Beware of Financial Scams Targeting Seniors

Scammers can impersonate U.S. Government agencies familiar to seniors such Internal Revenue Service (IRS), Social Security Administration (SSA), Department of Health and Human Services/Centers for Medicare, and Medicaid Services (HHS/CMS). Threats from these scams can include severe legal or financial consequences and require payment to resolve such matters.

Phishers are scammers that trick people online into providing sensitive information using spam, malicious websites, email, and/or instant messages. Online phishing for personal information can come from what seems to be a legitimate trustworthy source. For example, scammers can spoof the Caller ID, altering it to something recognizable.

In this type of scam, a scammer contacts a grandparent either posing as a member of their family or communicating for the family member, revealing they are in trouble and need money fast. Scammers can give personal information about the family member to sound believable, usually found on social media or public sources. They may claim the family member is in legal, medical, or international trouble. The scammer manipulates the grandparent into sending money to help their family member in need.

A lottery or sweepstakes scam is any communication notifying someone that they have won a financial prize, but the catch is that they must pay fees or taxes to claim it. There is often a sense of urgency created by telling the “winner” to communicate back and pay in a short period of time or risk losing the winnings. In 2020, $166 million was lost to lottery and sweepstakes scams and 72% of these scams targeted the elderly. Don’t ever pay to claim winnings. Legitimate lotteries and sweepstakes do not ask for money.

Romance scammers create a fake identity on a social media platform or dating site and form an online relationship with someone to gain their trust. The scammer uses the illusion of a relationship to manipulate the victim into sending them money. Reports from the FTC show that in 2020, over 32,000 consumers filed a romance scam report and $304 million was stolen from victims as a result.

Most investment scams give false promises of high returns while using high pressure sales tactics to make someone invest right away. If a salesperson makes it seem like you’re going to miss out on a once-in-a-lifetime opportunity, you have a good reason to stay away. Always conduct research to have a good understanding of what your money is going towards.

Victims of this scam may receive an unsolicited phone call from a tech support company claiming they are calling to fix a computer issue. Victims may also see a fake online pop-up warning them about a non-existent computer problem. The scammer can trick the victim into believing they need tech support and can ask for the ability for remote computer access. With remote access the scammer can install malware and steal personal information. They may ask the victim to pay a large sum of money for unnecessary or harmful services. FTC’s Protecting Older Consumers report found that older adults are six times more likely than young consumers to report losing money from a tech scam.