Helping Seniors Avoid Fraud

Older adults are often the target of scams. Scammers are savvy and convincing, and they design their scams to catch people off guard. Vulnerability can stem from various factors, making seniors prime targets for malicious actors.

However, these older adults are less likely to report fraud because they don't know who to report it to, are too ashamed to have been scammed or don't know they have been scammed. For example, they may not report crimes because they are concerned that relatives may think they no longer have the mental capacity to take care of their financial affairs.

Don't feel ashamed if you think you or someone you know has been a victim of a scam. It can happen to anyone. Just remember important steps for prevention and action should something occur.

Why seniors become targets

Older generations often grew up in an era where trustworthiness was more common, leading them to take people at their word. Today's seniors are not as familiar with technology or the subtlety of nefarious acts, making them easier targets for online scams and fraud.

Additionally, many seniors live alone or in social isolation, making them more susceptible to engaging with scammers who offer companionship or help. Age-related cognitive decline can impair judgment and make it difficult for seniors to recognize fraudulent schemes.

Financial stability is an excellent lure for bad actors. Seniors often have access to retirement funds, pensions and savings, which are attractive to fraudsters.

Scammers also know that older people hesitate to report scams. They recognize the effects of age on memory and are counting on elderly victims not being able to supply enough detailed information to investigators. In addition, the victim's (or their family's) realization that they have been tricked may take weeks or months. This extended time frame makes it even more difficult to remember details from the events.

Common types of scams  

Scams can occur in various ways, including:

  • Telemarketing. Scammers call seniors, posing as legitimate businesses, charities or government agencies to solicit money or personal information.

  • Phishing. Fraudulent emails or links in social media appear to be from reputable sources or, in some cases, famous people asking for personal information.

Types of scams include:

  • Health care and insurance scams. Fake health insurance plans or fraudulent medical services target seniors' health concerns. Information from security breaches is often shared on the dark web, allowing bad actors to be very specific about requests if they have obtained information about conditions, local hospitals or doctors.

  • Investment scams. Fraudsters offer bogus investment opportunities promising high returns with little risk, preying on seniors' desire to grow their retirement savings. In some cases, scammers urge older people to empty their entire account to put it into what they believe is an investment.

  • Grandparent requests. Scammers pose as distressed grandchildren and urgently ask grandparents to send money to help with an emergency. In some cases, savvy fraudsters who follow social media accounts may have names and images of their grandchildren.

  • Charity fraud. These scams can come in emails, social media posts, crowdfunding platforms or cold calls. They are especially common after high-profile disasters.

  • Tech support scam. Criminals pose as technology support representatives and offer to fix computer issues. The scammers gain remote access to victims' devices and sensitive information.

  • Home repair scam. Criminals appear in person and charge homeowners in advance for home improvement or cable television services that they never provide.

How to protect seniors  

Caregivers for elderly parents and relatives should be aware of the potential for scams targeting their loved ones. Be present in your relatives' lives and encourage them to stay socially connected with others. Doing so makes it more difficult for would-be predators to act.

Knowledge is the first line of defense. Regularly inform seniors about common scams and red flags to watch out for. Encourage seniors to avoid sharing personal information over the phone, email or online, especially with unknown contacts. Set up a procedure in case someone calls describing an emergency. Tell the senior the steps to independently verify this claim with other loved ones.

Other preventive measures to consider include:

  • Installing antivirus software, enabling firewalls and using spam filters to reduce the risk of online scams

  • Setting up a bill payment schedule and automatic bill paying, or consider becoming a cosigner for their financial accounts

  • Regularly reviewing bank statements and financial accounts for unauthorized transactions or unusual activity

  • Put their phone numbers on the national Do Not Call Registry at www.donotcall.gov

If necessary, discuss setting up a power of attorney with your loved one and other relatives to allow a trusted person to manage the senior's finances.

Steps to take if fraud occurs

If you believe you or someone you know may have been a victim of elder fraud, contact your local FBI field office or submit a tip online.

When reporting a scam–regardless of dollar amount–include as many of the following details as possible:

  • Name of the scammer or company

  • Dates of contact

  • Methods of communication

  • Phone numbers, email addresses, mailing addresses and websites used by the perpetrator

  • Methods of payment

  • Where you sent funds, including wire transfers and prepaid cards (provide financial institution names, account names and account numbers)

  • Descriptions of your interactions with the scammer and the instructions you were given

You should keep original documentation, emails, social media posts, transactions and communications logs whenever possible.

  • Immediately report the fraud to local law enforcement and the Federal Trade Commission (FTC).

  • Notify banks, credit card companies and other financial institutions about the fraud to stop further unauthorized transactions. Place a fraud alert or freeze on credit reports to prevent new accounts from being opened in the senior's name.

While you handle all the practical details, encourage the senior victim to speak with family members, friends or a professional counselor to help them cope with the emotional impact of fraud.

Organizations to contact:

Sources: National Institutes of Health, Federal Bureau of Investigations and National Credit Union Administration