Each year, up to 20% of older Americans become victims of elder fraud, a type of financial exploitation that explicitly targets people 60 years and older using methods like deceptive emails, texts, phone calls and tech support requests. According to the FBI, total losses from elder fraud scams rose 11% in 2023 to more than $3.4 billion, with an average loss per victim of around $34,000. For individuals heading into retirement, or living off retirement income, this type of loss can significantly disrupt quality of life, robbing people of their golden years.
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Though older individuals are typically targeted for elder fraud scams because of vulnerabilities like isolation and lack of technical prowess, there are several ways that seniors, their family members and caregivers can stay on top of and prevent elder fraud abuse.
Stay Up to Speed on Scams
While scams are constantly evolving alongside technology, it is important to know what tricks fraudsters have on rotation in case you, a family member or client is on the receiving end. In 2023, the most common scams that caused financial losses to seniors included the following:
- Government impersonation scams in which a fraudster, posing as an IRS, Social Security or Medicare employee, says that the person has unpaid taxes or is going to lose their Social Security or Medicare benefits if they do not provide personal identifying information. This information is used to commit identity theft.
- Sweepstakes and lottery scams in which a scammer claims the individual has won something and needs to send money to cover supposed taxes or processing fees.
- Robocalls and phone scams in which a scammer, using phone number spoofing to make it appear as if the call is coming from a reputable organization, claims the individual needs to pay by a certain deadline to renew a warranty or prevent an impending lawsuit.
- Computer tech support scams in which a fraudster plants a pop-up message on an individual’s computer or phone, telling them their device is damaged and needs to be fixed. When they call the indicated support number, the scammer may either request remote access to the person’s computer and/or demand they pay a fee to have it repaired.
- Grandparent scams in which scammers call a grandparent and say something like: “Hi, Grandma, do you know who this is?” When the grandparent guesses the name of the grandchild the scammer most sounds like, the scammer secures their trust and asks for money to resolve an urgent financial problem.
Other common scams include romance scams, business imposter scams, investment scams, health insurance scams, and internet/email fraud scams.
Stay Proactive to Prevent Elder Fraud
- Stay educated: Resources such as the FTC and FCC websites, as well as your bank’s website, can be used to keep up on new forms of fraud and ways to avoid them. For instance, First Interstate Bank has several resources available to keep people in the know.
- Monitor accounts: Regularly check bank statements and account activity for new or unusual transactions.
- Communicate: Have regular and open conversations with trusted family members about financial decisions.
- Report suspicious activity: Immediately report any suspicious emails, texts, calls or app requests to your bank and local authorities. Block and be conscious of unwanted, suspicious calls.
- Give it time: If someone calls urgently requesting cash or a money transfer, even if their phone number looks to be correct, tell them you will call them back, and hang up.
Author: Doug Johnson is First Interstate Bank’s Arizona market president – Scottsdale and Chandler. For more information on elder fraud prevention tactics, stop by your closest branch or email Doug at Doug.Johnson@fib.com.
