Stay Safe: Top Scams Targeting Seniors and How to Avoid Them

As seniors enjoy their retirement years, they often become targets for scams due to their perceived vulnerability and accumulated wealth. While the reality is that anybody can be scammed, seniors are frequent targets. This type of fraud has reached epidemic proportions, and both the IRS and the Justice Department have launched initiatives to help prevent this type of fraud. 

As with many things, the old saying “an ounce of prevention is better than a pound of cure” holds true here. There are steps seniors can take to prevent scammers from taking advantage of them. The first step? Being well-informed. Knowing about the various types of scams is essential for safeguarding financial security and personal well-being. Today, we’re going to look at the top scams targeting older adults and give you the information you need to protect your financial well-being.

1. Medicare and Health Insurance Scams

Scammers frequently impersonate Medicare representatives, calling seniors to request personal information or offering fake benefits. It’s important for seniors to verify the identity of any caller claiming to be from Medicare and refrain from sharing sensitive details over the phone. Legitimate Medicare communications are not conducted through unsolicited calls. 

2. Social Security Scams

One common tactic involves scammers posing as Social Security Administration (SSA) officials, claiming issues with benefits or threatening legal action if immediate action isn’t taken. The SSA does not make threatening calls or request personal information over the phone. Seniors should hang up on suspicious calls and report them to the SSA’s Office of the Inspector General to prevent identity theft and financial loss.

3. Investment Scams

Fraudsters often target seniors with enticing investment opportunities promising high returns with little risk. These schemes can deplete retirement savings or investments. Seniors should exercise caution with unsolicited investment offers, conduct thorough research, and consult with a trusted financial advisor before making any financial decisions.

4. Lottery and Sweepstakes Scams

Scammers exploit seniors’ hopes of winning by falsely claiming they’ve won a lottery or sweepstakes. They then request upfront fees or taxes to claim the prize. Legitimate lotteries do not require winners to pay fees upfront. Seniors should verify the authenticity of such claims independently and avoid sending money or personal information to unknown callers.

5. Grandparent Scams

In emotionally charged scenarios, scammers impersonate distressed grandchildren needing urgent financial assistance with texts, emails, and even calls. They exploit familial trust to convince seniors to send money quickly. Seniors should verify the caller’s identity by asking personal questions only the real grandchild would know and confirm requests with other family members before taking any action. 

6. Tech Support Scams

Scammers pose as tech support agents from well-known companies, claiming there’s a virus on the senior’s computer that needs immediate fixing. Legitimate tech support does not initiate unsolicited calls. Seniors should hang up on suspicious calls and contact the company directly using verified contact information for any technical assistance or concerns.

7. Charity Scams

Following natural disasters or crises, scammers exploit compassion by soliciting donations for fake charities. Seniors should research charities thoroughly using trusted resources like Charity Navigator to verify legitimacy. Legitimate charities provide transparency about their missions, fund allocation, and impact of donations, ensuring contributions go to those in need.

8. Home Repair Scams

Fraudulent contractors offer low-cost home repairs, demand upfront payments, and deliver substandard work or disappear without completing the job. Seniors should obtain multiple quotes, check contractor references, and use written contracts specifying payment terms and satisfactory completion criteria. Avoid paying the full amount upfront to mitigate the risk of financial loss.

What to Do If You’ve Been Scammed

Even with precautions, scams can occasionally succeed. If you or a senior loved one suspects they have been scammed, prompt action is crucial to mitigate further damage:

Stay Calm and Act Quickly 

Immediately cease any further communication with the scammer. Remaining calm allows for clearer decision-making.

Document Everything

Keep meticulous records of all communications, including emails, letters, or phone calls, related to the scam. These records may be crucial for reporting and recovering losses later on.

Report the Scam

Contact your local law enforcement agency or consumer protection office to report the scam. The National Elder Fraud Hotline is also a good resource.

Notify Financial Institutions

If financial information was compromised, notify your bank, credit card company, or other financial institutions immediately. Request that they place a fraud alert on your accounts to monitor for any suspicious activity and prevent further unauthorized transactions.

Seek Support

Discuss the situation with trusted family members or friends for emotional support and guidance. It’s essential to seek assistance from professionals if needed, such as legal or financial advisors specializing in fraud cases. Taking these steps promptly can help mitigate the impact of the scam and begin the process of recovering any losses incurred.

At Casey State Bank, we want to protect your financial health and protect you from scammers. You can find out more about how to protect yourself with our SAFE security library and on our Casey State Bank blog.