As World Elder Abuse Awareness Month comes to a close in June, the National Council on Aging (NCOA) is launching a national campaign to educate and empower older adults with knowledge on how to spot and avoid online scams.
Internet scams targeting older adults are on the rise. In fact, in 2023, most internet fraud complaints were filed by adults age 60+, with losses in that group reaching a staggering $3.4 billion.
Why do financial scammers target seniors?
Fraudsters and con artists tend to go after older adults because they believe this population has plenty of money in the bank. But it’s not just wealthy older Americans who are targeted. Older adults with low income are also at risk for fraud.
Financial scams often go unreported or can be tough to prosecute, so they’re viewed as a “low-risk” crime. However, they’re devastating to many older adults and can leave them in a vulnerable position, with limited ability to recover their losses.
These six scams outlined below made up more than 65% of these complaints:
1. Government impersonation scams
In government impersonation scams (also known as government imposter scams), scammers call unsuspecting older adults and pretend to be from the Internal Revenue Service (IRS), Social Security Administration, or Medicare. The information collected can then be used to commit identity theft.
2. Sweepstakes and lottery scams
Scammers call an older adult to tell them they’ve won a lottery or prize of some kind. If they want to claim their winnings, the older adult must send money, cash, or gift cards up front—sometimes thousands of dollars’ worth—to cover supposed taxes and processing fees. Scammers may impersonate well-known sweepstakes organizations (like Publishers Clearing House) to build trust among their targets. Of course, no prize is ever delivered!
3. Robocalls and phone scams
One common robocall is the “Can you hear me?” call. When the older person says “yes,” the scammer records their voice and hangs up.
Robocalls take advantage of sophisticated, automated phone technology to dial large numbers of households from anywhere in the world. While there are legal uses for this technology, robocalls can also be used to carry out a variety of scams on trusting older adults who answer the phone.
4. Computer tech support scams
Technical support scams prey on older people’s lack of knowledge about computers and cybersecurity. A pop-up message or blank screen usually appears on a computer or phone, telling the user their device is damaged and needs fixing. When they call the support number for help, the scammer may either request remote access to the older person’s computer and/or demand they pay a fee to have it repaired.
5. The grandparent scam
The grandparent scam is so simple and so devious because it uses one of older adults’ most reliable assets, their hearts. Scammers call a would-be grandparent and say something along the lines of: “Hi, Grandma, do you know who this is?” When the unaware grandparent guesses the name of the grandchild the scammer most sounds like, the scammer is able to instantly secure their trust. The fake grandchild then asks for money to solve some urgent financial problem (such as overdue rent, car repairs, or jail bond). They may beg the grandparent not to tell anyone. Since fraudsters often ask to be paid via gift cards or money transfer, which don’t always require identification to collect, the older adult may have no way of ever recovering their money.
6. Copycat Services
Unfortunately, scammers and businesses with copycat names have sprung up in recent years trying to fool older adults into thinking they are interacting with a familiar organization. Senior Services, a dedicated nonprofit organization with over 60 years of service in Midland County, has been the cornerstone of support for seniors seeking to live independently for decades. While Senior Services offers an extensive array of services and resources, it’s crucial to be aware of potential scams and services that may impersonate this trusted organization.
Behind the numbers are real people who have endured devastating losses at the hands of cybercriminals. In 2021, a man from Illinois lost his life savings to scammers pretending to be an employee of a known antivirus company. Under the guise of giving the man a refund for unused software, these scam artists gained remote access to his bank account and home equity line of credit. They ultimately made away with nearly $200,000—money that was never recovered.
Scams are specially designed to catch us off guard, and they can happen to anyone. There’s nothing to be ashamed of if you think it’s happened to you. Keep handy the phone numbers of resources that can help, including the local police, your bank (if money has been taken from your accounts), and Michigan Adult Protective Services at 1-855-444-3911.
“It’s a heartbreaking fact that scams have wiped out people’s retirement savings,” said Lois Greisman, Associate Director, Division of Marketing Practices at the FTC. “If a business, government agency, or even a grandchild in need contacts you, it’s critical to check who you’re really dealing with. Never panic or react quickly. Contact them at a number you know is real to verify.”
You can also report scams online to the FTC at reportfraud.ftc.gov/. Sharing your experience can help prevent it from happening to someone else.
Source: https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults
