Financial scams aimed at senior citizens are expensive, pervasive, and on the rise. The Federal Bureau of Investigation (FBI) estimates that 92,371 older people fell victim to fraud in 2022, resulting in losses of $1.7 billion. Losses increased by 74% from 2021 to this year.
Why do senior American citizens get targeted by Financial Scammers?
Due to the assumption that American elderly folks have a lot of money in the bank, scammers and con artists frequently target this segment. However, older Americans from wealthy backgrounds are not the only ones that are targeted. Fraud is a concern for older persons with low incomes as well.
Scams involving money are thought of as "low-risk" crimes since they frequently go undetected or might be difficult to prosecute. However, they may be devastating for many older folks and put them in a difficult spot with little chance of making up for their losses. It is so disheartening and devastating to see scammers ripping off the savings of elderly people and leaving them traumatized.
How often older American adults being Targeted by Financial scams?
The U.S. Senate Special Committee on Aging Fraud Hotline received more than 8,000 complaints from throughout the country in the five years ending December 31, 2020. These are the recorded ones. There are many instances in which the elderly people are threatened to prison, Kidnap and many other procedures which scares the victim to make the complain due to which many scams go undetected and unrecorded.
Why are these scams in rise? Are there any action being taken?
These scams are being operated through people operating in different countries which makes difficult for the prosecutor to take actions. Furthermore despite registering complains by many people the local authority either ignores the complain or take action for a limited time like 2 or 3 days and after that, they are released and they are back to scamming. The major countries highlighted for scamming American elderly people are majorly from India, Nigeria and so on.
Here is a Video aired in Jim Browning YouTube channel showing scammers getting arrested through the dedicated effort of scam baiters in India.
Here are the list of Top 10 Financial Scams targeting American Older Adults:
1. Government impersonation scams
In government impersonation scams, often termed government imposter scams, scammers pretend to be from the Internal Revenue Service (IRS), Social Security Administration, or Medicare when they phone vulnerable elderly persons. They can claim the victim owes back taxes and issue a warrant for their arrest or deportation if they don't pay up right away. If the victim doesn't provide personal identifying information, they could threaten to stop providing Social Security or Medicare benefits. The exploitation of this data for identity theft is therefore possible.
Certain payment methods, such as a wire transfer, prepaid debit card, or cash, may be demanded by government imposters. They frequently call from the same zip code or "spoof" a government agency's legitimate phone number using specialized technology (202 for Washington, D.C., for example). This may lead some individuals to believe the caller is legitimate.
2. Sweepstakes and lottery scams
Many individuals are aware of the sweepstakes fraud. Here, scammers phone an elderly person and claim they have won a lottery or some other form of award. The elder adult is required to submit money, cash, or gift cards in advance—oftentimes thousands of dollars' worth—to settle alleged taxes and administrative costs before they may receive their winnings. To gain the faith of their victims, con artists may pose as well-known sweepstakes companies (such as Publishers Clearing House). Naturally, no reward is ever given out. The older adult may occasionally be persuaded to pay further funds by fraudsters who promise to transmit their rewards as soon as possible. After scamming their victims of an initial quantity of money, many continue to phone them for weeks, months, or even years.
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3. Robocalls and phone scams
The "Can you hear me?" call is a typical robocall. The scam artist captures the senior's voice when they respond "yes" and hangs up.
Robocalls employ sophisticated, automated phone technologies to contact a lot of homes all over the world in a short period of time. While this technology has legitimate applications, robocalls may also be used to commit a number of frauds on unsuspecting senior citizens who pick up the phone. Some robocalls can say that the victim's automobile or electronic device's warranty is about to expire and that money is required to renew it. Scammers sometimes spoof the number from which they call to make it seem as though the call is from a reputable institution, similar to how government impersonator calls do.
The thief can then approve unauthorized transactions on products like stolen credit cards using their voice.
The "impending lawsuit" hoax is yet another well-known phone scam. The victim in this instance gets a frantic, terrifying call purporting to be from a government or law enforcement organization (like the police). They are warned that if they don't pay a fee by a specific date, they risk being sued or detained for a fictitious crime.
4. Computer tech support scams
Scams targeting technical help play on seniors' inexperience of cybersecurity and technology. On a computer or phone, a pop-up message or blank screen often notifies the victim that their equipment is broken and requires repair. The scammer may demand remote access to the elderly person's computer or that they pay a charge to get it fixed when they phone the support number for assistance. The Internet Crime Complaint Center (IC3) received 13,900 tech support fraud complaints in 2021 from senior citizens who lost close to $238 million.
"Tech support fraud is becoming more prevalent and targets some of the most naive people. Above all, keep in mind that genuine tech help won't ever aggressively seek you out to repair a problem, whether it be over the phone or through a website "Emma McGowan, an Avast privacy and security specialist, made this statement.
Real people who have suffered terrible losses at the hands of hackers are hidden behind the statistics. A guy from Illinois lost his life savings to scam artists posing as workers for a well-known antivirus business in 2021. These scammers got remote access to the man's bank account and home equity line of credit by pretending to repay him for unused software. In the end, they got away with about $200,000, money that was never found.
5. The grandparent scam
The grandparent scam is so straightforward but cunning because it preys on one of the most trustworthy traits in older adults—their hearts. Scammers phone prospective grandparents and ask, "Hi, Grandma, do you know who this is?" or something like. The con artist is able to gain the trust of the uninformed grandparent as soon as they guess the name of the grandchild they most resemble. The fictitious grandson then requests funds to address a pressing financial issue (such as overdue rent, car repairs). They can implore the grandmother to keep their secret. The older adult might never be able to get their money back since scammers sometimes request payment through gift cards or money transfers, which don't necessarily need identification to collect.
In various variations of this con, the caller presents themselves as a police officer making an arrest, a doctor, or a lawyer seeking to assist the grandchild. They then apply high-pressure techniques that prey on their victim's emotions in an effort to get them to pay money as soon as possible. Even tales of con artists visiting elderly people's homes while masquerading as "couriers" to take up the money have surfaced.
6. Romance scams
Online daters are increasing, and scammers are taking advantage of the trend. Romance fraudsters frequently use social media to set up complex phony accounts and profit from the loneliness of elderly people. These con artists may occasionally be located abroad or may pose as such. They can ask for money to cover the cost of travel to the United States, urgent medical care, and visas. Romance scams, sometimes known as "sweetheart scams," have a propensity to stretch on for a very long period and can defraud an elderly victim of a sizable sum of money. According to the FTC, elderly people fell victim to romance scams and lost $304 million alone in 2020.
7. Investment scams
This kind of fraud entails the unlawful or fictitious marketing of investment instruments that normally present the victim with little risk and certain rewards. People 60 and older experienced losses of more than $239 million in 2021 as a result of investment scams. Investment schemes frequently employ cryptocurrencies (digital assets like Bitcoin). In 2021, IC3.1 received more than 5,100 fraud complaints based on cryptocurrencies.
8. Medicare and health insurance scams
Medicare is available to all Americans and permanent residents over the age of 65, making it a great target for fraud. Scammers may impersonate a Medicare official in Medicare scams to get seniors to disclose their personal information. At impromptu mobile clinics, con artists may also offer false services to elderly clients before billing Medicare and pocketing the money. Scams involving Medicare frequently mimic the most recent developments in medical science, such COVID-19 vaccinations and genetic testing.
9. Internet and email fraud
Some elderly persons learn technology more slowly than others, making them easier prey for online and email frauds. Pop-up browser windows that imitate anti-virus software can trick users into installing a real virus that exposes information on their computer to scammers or a phony anti-virus package that costs a lot of money. Older folks are particularly susceptible to such traps since they are less familiar with the less obvious components of accessing the web (firewalls and built-in virus protection, for example).
Phishing emails and texts could include the logo of a reputable bank, credit card provider, or online retailer. They ask an older adult to update their credit card information or provide personal information, such a log-in or Social Security number, to validate that person's account. They then employ that information to steal money or further personal data. Learn how to defend yourself against phishing frauds.
10. COVID-19 scams
In relation to COVID-19 and stimulus payments, the FTC has already received more than 500,000 consumer complaints by June 2021. Of those allegations, fraud and identity theft accounted for 73%.
Follow these steps if you think you've been the victim of a scam
Scams may happen to anyone and are intentionally meant to catch us off guard. If you believe you are a victim, there is nothing to be embarrassed of. Keep the phone numbers of helpful resources close at hand, such as adult protective services, your bank, and the local police (if money has been stolen from your accounts). Call the Eldercare Locator, a government-sponsored nationwide resource line, at: 1-800-677-1116, or go to their website to learn how to reach Adult Protective Services in your region.
Online scams can also be reported to the FTC. By telling others about your story, you can stop it from occurring to another senior.