Financial scams targeting older adults are costly, widespread, and on the rise. While cyber-enabled crime has been around for many years now, the methods used by perpetrators continue to increase in scope and sophistication. Scammers 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.
In this blog post. we will discuss the most common scams targeting older adults and what to do if you think you’ve been a victim.
Government Impersonation Scams
Scammers call unsuspecting older adults and pretend to be from the Internal Revenue Service (IRS), Social Security Administration, or Medicare. They may say you have unpaid taxes and threaten arrest or deportation if you don’t pay up immediately. They may say your benefits will be cut off if you don’t provide personal identifying information.
Government imposters may demand specific forms of payment, such as a prepaid debit card, cash, or wire transfer. Using special technology, they often “spoof” the actual phone number of a government agency or call from the same ZIP code. This can trick some people into thinking the caller is from a valid source.
Sweepstakes & Lottery Scams
Fraudsters call impersonating a popular sweepstakes company, such as Publishers Clearing House, and tell you that you’ve won a lottery or prize of some kind. To claim your winnings, they tell you that you must send money up front to cover supposed taxes and processing fees. Of course, no prize is ever delivered. Many of these scammers will continue to call for months and even years after defrauding you out of an initial sum of money.
Robocalls & Phone Scams
Robocalls take advantage of sophisticated, automated phone technology to dial large numbers of households across the country. 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.
Some robocalls may claim that a warranty is expiring on your car or electronic device, and payment is needed to renew it. Like with government impersonation calls, scammers often spoof the number from which they’re calling to make it appear as if the call is from a reputed organization.
One common robocall scam begins with a simple question such as “Can you hear me?” When you respond, your voice is recorded, and the call disconnects. Now that they have your voice signature they used this to authorize unwanted charges on items such as stolen credit cards.
Computer Tech Support Scams
Preying on older people’s lack of knowledge about computers and cybersecurity, a pop-up message or blank screen may appear on your computer or smart phone informing you that your device is damaged and is in need of repair. When you call the support number for help, the scammer may either request remote access to your computer and/or demand you pay a fee to have it repaired.
The Grandparent Scam
Scammers call pretending to be a grandchild. The caller might say something like “hello Grandma, do you know who this is?” When you guess a name of the grandchild, the scammer now has a name and is able to secure your trust. The fake grandchild then asks for money to solve some urgent problem such as overdue rent, car repairs, or jail bond. They beg you not to tell anyone.
Another version of this scam, the caller claims to be an arresting police officer, doctor, or lawyer trying to help the grandchild. They then use high-pressure tactics that play on your emotions to get you to send cash as quickly as possible.
The impersonator will often ask to be paid via gift cards or money transfer, which do not always require identification to collect. There have even scammers showing up at homes, posing as a courier or officer to pick up the money.
Romance Scams
Romance scammers create elaborate fake profiles, often on social media, and exploit older adults’ loneliness to get money. In some cases, these scammers may be overseas. They may request money to pay for visas, medical emergencies, and travel expenses to come visit you. Since they tend to drag on for a long time, romance scams (also called sweetheart scams) can bilk a person out of substantial funds.
What Should You Do If You Think You’ve Been Scammed
First, there’s nothing to be ashamed of if you think it’s happened to you. Call your local police, your financial institution, and adult protective services. You can also report the scam to the Federal Trade Commission. If think you have been a victim, contact 360 Consumer Law™ for a free consultation today!
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