Every year, thieves target individuals to get access to their personal information and money, and they tend to zero in on older people. Victims of elder financial exploitation lose $28.3 billion annually, according to a 2023 BankSafe report by AARP. If you haven’t yet been approached by a scammer, you could face a scheme in the coming years. Sometimes family members, especially relatives caring for the elderly, are even the ones behind the attack.
Some of the most common senior scams include:
— AI-powered scams.
— Funeral scams.
— Tech support scams.
— Government imposter scams.
— Grandparent scams.
— Internet scams.
— Investment scams.
— Check fraud.
— Reverse mortgage scams.
— Caregiver scams.
— Sweepstakes scams.
Here’s a breakdown of how these elderly scams work and what you can do to avoid falling prey to an attack.
AI-Powered Scams
Crooks use advanced technology like artificial intelligence to write emails pretending to be someone or a company. They use tools to analyze patterns from a target’s online presence and then develop a message that sounds real. They could also generate realistic-sounding voices that ask a victim for personal information. “This makes it easier to deceive individuals into sharing sensitive information or taking fraudulent actions, as the AI-generated email messages or calls may appear convincing and authentic,” said Robert Siciliano, co-founder of Protect Now LLC, a Boston-based information technology and cybersecurity firm, in an email.
[READ: Can AI Pick Stocks? A Look at AI Investing]
Funeral Scams
If you place an obituary in a local publication after a loved one dies, a thief might contact you and insist that your deceased relative left behind a debt that needs to be paid. In another variation of this scam, the criminal might attend the funeral to gather information about you before asking for money to cover the debt. Someone pretending to be from the funeral home could call you and insist that there are extra charges that haven’t been paid. For all these attempts, refuse to send money immediately and ask for written documentation of the expense.
Tech Support Scams
A criminal might call or email you, pretending to be a support representative for a tech company. They could warn you that a virus or malware has damaged your computer. They may offer to update or fix your device. Once they begin work, they gain access to your personal files and information.
Government Imposter Scams
You might receive phone calls from people pretending to be from the IRS or Social Security Administration that demand immediate payment of unpaid taxes or ask for personal information to continue your Social Security or Medicare benefits. The scammer could use a technique called spoofing, which makes it appear as if the incoming phone number is legitimate. The caller is likely to ask you for information or insist you make a payment, which might need to be in the form of a gift card.
“The IRS and the SSA will never initiate contact with people through a phone call, so you can be sure that the person calling you is a scammer,” said Steve Weisman, a lawyer and author of the scam blog Scamicide, in an email.
[READ: The Maximum Social Security Benefit in 2024 — and How to Earn It]
Grandparent Scams
In this scenario, a person will pretend to be the grandchild of the person who answers the phone and ask for money. The caller might claim they are having an emergency, such as a car accident or problem with the law, and don’t want anyone to find out. They sometimes ask you to send them money or gift cards.
“The scammers often harvest the information they need to make the call appear legitimate from obituaries and social media,” Weisman said. “Setting up a code word for the grandchild to use in a real emergency is a good thing to do.”
Internet Scams
If you share information about yourself through social media, scammers could target you online. Internet scammers can find your personal information and use it to motivate you to provide funds or share more information.
“A client of mine got scammed out of a lot of money through Facebook,” said Patrick Simasko, an elder law attorney at Simasko Law in Mount Clemens, Michigan, in an email. “The scammer pretended to be an officer in the army and claimed they needed money to get back from Afghanistan and visit their kids.” The scammer could also pretend to be someone famous and invite you to connect personally with them. If you receive a message asking you to click a link, share details about your identity or make a payment, delete it.
Investment Scams
A person claiming to be a financial advisor, real estate investor or wealth manager could contact you to discuss an exciting investment opportunity and promise big returns if you send them funds. These scams will take your money and not return anything to you. Before contributing to a new investment, consult a trusted financial advisor with appropriate credentials and avoid fast decisions.
Check Fraud
Thieves might steal a check from your mailbox or mail carrier. They could change the amount of the check and make it payable to someone else. Or they may take a digital picture of the check and alter it so they can make more deposits or develop other checks from the picture.
Reverse Mortgage Scams
If you own your own home, you could be contacted by an individual claiming that you could access some of the equity in your residence with a reverse mortgage. They may offer to appraise your home for a fee, give you an invalid home value and ask you to sign up with inaccurate loan documents. Don’t respond to any requests that ask you to share details about your home or make a payment for a reverse home mortgage. If you’re interested in getting a reverse mortgage, reach out to a reputable mortgage lender or advisor in your area and talk about your options.
[Read: Should You Pay Off Your Mortgage Before You Retire?]
Caregiver Scams
Caregivers may collect your data while in your home with you. If you’re getting help from family members, they could have access to your personal information and take money from your accounts without you knowing about it. Your information could be used to open a new credit card and make purchases. To avoid falling victim, carefully research and vet any health aides or caregivers before they enter your home.
Sweepstakes Scams
A fraudster could contact you to congratulate you for winning a lottery. They might send you a fake check, which may initially look real until it is rejected by the bank. That leaves you on the hook to pay fees or cover taxes. Jim White, an attorney and founder of J.C. White Law Group in Chapel Hill, North Carolina, has a client who was told that his wife, who has dementia, entered and won $15 million in an international sweepstakes, but then the client was asked to pay for fees.
“If you are told that someone who is incompetent has either won a prize or incurred an obligation, look into it carefully,” White said in an email. “Do not allow anyone to forward you money of any kind in any way that you must pass on to anyone else.”
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10 Common Scams That Target Seniors and How to Avoid Them originally appeared on usnews.com
Update 02/02/24: This story was published at an earlier date and has been updated with new information.
