- Credit Cards
- Credit Repair
- Financial Glossaries
- Personal Finance
Scammers will use any means to extort money from those they deem to be the most vulnerable. Often, they target senior citizens. Many seniors are targeted on a daily basis by predatory scammers and con-artists looking to take advantage of them, and keeping your elderly loved ones informed has never been so crucial.
If you’re worried that you or a loved one is being targeted, this guide will help you learn about common scamming methods, how to avoid becoming the target of a scam, how to recognize signs that someone is being affected by a scam, and what to do when you’ve discovered that a scam has taken place.
Those looking to commit fraud will use any possible avenue to achieve their goal. Your phone, email inbox, and even your front door can become entryways for those with malicious intent. Because any method of contact can be used to defraud you or your loved ones, constant vigilance is required. Let’s discuss some of the most common methods of contact for scammers.
In order to defend yourself or your loved ones, you should get familiar with the strategies fraudsters use to exploit the elderly. Let’s take a look at the the most common scams. Learning about these will enable you to anticipate scams and protect yourself or report a suspicious person when needed.
Have you ever received a call, email, or pop-up notification from tech support about a necessary update or software to remove dangerous viruses on your computer, tablet or phone? These “tech support calls” can be a scam.
If you get an email or phone call from a person claiming to be from Microsoft or Apple, be wary. Don’t give these people any information. They may be selling malware-laden software or are simply trying to steal your personal information in order to commit identity theft.
If you get a letter in the mail, a phone call, or an email informing you that you’ve won some sort of lottery — one that you’re unaware you were ever entered into — you may be the target of a lottery scam. The “prize money” is often locked behind supposed customs fees, taxes, and other expenses that you’re responsible for. They’ll often take wire transfers, credit card numbers, or even gift cards to pay these fees. The biggest problem with this is that the prize money doesn’t exist.
The easiest way to avoid this scam is to carefully analyze any propositions like this. Some of this boils down to common sense — if you didn’t enter a lottery, it’s extremely unlikely that you would be selected as a winner of one. However, if the lottery seems to be operated by a reputable organization, do some research: contact the group or check their official site for any evidence that the drawing is legitimate.
This covers a variety of scams that involves fraudsters either taking money upfront for work they’ll never complete or participating in unethical behavior that you’ll have the pay the price for later. Some examples of home repair scams, as listed by the FTC, include:
Reverse mortgages, an option for people at least 62 years old, can help seniors (who are often on a fixed income) overcome financial hurdles. Unfortunately, predatory lending practices have led to many seniors being charged unreasonable interest rates. Such loans with predatory rates are often called reverse mortgage scams.
The FBI has given some advice for seniors to avoid these loans. This includes:
Sometimes, scammers may target seniors by falsely posing as representatives from government organizations such as the IRS or SSA. They’ll demand payment for back taxes, for missing jury duty, or for some other false pretense and extort money under the threat of arrest, jail time, or deportation. Using phone number spoofing (as outlined above) and fake badge numbers, a call from such a scammer may even appear to be authentic.
Do not pay the imposter, and report any such attempts. Federal organizations such as the IRS don’t contact civilians in this manner to collect debts — they’ll typically make such requests through the mail.
If someone claims that they are a representative from the government looking to help you continue your Medicare coverage, be wary: They may be simply looking to get your information in order to commit identity theft. This scam most often takes place during the Medicare “open enrollment” period and disproportionately targets seniors.
Only provide information after you’ve verified who you’re talking to. You can call 1-800-MEDICARE to check that you’re not speaking with an impostor.
Another type of scam that can harm seniors is romance scams. Malicious users will often target widows or widowers on social media or dating sites, posing as a new potential romantic interest. After taking some time to build trust with the target, scammers will begin to request more information about them, perhaps even soliciting money via wire transfers. Blinded by love, these users will often lose hundreds, if not thousands of dollars in this long con.
This is a prevalent problem on dating sites. In fact, 12 percent of all dating site users are conned. In order to avoid becoming a part of this statistic, do not give information or money to anyone unless you’ve verified their identity. Thoroughly research people online, and keep an eye out for any inconsistencies in a person’s backstory; these might be the signs of a fake, malicious user.
In a similar manner to romance scams, grandparent scams involve assuming a false persona in order to develop a relationship with a target under false pretenses. In this scam, fraudsters pretend to be the distant relative of the target (or a lawyer presenting the relative) in order to extort money from them for supposedly urgent reasons. This is particularly problematic when the person being targeted has memory-related issues stemming from conditions like Alzheimer’s or dementia.
An especially disheartening type of scam, charity frauds and donation scams are very common, particularly during the holiday season. People looking to turn the spirit of cheer and goodwill into personal gain may pose as a collector for a charitable (often non-existent) organization and solicit for donations.
Don’t donate before researching the veracity of this organization. If they have a good, reputable track record, you can feel confident that your donations will go toward the cause it is intended to. Furthermore, instead of giving money to a door-to-door collector, opt to donate directly to the organization when possible.
While some advice for common scams can be found in the previous section, there are some best practices that you must follow in order to protect both yourself and your family. Here are some of the most important general tips you should follow to avoid becoming the victim of a scam:
If you have concerns that a friend, family member, or patient is being targeted or has been affected by a scam, there are signs to look out for. Unusual behavior in regards to finances or contact with strangers could indicate that you need to open a dialogue with the person in question.
Do any of the scam methods above sound like something you or a loved one has been through? Do you feel like you or they may be the victim of another type of scam? The following advice will help victims protect themselves and minimize the damage the scam can do to them.
Above all, in order to keep others safe from the scam that affected you, be sure to report the crime with the appropriate organization: