Scammers Often Target Seniors — Don’t Be a Victim

If you think you’d never fall for an online or phone scam, think again. The New York Times recently reported that a man lost $740,000 of his retirement savings to scammers. He was a retired lawyer.

Why do criminals target people over 60? It’s because this vulnerable demographic likely has the most money in savings. The American Association of Retired Persons’ (AARP) Fraud Watch Network is a great resource for senior scam prevention.

How do you identify a scam?

• If you did not initiate the call, it is likely a scam.
• Never call a phone number that shows up on your computer screen saying there’s an issue.
• Never divulge personal information to anyone.
• Don’t let anyone intimidate you to do something with your finances.

Seniors often fall victim to scammers, so much so that there’s a term for it: elder fraud. Financial exploitation is a form of elder abuse. While elder fraud often goes unreported due to the shame associated with being a victim, an estimated ​1 in 10 older Americans are swindled of their savings each year. According to Nasdaq’s 2024 Global Financial Crime Report, $77.7 billion of all reported global fraud was elder fraud.

The Justice Department defines “elder adult” as anyone 65 or older.  Elder exploitation is considered a felony. Those found guilty face a minimum one-year prison term (up to 20 years total), a fine of not more than $50,000.00, or both.

As with many crimes, elder fraud victims often know the perpetrators (but not senior scam prevention). The victims are unlikely to suspect family members, friends, neighbors or others they trust. A common scheme fraudsters use is to call, claiming to be a grandchild in trouble and needing money urgently. “It’s me!” the caller cries, prompting the victim to say the grandchild’s name. First, check the caller ID to see if you recognize the name or number (even if not, the scammer posing as the grandchild might claim to be using the kidnapper’s phone or a good Samaritan’s phone to call).

Let’s get back to the retired lawyer who was duped. Why were the criminals so convincing? He believed he was part of a government investigation. It was an intricate ruse: ironically, he thought he was helping federal investigators safeguard his money and catch thieves who were after it.

So how can you protect yourself — and your assets — from scammers? Phone scams targeting the elderly (and anyone, for that matter) are so common that mobile phone providers often will alert you if a phone number is potential spam. You can immediately block these callers. Many people simply don’t answer a phone number they don’t recognize. Let the call go to your voicemail; if it’s a legitimate message, you can return the call.

Fake text messages are rampant, particularly those about package deliveries. There’s a word for this, too: smishing. It’s a combination of “SMS” (short message service or texting technology) and “phishing,” trying to steal personal or financial data, primarily via email. Don’t be fooled.  According to the Federal Trade Commission (FTC), Americans lost $330 million to text scams last year.

Online scams for seniors are the bread and butter of scammers, often known as hackers, and are very sophisticated. To prevent identity theft, you must be vigilant. Your first line of defense is to look at the “from” line in an email. If the email is from your bank, for instance, the sender’s email address will usually be the bank’s name followed by “.com” – such as @citi.com. A fake email and website can exactly mimic the real email/website, so be sure to look for impostors. If you notice misspellings or other errors, take it as a warning sign. If you shop on Amazon, beware of scams including purchases, membership renewals, and tech support. Sweepstakes are another common trick used by scammers.

Not all scams are perpetrated online or over the phone. This is especially true during an election year. While most voter registration drives are legitimate, know that you cannot register by phone, email or text. If you register online, do not use unsolicited links. If you fill out a voter registration form at an event, don’t leave the filled-out form on a table where anyone can see it. Your best bet is to mail or take the completed form to an election office. 

Your purse or wallet can be a veritable filing cabinet giving criminals access to confidential information. Criminals can use your information to create synthetic identities. For starters, only carry your Medicare card when you need it, such as when going to a medical appointment. Report suspicious activity to 800-633-4227 (800-MEDICARE).

Other pieces of identification you should leave at home (ideally in a safe deposit box) include your Social Security card, passport, and birth certificate. The Social Security Administration offers resources on how to protect yourself from scams.

Avoid carrying multiple credit cards (take photos of the front and back of your cards in case you need to report them missing or stolen), and don’t carry around your checkbook or even a blank check. Don’t put an extra house key in your wallet; your address is on your driver’s license!

If your wallet is stolen, don’t panic. Freeze your credit, cancel any credit/debit cards, and update any auto-pay accounts. Of course, notify the police.

People of any age can be victims of thieves, and more so when traveling. To discourage pickpockets, wear a money belt. Leave valuables in your hotel room, and be cautious when in crowds.

ATMs scam are another target of scammers. Up to $2 billion is lost to ATM scams each year, according to industry estimates. Use a bank ATM (instead of a public ATM) whenever possible, and make sure there are working security cameras. When entering your PIN, shield it so others can’t see it. Stranger danger: If someone offers to help you use the ATM, decline the offer and leave immediately. Avoid any strange signage, on-screen messages, or ATM failures, and report them promptly (but not to a number posted next to the ATM, which could also be a scam).

Just as you protect your health with annual checkups and preventive medications, take precautionary steps for senior scam prevention. As the saying goes, “Better safe than sorry.” Go with your gut. If you think something is suspicious, it likely is. Never be pressured into making a hasty decision online or on the phone. When in doubt, contact the proper authorities.