You’ve worked hard your entire life to create a stable and secure future, and safeguarding this legacy is so important. Sadly, as scammers become cleverer and more creative, they continuously find new ways to target the financial assets of older adults. Every year, millions of Americans fall victim to these tricky schemes, and the numbers are staggering.
Financial fraud is the most common form of elder abuse. Scammers are typically professional manipulators. They often target older adults, assuming they may have significant savings, own their homes, or have a more trusting or polite nature.
One of the biggest hurdles is the silence that often follows a scam. Victims may feel ashamed or fear that reporting the crime could cause relatives to question their ability to manage their own affairs. It’s important to change this narrative, both for seniors and their family members. Falling for a complex scam is not a reflection of one’s intelligence or capability. These criminals are experts at creating panic, demanding urgency, and enforcing isolation to pressure quick decisions. Many scams ultimately rely on a lack of communication with trusted family, friends, and support systems.
Let’s take a closer look at some common scams so they’re easier to recognize, prevent, and report.
Recognizing the Red Flags: Common Elder Scams to Watch For
While the stories may change, the tactics are usually similar. Scammers will contact you unexpectedly, create a sense of crisis, and demand a specific, unusual form of payment. Here are some of the most prevalent scams:
Government Impersonator Scams
A caller claims to be from the IRS, Social Security Administration, Medicare, or another agency. They often use bogus threats, such as penalties or arrest, to coerce payment or collect personal information.
Remember: Government agencies almost always initiate contact through official mail, not with threatening phone calls. Do not provide any information or payment on a call you didn’t initiate. Always call the agency yourself using an independently verified, official phone number, or offer to visit a local office if you’re worried that something might need to be addressed. When dealing with insurance, it can always be helpful to use a legitimate medicare agent with a license in your state.
The Grandparent Scam
This scam plays on your emotions. A scammer will call, pretending to be a grandchild or other relative in a desperate situation, like a car accident, an arrest, or a medical emergency abroad. They plead for money and beg you to keep it a secret.
A new twist involves AI voice cloning, where criminals use a snippet of a loved one’s voice from sources like social media to create a realistic but fake audio plea for help.
This makes it difficult because of course you want to aid family members. However, it’s better to take a step back. Consider that even legitimate requests for help shouldn’t isolate a single person. In many cases, involving multiple family members or friends is more likely to provide both you and the person who may be in a jam with the support that’s ultimately needed if it is legitimate.
Romance Scams
Criminals create fake profiles on dating sites and social media, building a relationship over weeks or months. Once they’ve gained your trust, they begin asking for money for a fabricated emergency, travel costs to visit you, or a business venture.
The best defense is a healthy dose of skepticism and a clear plan of action.
Steps for Self-Protection:
Scammers create a false emergency. Your best defense is to create a real pause. If a call, text, or email feels urgent or threatening, stop. Hang up the phone. End the conversation. Independently find the official phone number for the agency, company, or individual and call them directly to verify the story.
Never provide sensitive information such as your Social Security number, bank account details, credit card numbers, or passwords in response to an unsolicited request.
Finally, remember that a legitimate company or government agency will never demand that you pay a bill using gift cards, wire transfers, cryptocurrency, or a payment app.
A Team Approach:
Start the Conversation
Talk openly and without judgment about scam tactics. Frame it as a partnership to protect the family’s assets and well-being. Scams thrive on isolation, shame, and a lack of communication. The support of trusted family and friends is critical.
Establish a “Safe Word”
Create a unique family password or phrase that only immediate family members know. If a supposed loved one calls asking for money in an emergency, you can ask for the safe word to confirm their identity.
Consider a Financial “Buddy System”
Some banks allow you to appoint a trusted individual with “view-only” access to your accounts or set up alerts for large transactions. This allows a family member to spot suspicious activity without having direct access to funds.
Take Action Immediately
If you suspect you or a loved one has been targeted, act quickly. Reporting can promote justice for the people behind the scams and help protect others.
Immediately call your bank and credit card companies to report fraud and block any further unauthorized transactions. Consider filing a police report. Notify federal agencies, such as Medicare or Social Security.Reporting to these agencies helps them track scam patterns and build cases against criminals.
By staying informed and working together, we can all build a strong defense against those who seek to exploit others.
