Protecting Elderly Family Members from Financial Scams

elderly woman on computer

Financial scams targeting the elderly have become alarmingly common, with criminals exploiting the vulnerability, trust, and often-limited digital literacy of older adults. With the growing reliance on digital banking, online shopping, and virtual communication, scammers have developed increasingly sophisticated methods to deceive and steal from seniors. If you’re caring for an elderly loved one, it’s important that you know how to recognize and respond to common scam tactics, including online, telephone, home repair, and banking scams.

Current Rate of Fraudulent Scams Targeting the Elderly

According to the FBI, financial scams targeting older adults cost victims more than $3 billion annually. In 2023, reports of financial fraud against seniors increased by 15%, reflecting a rising threat as scammers adopt new tactics, particularly in the online space. Seniors are often targeted because they tend to have savings, home equity, and good credit, making them attractive victims for fraudsters.

The COVID-19 pandemic accelerated the digital shift, which exposed many elderly individuals to unfamiliar online environments, making them even more susceptible to scams. As a result, awareness and proactive measures to protect elderly family members from fraud are more critical than ever.

Online Scams

Online scams are among the most prevalent threats facing older adults today. These scams include phishing emails, fraudulent websites, fake tech support, and malicious software downloads, all designed to steal personal information or money. Common online scams targeting the elderly include:

  • Phishing scams: Fraudulent emails that appear to come from legitimate companies (such as banks or government agencies) asking the recipient to click on a link and provide sensitive information.
  • Fake online stores: Scammers set up websites that appear to be legitimate e-commerce sites, tricking victims into entering credit card details or making payments for goods that never arrive.
  • Romance scams: Fraudsters build emotional connections with victims through social media or dating platforms, then fabricate emergencies to request money or personal information.
  • Tech support scams: Scammers pose as representatives from major technology companies, claiming there’s an issue with the senior’s computer that needs to be fixed immediately. They then ask for access to the computer or payment for fake services.

Telephone Scams

Phone-based fraud is another common method criminals use to target the elderly, often preying on their trust and willingness to engage with callers. Some typical telephone scams include:

  • Impersonation scams: Callers pretend to be from government agencies like the IRS, Medicare, or Social Security, demanding immediate payment or threatening legal action.
  • Grandparent scams: Scammers pose as a grandchild or relative in distress, claiming they need money urgently for medical bills, bail, or emergency travel.
  • Lottery and sweepstakes scams: Scammers tell victims they’ve won a large prize but must pay taxes or fees upfront to claim it.
  • Utility company scams: Callers impersonate utility companies, threatening to cut off services unless immediate payment is made.

Home Repair Scams

Elderly homeowners are frequently targeted by fraudulent contractors or con artists offering home repair services. These scammers often go door-to-door offering services such as roofing, driveway paving, or home renovations, but they demand payment upfront and either perform subpar work or never return to complete the job. Common warning signs of home repair scams include:

  • Unsolicited offers: Legitimate contractors don’t typically approach homeowners without prior contact.
  • High-pressure sales tactics: Scammers create a sense of urgency, insisting that the job must be done immediately to prevent further damage.
  • Lack of credentials: Fraudsters often lack proper licensing, insurance, or references.

Bank Fraud and Check Scams

Bank fraud and check scams involve criminals exploiting a senior’s financial accounts through deception. These can include:

  • Fake check scams: Scammers send the victim a counterfeit check and ask them to deposit it, then wire back a portion of the funds. The check eventually bounces, leaving the senior liable for the full amount.
  • Account takeovers: Fraudsters gain access to an elderly person’s bank account by tricking them into giving up log-in credentials or personal information, then deplete their funds.
  • ATM or debit card fraud: Scammers steal card details using skimming devices at ATMs or manipulate victims into revealing their PINs.

How to Detect Online Scams

Detecting scams targeting elderly individuals, especially online, requires vigilance and awareness. Here are some red flags to watch for:

  1. Unsolicited communication: Be wary of unsolicited emails, text messages, or social media messages asking for personal information, especially if they include a sense of urgency.
  2. Too-good-to-be-true offers: If a deal seems too good to be true, it likely is. This includes offers of prizes, lottery winnings, or investment opportunities that require upfront payments.
  3. Misspellings and poor grammar: Many online scams are riddled with grammatical errors and awkward phrasing, a sign that they may not be legitimate.
  4. Suspicious links and attachments: Never click on links or download attachments from unknown senders. Verify the sender by contacting the company or person directly.
  5. Requests for personal information: Legitimate companies will never ask for sensitive information like passwords, Social Security numbers, or credit card details via email.

How to Respond to Scams

If you suspect that an elderly family member has fallen victim to a scam, it’s essential that you act quickly to minimize the damage. Here are the steps you should consider taking:

  1. Cease communication with the scammer: If they’ve been in contact with the scammer via phone, email, or social media, advise them to stop all communication immediately.
  2. Contact their financial institutions: Notify banks and credit card companies to put a freeze on accounts, dispute unauthorized charges, and issue new cards if necessary.
  3. Report the scam: Report the incident to the Federal Trade Commission (FTC) at IdentityTheft.gov and, if necessary, file a police report. Additionally, report the scam to the Internet Crime Complaint Center (IC3) if it occurred online.
  4. Monitor credit reports: Encourage them to regularly monitor their credit reports for any unusual activity. They can request free credit reports every week from each of the three major bureaus at AnnualCreditReport.com. Accessing your own reports won’t impact your scores in any way.
  5. Set up fraud alerts or credit freezes: If personal information has been compromised, consider setting up fraud alerts with the credit bureaus or freezing their credit to prevent new accounts from being opened.
  6. Educate and set up safeguards: Take this opportunity to educate your elderly family member(s) on recognizing scams in the future. Install security software on their devices and help them enable features like multi-factor authentication (MFA) for online accounts.

Financial scams targeting the elderly are a growing concern, but with awareness and vigilance, many of these schemes can be detected and prevented. If they follow expert advice but still fall victim to an identity thief, don’t freeze. Take immediate action to resolve the theft.