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Seniors are vulnerable to financial scams perpetrated by malicious fraudsters. Whether the older adult is wealthy or barely making ends meet, con artists perceive them to be prime targets. Here’s what to know about financial scams that target seniors and how to stay protected.
Why do thieves target seniors?
Financial scammers are on the lookout for people with retirement savings and who are easy targets. Seniors fit these criteria, as they hold financial assets saved up over a lifetime. Plus, aging people who live alone or suffer cognitive decline are vulnerable enough to appeal to con artists.
Lonely seniors, for instance, are more likely to be persuaded by scammers who present themselves in a friendly manner. Fraudsters gain the senior’s trust and convince them to return a favor. Cognitive impairments also make it easy for con artists to take advantage of their helplessness.
The scammers with an eye on the elderly are not always strangers. The majority of financial crimes are committed by someone the senior knows, such as a family member. Adult children are most often culprits, followed by grandchildren, nieces, and nephews.
What are common financial scams that target seniors?
1. Funeral Scams
Grieving seniors are often victims to funeral and cemetery scams. The fraudsters scan the obituaries and attend the funerals of strangers, only to demand the widower or widow repay the deceased’s outstanding debt. The scammers attempt to extort money from the survivors to settle this fake debt.
2. Fake Telemarketing
Older adults are the largest group making purchases over the phone. As a result, they are prime targets for telemarketing scams. These scams are difficult to trace, as they leave no paper trail and, without face-to-face interaction, the con artist’s identity is concealed.
When the schemer’s deal is successful, they share the senior’s name with other fraudsters, perpetuating ongoing scams. Fake telemarketing scams may occur after natural disasters, when seniors are more open to giving to charity. Con artists might also convince seniors to wire money for a relative’s hospital stay.
3. Investment Fraud
Retired seniors want a place to park their savings for use in later years. Thieves take advantage of retirees through pyramid schemes, where numerous investors are recruited. Scammers offer seniors complex financial products that are too confusing for even economists to understand.
4. Sweepstakes Scams
Seniors are eager when they learn they’ve won a sweepstakes. Unfortunately, a scammer may be behind the ploy, demanding a payment to unlock the prize money. The fraudster mails a fake check, then asks the intended victim to pay taxes on the winnings. Meanwhile, the fake check bounces.
5. Grandparent Scams
Older adults are often trusting, making them prime targets for grandparent scams. Fraudsters call the senior, pretending to be a grandchild in trouble. They ask the senior to wire money to bail the “grandchild” out of jail or pay overdue rent. Secrecy is urged to protect the “grandchild.”
6. Imposter Scams
Calls to seniors can be from individuals claiming to be representatives from government agencies, like the IRS or the Social Security Administration. The scammer threatens jail or criminal charges if the older adult does not pay the taxes they do not really owe.
Schemers might pretend to be from the senior’s utility company, asking the target to pay money or else their gas service will be cut. Older adults might receive calls from their bank; in reality, a con artist is behind the request to send money transfers or provide account details.
7. Sweetheart Scams
Lonely seniors using online dating sites are especially vulnerable to romance scams. Fraudsters feign romantic interest in an elder target to gain their affection and trust. Once trust is established, the scammer asks for money or bank account details, then disappears.
8. Tech Support Scams
Fraudsters take advantage of seniors who aren’t tech savvy. In tech support scams, a con artist claiming to be from a reputable tech company reaches out by phone, text, or email with an unsolicited offer to fix a computer problem remotely. They request bank account information or cash for service.
9. Health Insurance Scams
Medicare scams are frequently targeted at seniors 65 and older, the age at which individuals qualify for Medicare. In one common scam, the con artist, posing to be from Medicare, informs the senior that they require a new Medicare card and requests their Social Security number.
How do seniors protect themselves from financial scams?
Financial scams are pervasive. But seniors can protect themselves by learning about the latest techniques and scams fraudsters employ. When suspecting a scam, do not respond right away—as scammers rely on urgency. Instead, pause and think the situation through.
Seniors who do fall for a financial scam should not be embarrassed. Explain what happened to a family member or caregiver. Report the issue to the financial institution if money is withdrawn. Also report the suspected scam to the Federal Trade Commission (FTC) to prevent others from being scammed.
Older adults and their caregivers must be vigilant for possible financial scams. When your aging loved one needs an advocate, the professional caregivers at Assisting Hands Home Care are available. We provide a comprehensive range of non-medical elder care services to support seniors at home.
Caregiver responsibilities include grocery shopping and healthy meal preparation. We give timely medication reminders, perform light housekeeping, and provide transportation to the doctor’s office or pharmacy. Assistance with hygiene tasks, like bathing, toileting, grooming, and dressing, is included. We also provide transfer assistance.
Our caregivers are meaningful companions who prevent seniors from feeling lonely or isolated, which can help prevent them from being vulnerable to financial scams. Plus, each caregiver is licensed, bonded, and insured to deliver maximum peace of mind to elderly care recipients and their families.
Assisting Hands Home Care is the premier senior care agency for seniors living in Burleson, Cleburne, Mansfield, Midlothian, Waxahachie, TX, and the surrounding areas. Families choose us for our compassionate and dependable services. Call us at (817) 592-8843 to schedule a free in-home consult today and learn how quality senior home care can benefit your aging loved one.
