The Top 5 Financial Scams Targeting Older Adults
Scams are an unfortunate reality for seniors in America today – and they’re on the rise. Last year, the FBI reported that more than ninety-two thousand seniors in America were victims of fraud, resulting in an estimated $1.7 billion dollars lost. In defense of today’s vulnerable seniors, the National Council on Aging has provided information on the five scams considered most common:
Robocall scams are nothing new, although they are evolving at a rapid pace. It’s the scourge of anyone with a phone: an unknown number calls, and when you pick up, a prerecorded message begins, promising limited time-offers, threatening lawsuits, or warning that a warranty on a valuable piece of property needs to be renewed.
Recently, however, a new type of call has become popular, nicknamed the “can you hear me” call. The premise is simple but effective: an unknown caller with ask of the person on the other end can hear them, and when the person answers “yes,” the scammer will record their voice and immediately disconnect. With this one word, a scammer can then mimic someone when they want to authorize fraudulent purchases.
Government impersonation scams involve individuals presenting themselves as government figures, such as representatives from the IRS or SSA, with the intent of using the illusion of authority to intimidate seniors into making payment for alleged transgressions. Said transgressions may include claims of unpaid taxes, various legal issues, or even a threat to cut off benefits if a fee isn’t covered. In these instances, it is common for the scammer to request personal information that can be used in identity theft, such as a social security number. With current technology, it is even possible for your caller ID to show the name of the relevant agency, as if you are receiving a legitimate call.
Sweepstakes scams are when scammers contact seniors via phone or email to tell them they’ve won some sort of prize or lottery. In order to claim that prize, them they must send a money or a gift card up front to cover “processing fees” and taxes. These scams are often repeated upon the same individual, with the scammer contacting them repeatedly to advise more money is needed to acquire the prize. In many cases, the scammer will use the name of a well-known agency, such as Publisher’s Clearing House, in order to increase their trustworthiness.
Computer tech support scams take advantage of many seniors’ unfamiliarity with technology. It’s common knowledge that many emails or links that seem harmless can lead to viruses, but it also can give scammers a way to gain remote access to a computer. A regularly used scam employs a pop-up message that claims the computer is damaged, and gives a tech support number to call for further assistance. The fraudulent tech support company may then either demand payment for repairs or ask for access to the computer in order to “fix” it.
Grandparent scams rely on emotional manipulation to obtain funds. A scammer will call and ask the answering part to “guess” who they are. Whoever the senior chooses, the scammer will pretend to be. They use this identity to ask for money to solve an urgent financial problem, such as overdue rent, car repairs, medical emergencies, or bail money. To avoid detection, it is common for them to ask for payment in the form of wire transfers or gift cards, which do not require official identification. This tactic is also employed against both parents and grandparents to gain access to personal information (“Hey, it’s me. What’s your social security number? I need it for financial aid,” etc.) Because the senior naturally wants to help loved ones, they are less likely to ask questions and more likely to act quickly.
Conclusion
While it isn’t possible to always avoid scammers trying to contact you, with this advice, you should be able to at least avoid these popular scams. You can find more detailed information on this topic at https://ncoa.org/article/top-5-financial-scams-targeting-older-adults
Source: National Council on Aging, Genevieve Waterman; Director, Economic & Financial Security