When scammers fraud parents, grandparents, and those from the elderly community, they commit elder fraud. In fact, Americans aged 60 and older lost over $1.6 billion to fraud in 2021. Scammers often take advantage of those who aren’t tech-savvy, so familiarizing with scams can prevent the fraud from being successful. Cybersecurity expert Brandon King from Home Security Heroes compiled a list of tips to spot and prevent fraud.
Elder Fraud and The Targets
Scammers commit elder fraud by tricking them into giving sensitive information or offering fake financial benefits. Sadly the perpetrators can be strangers or those they know like family, friends or colleagues. Victims can lose their savings and suffer devastating consequences.
Older adults are a prime target for fraud. Scammers normally target victims in retirement or close to retirement as they have a steady income, excellent credit history and more savings than younger people.
The most common scams to look out for:
- Grandparent scams: Scammers pose as the victim’s grandchild to trick seniors into sending money urgently for emergency expenses, such as overdue rent or car repairs. They often ask for secrecy. For example, an elderly woman in Ohio was scammed of $20,000 by someone posing as law enforcement in 2019.
- Romance scams: These scams often target women 50 and above, but men can be victims too. Scammers usually target seniors who have lost their spouse and are looking for companionship. An example is when perpetrators request money transfers or gift card vouchers sent to be sent to an email address.
- False charity scams: Scammers may pose as representatives from a real charity or create fictitious charity organizations. They can make calls, text, or send emails. In some cases, they may even visit seniors in person. False charity schemes commonly happen after a significant event, like a health crisis, global socio-political campaigns, or a natural disaster.
- Medical scams: Seniors may feel overwhelmed by Medicaid, Medicare, the Affordable Care Act, and the complexity of the healthcare system. Unfortunately, this makes them vulnerable to criminals. Scammers may impersonate Medicare representatives to entice seniors into disclosing personal information like Social Security numbers.
Other Common Types
Scammers use various methods to steal personal information and money. Some other scams include fake medical schemes, investment scams, and phishing emails, taking advantage of the complexity of the healthcare system and seniors’ fixed income.
Seniors and their relatives should research charities, verify emails and phone calls, and be cautious of unsolicited requests for money or personal information. Additionally, seniors should beware of insurance coverage scams, romance scams, government impersonation, sweepstakes and lottery scams, identity theft, and tech support scams. Taking precautions and being aware of these scams helps prevent them.
Tips to prevent seniors from being scammed
- Stay connected to loved ones and prevent isolation, which makes them more vulnerable to scams.
- Never let them share sensitive information, and explain why.
- Help them create strong, unique passwords and avoid reusing them.
- Limit online shopping to trusted retailers and check for secure websites.
- Remind them to never click on suspicious links in emails, social media messages, texts or take calls from fake caller IDs.
- Monitor monthly banking statements for signs of identity theft or unauthorized accounts. Shred statements before disposing of them.
- Protect social media accounts by only accepting friend requests from people they know, updating privacy settings and using multi-factor authentication. Delete messages from strangers and avoid odd payment types.
- Encourage parents to name you as a Trusted Contact Person to speak with their financial advisors if there are concerns.
- Warn other family and friends if loved ones experience a scam attempt. Discuss how to prevent fraudulent attempts in the future.
If Elder Fraud Occurs
If an elderly person you know has been scammed, don’t panic, and stay calm. Document everything that has happened, including phone call logs, text messages, and emails, and report the scam to the Federal Trade Commission (FTC) and the person’s bank and credit card providers. File a report with the local police, and change all passwords to stronger ones, including social media accounts and investment profiles, setting different passwords for each site and enabling 2-Factor Authentication.
Elders are often vulnerable and isolated, and they may not be as tech-savvy. Therefore, they are targeted by this type of fraud. It’s essential to maintain social contact with parents and grandparents as well as educate them about how times have changed.
