to express their affection. But these relationships usually end with financial fraud that could cost victims their entire life savings.
Imposter scams
To win trust and steal money, criminals could impersonate individuals or entities familiar to older adults.
For example, in grandparent scams, fraudulent actors could reach out to seniors on the pretext of a grandchild asking for money for an emergency.
They could also pose as a government organization. For instance, they may impersonate Medicare officials and ask elderly victims to verify personal details to ensure continuous Medicare facilities. With the information obtained, scammers could then carry out healthcare fraud and a range of other scams.
Protecting Older Adults From Fraud
The diverse and sophisticated nature of prevalent scams can certainly make anyone anxious. But a few safety practices can help retirees avoid many of these threats.
Take time
Scammers often pressure victims into taking immediate action. Callers who appear threatening, aggressive, forceful, or overly persistent are common red flags of fraudulent behavior. In such situations, the best course of action is to take down the caller’s details and promise to call them back.
Remember, taking a step back is essential for assessing the situation, seeking advice from a loved one, and avoiding costly decisions.
Practice phone safety
Today, there are multiple ways for older adults to identify calls from unsaved numbers—setting up caller ID facilities and searching the number on PhoneHistory are some of the easier methods.
It is also important not to respond to robocalls and unsolicited callers, including telemarketers. A reputed caller ID app is an excellent solution to identify and block these spam and scam numbers.
Share mindfully
Criminals often hunt for identity-related information to target victims for identity scams. Tax file, insurance, social security, and financial data are particularly valuable. Therefore, keeping them safe without readily disclosing them to others is a crucial step to avoid scams.
Store personal documents safely
Baby boomers usually prefer to keep paper copies of their bank and credit card statements, medical prescriptions, tax claims, and similar documents that bear identifiable information. If there is a need to maintain these in hard copy format, storing them securely in a safe location is crucial.
Keep devices safe
A smartphone carries far more information than the regular mobile phone the older generations used a few decades back. But these sophisticated devices are more prone to malware and data-collection threats.
Some of the essential security measures to prevent and mitigate these risks include:
- Locking the screen with a secure password.
- Installing a virus guard.
- Enabling auto updates for software.
- Checking app permissions before installing mobile applications.
- Deleting browser history.
- Disabling password-saving and auto form-fill options on the browser.
The above also applies to personal computers, laptops, and similar devices.
Protect financial wealth
Romance scams, IRS fraud, charity imposters, and fake investments all focus on swindling money from retirees. Therefore, seniors must be extra careful about protecting their life savings from scammers.
Payment methods that are hard to trace or reverse are the most common telltale sign of a fraudulent scheme. Older adults should be particularly cautious of anyone asking for payment via wire transfers, cash, prepaid debit cards, or gift cards.
Final Thoughts
The world elderly Americans live in today is significantly different from the one they grew up in. As a result, they could often struggle to keep up with and adjust to some of the dramatic changes taking place around them. This makes them extra prone to scams and fraud.
If you have elderly loved ones, help them understand the prevalent threats and identify signs that could give away fraudulent behavior. It is also important to teach them the basics of online safety, so they can navigate the digital environment confidently and securely.
