It’s a typical afternoon and your phone starts ringing. You don’t recognize the number, but you’re expecting an important call, so you pick it up and are greeted by a friendly voice introducing themselves as a representative from your bank. You’ve never known your bank to call you out of the blue like this, so something must be wrong. Sure enough, they begin talking about how elder fraud is rising and that your account may have been impacted. After rattling off a few transactions, they promise to fix the problem but need to verify your social security number, account number, and date of birth for security purposes. Do you give it to them?
You may have read this and thought, “No way—it’s a financial scam.” If so, you’re correct. Unfortunately, financial scams have become a growing concern and impact millions daily. The most targeted group is seniors. In fact, elder fraud against individuals aged 60 and older caused over $3.4 billion in losses in 2023—an increase of roughly 11% from the year before. The average victim of elder fraud lost $33,915 due to these crimes that year.
Financial fraud occurs every 15 seconds. Thankfully, support programs, tools, education, and other resources like those at The Senior Source’s Elder Financial Safety Center are available to help you or an older adult loved one recognize the signs of elder fraud and protect yourselves from crafty scams designed to turn your financial world upside down.
Elder fraud against individuals aged 60 and older caused over $3.4 billion in losses in 2023—an increase of roughly 11% from the year before. The average victim of elder fraud lost $33,915 due to these crimes that year.
Financial Scams: Would You or a Loved One Recognize These Red Flags?
- You’re told to act quickly and not tell anyone
- A caller or email asks for private information (account numbers, passwords, PINs, etc.)
- Requests to confirm personal or account details
- Threats of fines or legal action if you don’t comply
- Requests to click a link or download an attachment
- An email about an error processing an online purchase
- Calls claiming to be from the FBI or IRS
- Unsolicited calls or emails claiming you’ve won something (e.g., lottery)
- Pop-ups on your computer screen warning of a virus
- Pressure to pay in unusual ways (gift cards, iTunes, wire transfers, etc.)
Why Are Seniors Targeted More in Financial Scams?
According to the FBI, older adults are more likely to lose billions of dollars each year to fraudsters who exploit their trust. It could be a tactic as simple as a phone call about winning the lottery to more sophisticated schemes such as romance scams or government impersonation scams. Over 101,000 victims aged 60 and over reported elder fraud in 2023 alone. Comparatively, there were only 18,000 victims under 20 during the same timeframe.
Why are seniors targeted more often than other age groups? There are several reasons for such a disparity.
- Typically, more financially stable — In other words, older adults have money in their savings accounts, pensions, retirement accounts, property, etc., to tap into. Many seniors fit perfectly into this category, thus making them a more attractive target for significant gains.
- Limited online experience — While seniors are becoming increasingly tech-savvy in today’s digital age, a common belief is that most aren’t as versed in online or phone security and can be susceptible to phishing emails, fake websites, and frantic or urgent phone calls. Technology, in general, may also be overwhelming, leading to unfamiliarity with common digital fraud strategies that younger people identify.
- Cognitive decline — As people age, some experience memory issues and reduced decision-making abilities, making them easier to confuse or manipulate. Many of these same individuals live alone and may not have someone they trust by their side during key decisions. As a result, they are easy targets for elder fraud.
- Trusting mindset — Older individuals grew up in an age where a person’s word could be trusted, and handshake deals were typical. As a result, they are significantly more inclined to believe that the person on the other end of the line or the person who sent them an email is, in fact, their banker, the IRS, the FBI, etc. They are less likely to hang up and will hear the other person out. The longer they listen, the more convincing the person becomes.
- Reluctance to involve family members — Some older adults may be fully aware that they are caught up in an elder fraud situation. However, they are hesitant to report to authorities or tell family members about a scam out of fear of embarrassment, pride, or concern that their family will think they cannot manage their finances. This gives the initial scammer an incredible amount of power.
Over 101,000 victims aged 60 and over reported elder fraud in 2023 alone. Comparatively, there were only 18,000 victims under 20 during the same timeframe,
What Are Common Examples of Financial Scams?
The FBI lists the five most common financial scams impacting older individuals and their families. In fact, these five scams made up more than 65% of the 2023 complaints mentioned earlier in this post.
- Government impersonation scams — Scammers pretend to be from the IRS, Social Security Administration, and even Medicare. They may threaten arrests or deportation for unpaid taxes or fines.
- Sweepstakes and lottery scams — Scammers explain that you’ve won and need to claim your winnings. However, you must send money, cash, or gift cards up front to claim that money.
- Robocalls and phone scams — Using automated phone technology, scammers may claim warranty expirations, impending lawsuits, or spoof legitimate numbers to impersonate government officials.
- Computer tech support scams — These scams prey on people’s lack of computer knowledge. Typically, a message will appear on the user’s screen telling them their device is damaged and needs fixing. When the user clicks the link or calls the phone number for help, the scammer requests remote access and a fee.
- The grandparent scam — Scammers call a would-be grandparent and say something like, “Hi, Grandma. Do you know who this is?” When the older adult guesses the name, the fake grandchild asks for money to solve urgent financial problems (car repairs, rent, jail money, etc.).
- Other popular scams — The FBI also says romance scams prey on the lonely to steal money. There are also business imposter, investment, and Medicare and health insurance scams, all of which result in billions of dollars lost each year to scammers.
How Can I Avoid Elder Fraud and Scams?
Here are a few tried and true tips for seniors and their caregivers:
- Discuss scams with your elderly loved ones regularly
- Never send money to anyone you don’t know, met online, or have not met in person
- Remember that it’s OK to be skeptical of unsolicited calls, emails, or texts
- Double-check with someone you trust before taking action
- Monitor bank accounts regularly
- Avoid clicking on links in unfamiliar emails or texts
- If it sounds too good to be true, it probably is
- Don’t give remote access to your computer or pay any fees
- Shred sensitive documents
- Ensure you have basic online protections (antivirus software, strong passwords, two-factor authentication).
- Work with your bank to establish alerts for suspicious activity to create peace of mind
- Appoint trusted family members to help oversee your accounts and financial decisions
- If you have been scammed, report what happened to the authorities
The Senior Source Is a Resource for Elder Fraud Prevention
Financial fraud occurs every 15 seconds. Scammers are sophisticated and use minimal details they can find about you online, from your mail or someone you know, to make up stories and scenarios that seem real or possible to get you to fall for their scam. At The Senior Source’s Elder Financial Safety Center, we provide education, resources, and tools to help you prevent financial fraud and protect yourself from scams.
We proudly announce that The Senior Source has joined with the Federal Trade Commission, US Department of Treasury, and other national and international organizations on the Scams Against Older Adults Advisory Group. The group focuses on expanding education efforts and improving training and technology to prevent scams. This adds to The Senior Source’s already robust efforts to protect older adults from frauds and scams.
When it comes to Dallas older adults, whether you are a family caregiver, a service provider, or a senior citizen, having a reliable resource is invaluable. The Senior Source is dedicated to supporting older adults. We empower active seniors to live purposeful lives and protect vulnerable seniors.
The seniors and families we assist are diverse, as are our services. Our advocacy ensures that everyone’s rights are upheld as they age, and we strive for financial and emotional well-being for all. We prioritize providing high-quality, practical solutions to our clients, constantly focusing on growing our reach and impact within the community. While doing so, we maintain a positive and inclusive work environment for our employees, who are integral in continuously expanding our influence.
Embrace the future of aging with us. Contact us at 214-823-5700 or complete the contact form to learn about our services. We are here to support you.
*Client names and/or photos may be changed to protect confidentiality.
