Financial scams targeting seniors are an increasing concern for Americans and the justice departments designed to protect them. The FBI saw a 14% increase in elder fraud complaints on its Internet Crime Complaint Center (IC3) in 2023, according to its 2023 Elder Fraud Report.
These resulted in adults over 60 years of age losing $3.4 billion dollars throughout the year — almost 11% more than the losses reported in 2022. According to the FBI, many of these crimes go unreported, so the true loss may be even higher.
Given the increase in senior fraud and scams, it's vital to know how to protect yourself from such bad actors. Here are five essential strategies:
- Don't give personal information when solicited.
Among the most common financial scams against seniors are government impersonation scams. In these scams, a person pretending to be a government agent from the IRS, Social Security Administration, or Medicare will call, email or message you online. This person may claim that your Social Security or Medicare benefits will be suspended if you don't provide personal identifying information. Or they may demand payment information to cover supposed unpaid taxes you owe.
As scary as these calls may be, they are always fraud. The government will never call you to ask for personal information or to demand payment over the phone unless you called them first.
Other callers may claim that you've won a lottery or sweepstakes, but need to provide payment upfront to cover processing fees or taxes. These are known as sweepstakes scams and aim to use the carrot rather than the stick approach to getting your personal information. Some callers may even claim to be from a credit repair company that wants to help improve your credit score. These are known as credit repair scams.
If you receive a call from someone demanding personal information, remain calm and immediately hang up the phone. Don't click any links in online or text messages you receive, as doing so could plant a virus on your device.
- Ignore tech support pop-ups.
The most common type of senior scam in 2023 were tech support scams, according to the FBI's report. In these scams, a pop-up message or blank screen may appear on your computer or phone alerting you to damage to your device. The message will prompt you to call a support number for help. When you do, the person on the other end of the line will request remote access to your device or demand an upfront fee to fix the problem.
If you get any such correspondence, do not engage. A legitimate tech support company will never reach out to you to fix an issue.
- Keep security software up to date and use multifactor authentication.
The second most common scam against seniors is a personal data breach. The best way to avoid this is to install security software on all of your devices — including your cell phone and any other device that connects to the internet — and ensure the software is up to date.
You should also use multifactor authentication whenever possible. Multifactor authentication is when you utilize more than one type of authentication to log into your accounts. For example, you may need to enter both a password and a one-time verification code sent to a separate device or account. Or you could combine your password with biometric authentication, such as your fingerprint or a face scan.
Using multiple authentication methods is the best way to prevent hackers from gaining access to your accounts with your password alone.
- Review your credit report regularly.
You may be a victim of identity theft and not even know it. Despite your best efforts to protect yourself from scams, fraudsters may still manage to gain access to your personally identifying information.
One of the best ways to spot this is through changes in your credit report, bills or credit card statements. Review each of these for changes you didn't authorize, such as a credit pull for a card you never applied for, or strange charges. If you see a charge you don't recognize, contact the company or the credit card issuer right away. If there's an error on your credit report, you should reach out to the credit bureau that issued the report to follow their dispute process.
- Don't transfer money to strangers or over the phone.
The ultimate goal of many fraudsters is to get money out of you. They may steal your identity first, or they may request you send them funds directly. To avoid the latter, never send someone who calls you out of the blue — even if that person claims to be a relative or tries to engage with you romantically.
Romance and grandparent scams are common among older adults. In a romance scam, the perpetrator attempts to gain your affection so they can either manipulate you into giving them money or outright steal it from you. In a grandparent scam, the caller will pretend to be your grandchild then tell you they need immediate financial help.
Be on your guard with anyone who asks for money over the phone or online. Ask probing questions and verify the caller's identity. If something feels off, it probably is. Ultimately, it's better to be safe than sorry.
6. Report suspected fraud attempts.
Following the above strategies will help you safeguard yourself and your loved ones from nefarious individuals seeking to defraud you. If you do find yourself or someone you know on the receiving end of a potential scam, report it immediately.
You can report phone or in-person attempts to your local FBI field office or online at tips.fbi.gov, or report internet-related attempts to the FBI's Internet Crime Complaint Center at ic3.gov.
The IRS, SSA and Medicare also have scam reporting hotlines. If the caller claims to be from the IRS, report the number they called from to the Hotline page of Treasury Inspector General for Tax Administration or by calling 1-800-366-4484.
You can report SSA scams online at oig.ssa.gov or by calling the Office of the Inspector General (OIG) at 1-800-269-0271. Report Medicare scams to identitytheft.gov.
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Matt Schulz is the Chief Credit Analyst at LendingTree and has been covering the personal finance space for more than a decade. He is a nationally recognized expert on credit cards, “buy now, pay later” loans, personal loans, credit scoring and reporting, small business lending and other aspects of personal finance. He’s been quoted in or appeared on Good Morning America, NBC Nightly News, The Wall Street Journal, The New York Times and hundreds of other media outlets around the U.S. and the world. He is a graduate of the University of Texas and lives in Austin with his wife and son.
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