There\u2019s a common assumption online that older people just don\u2019t \u201cget\u201d technology. Those of us who\u2019ve reached a certain age get pretty tired of the \u201cOK, boomer\u201d memes, and even millennials are now getting roasted by twenty somethings for being behind the times. <\/p>\n\n\n\n
It\u2019s mostly in good fun, but occasionally things take a darker turn. That\u2019s certainly the case when criminals target older people with senior scams, banking on a combination of their (real or mythical) inexperience with technology and the all-too-real potential for cognitive decline or simply misplaced trust. Let\u2019s take a look at the most common senior scams, and how to protect yourself (or your loved ones) against them. <\/p>\n\n\n\n
One is that fraud against seniors<\/a> is on the rise, from just over 60,000 reports in 2018 to over 88,000 in 2022. While that\u2019s a sharp increase in just five years, the total number of reports actually peaked at over 100,000 in 2020 and has subsided a bit since then, though the number of reports remains high (and we can say pretty confidently that not all incidents are reported). <\/p>\n\n\n\n The more concerning detail is that, while seniors are less likely to be scammed than younger victims, those who are<\/em> scammed are likely to lose more money. The record number of incidents in 2020 translated to roughly $1 billion in losses, or an average of $9,175 per victim<\/a>. In 2021, those figures rose to $1.7 billion in losses, or an average of $18,246 per victim<\/a> (a 74% increase). In 2022, losses skyrocketed to $3.1 billion, despite two years\u2019 decline in the total number of victims, at an average of $35,101 per victim (another 81% increase from 2021\u2019s record high). Of those victims, 5,456 lost over $100,000. <\/p>\n\n\n\n Losses like that would be a bitter pill to swallow at any age, but it\u2019s especially so for the elderly, who have limited opportunities to replace their losses. <\/p>\n\n\n\n There were seven crimes in the 2022 Elder Fraud Report that each accounted for over $100 million in losses. Of these, two \u2014 Business Email Compromise, or BEC, and personal data breaches \u2014 aren\u2019t scams in the traditional sense, and therefore fall outside the scope of this article. <\/p>\n\n\n\n That leaves five scams that account for a disproportionate percentage of total dollar losses, making them the ones we most need to be aware of. In declining order, they are: <\/p>\n\n\n\n Investment scams alone accounted for nearly a billion in losses, accounting for over $990 million of 2022\u2019s total. There are too many kinds of investment scams<\/a> to cover here in detail, but most follow a fairly consistent pattern. <\/p>\n\n\n\n The initial approach may come in the form of a phone call, an email or an actual physical letter, and the pitch is usually that there\u2019s an opportunity \u2014 almost always involving some kind of time constraint \u2014 to make above-average returns through some sort of investment. Usually it\u2019s presented as being novel in some way: a new sector like electric cars, an emerging market somewhere overseas or more usually cryptocurrency. Occasionally, in a nod to elder investors\u2019 innate conservatism, the pitch will involve something more familiar like gold and silver. <\/p>\n\n\n\n The common theme is that investors are offered higher-than normal returns at lower-than-normal risk, which is a combination that essentially doesn\u2019t exist in the real world<\/a>. The underlying scam may be a classic Ponzi scheme (using new investors\u2019 money to pay earlier investors, while skimming off most of the money) or a more modern variation on the theme \u2014 but in any case, the unwary investor\u2019s money is gone for good. <\/p>\n\n\n\n Tech support scams<\/a> play on seniors\u2019 perceived bafflement with technology, though in fairness, younger people fall for these, as well. Again, there are lots of variations on the theme but they almost invariably revolve around persuading you that there\u2019s a problem with one or more of your devices or accounts, and that they\u2019re going to help you fix it. <\/p>\n\n\n\n The initial approach may come in the form of a phone call, a text, an email or even a pop-up in your browser window that contains an alarming message (aka \u201cscareware\u201d). Often it will warn you that there\u2019s a problem with our computer \u2014 from a software issue to a virus \u2014 and the friendly tech support people will help you fix it. <\/p>\n\n\n\n Depending on the scammers\u2019 goals, they\u2019ll either request payment directly for their bogus services or potentially ask you to give them control of your devices or have you download an app. If you give them a payment you lose your money and potentially hand them your banking information; if you give them control of your device \u2014 or install an app loaded with malware \u2014 you may give them access to everything you see and do on that device. <\/p>\n\n\n\n A variation on the tech support scam tells you that there\u2019s an issue with your account at one or another of the big sites \u2014 Amazon, perhaps, or Netflix \u2014 and that you need to log in to your account to fix it. If you click the supplied link you\u2019ll be taken to a bogus version of the site<\/a>, where your login information will be stolen and malware potentially installed on your devices. <\/p>\n\n\n\n The term isn\u2019t used as much any more, but confidence scams \u2014 the origin of terms like \u201ccon man\u201d and \u201ccon game\u201d \u2014 are one of the classic forms of fraud. The criminal gains the victim\u2019s confidence, and then uses it to loot their money. Many seniors find themselves living alone after being widowed or divorced. They\u2019re relatively easy targets for romance scams, of either the conventional variety<\/a> (originating on dating sites or social media) or the longer-term, big-money \u201cpig-butchering\u201d scams<\/a> that target affluent seniors. In some cases the romance may take place in real life, with an opportunistic grifter wooing the senior \u201clive and in person.\u201d In any case, the scam usually involves either an investment opportunity or a sudden \u201cemergency\u201d that puts the new crush under a stern financial obligation (\u201cI really hate to ask, but could you possibly help \u2026?\u201d). The money will go away, and so \u2014 once the well runs dry \u2014 will the new love. <\/p>\n\n\n\n There is an exception to this rule, where the scammer potentially marries the senior or gains their power of attorney, in which case they\u2019re in a position to loot the entire estate. That walks the fine edge of legality, and can be very difficult for concerned family members to counter. <\/p>\n\n\n\n This type of scam has been widely publicized, so you\u2019re probably familiar with it. The victim gets a call (or a letter or an email, but usually a call) claiming to be from the IRS<\/a>, the SSA<\/a> or some other government agency. Usually they take a threatening tone: you owe the IRS money; or your SSN has been connected with criminal activity; or your Social Security benefits are to be cut off for some reason. The caller bullies the victim into making immediate \u201crestitution\u201d \u2014 typically in the form of a wire transfer, gift cards or even cryptocurrency, all of which are difficult to trace or reverse \u2014 in order to avoid a criminal trial and possible jail time. <\/p>\n\n\n\n There are a few variations on the theme, and some even dangle a carrot instead of brandishing a stick. You might be told that your Social Security benefits are increasing, for example, or that the IRS has discovered that you\u2019ve overpaid and that they\u2019re going to reimburse you. All they need is for you to \u201cverify\u201d your banking information so they can make the deposit. Of course, once you\u2019ve given them that information, they\u2019ll use it instead to drain your account. <\/p>\n\n\n\n The last of the current Big Five is real estate scams. Owning property is one of the most reliable ways to accumulate wealth for retirement, but property itself isn\u2019t \u201cliquid\u201d \u2014 meaning, you can\u2019t just spend a few feet of your mudroom for groceries. Seniors may choose to sell their home and downsize, or rent out their home and live somewhere else, for example. In any case, this creates opportunities for scammers to cash in. <\/p>\n\n\n\n If you\u2019re downsizing to a smaller home, for example, scammers may send an email \u2014 posing as your realtor or banker \u2014 making a last-minute change to how your closing costs and deposit should be transferred<\/a> (which sends the funds to the scammers, of course). If you\u2019re renting a property, a supposed renter may send you a check for the rent and deposit, and then \u201creluctantly have to cancel.\u201d <\/p>\n\n\n\n If you\u2019re looking for a rental to live in (short-term or long-term) because you\u2019re selling your house, you may run into scammers posing as landlords<\/a>. Often they\u2019ll create duplicates of legitimate listings, detailed to the point of using an email address that sounds like the real landlord\u2019s (or property manager\u2019s) name. They\u2019ll ask for whatever state law allows as an initial payment (first and last month, damage deposit, whatever they can get away with) but when you show up to take possession, it turns out to be bogus. <\/p>\n\n\n\n While those five scams account for most of the financial damage to seniors, a few others are noteworthy as well. <\/p>\n\n\n\n You\u2019ll get a call, often on a bad connection, from someone claiming to be one of your grandkids (\u201cHey, grandma, guess who this is?\u201d is a common ploy). They\u2019ll have a story about being in trouble in one way or another, and needing money to pay a fine or catch up on a bill. But it\u2019s bogus, and the money\u2019s lost. <\/p>\n\n\n\n These rely on different stories \u2014 you\u2019ve won a sweepstakes or lottery, or a distant relative has died and left you money \u2014 but in each case you\u2019ll have to pay some form of \u201ctaxes\u201d or \u201cfees\u201d in order to claim your non-existent prize. <\/p>\n\n\n\n Phishing through email<\/a>, texts (\u201csmishing<\/a>\u201d) and even voice calls (\u201cvishing<\/a>\u201d) is an attempt at getting you to click a link or call a number that\u2019s controlled by the scammers. There\u2019s always a plausible reason for it, and they may very legitimately look like someone you really do business with (phone numbers and emails can be faked, or spoofed) but the goal is to harvest your personal information or payment information. Scammers might also infect your devices with malware, giving them access to further accounts. <\/p>\n\n\n\n All of these scams work by leveraging triggers that are built into human nature: our tendency to trust others (especially if we\u2019ve formed some sort of bond with them); our desire for gain; a respect for (or fear of) authority; and so on. Just knowing that these scams exist, and reading how they work, can help \u201cinoculate\u201d you against them by planting a seed of doubt. <\/p>\n\n\n\n You can also rely on telltale red flags that mark most scams. Almost invariably you\u2019ll find yourself under pressure to act right this minute<\/em>, lest something bad happen (or, in some cases, lest you miss out on something good). <\/p>\n\n\n\n A real IRS representative will never demand immediate payment<\/a>, for example. Also, employees of government agencies won\u2019t dictate how you pay. Demands that you pay by gift card, prepaid debit, wire transfer or cryptocurrency are a sure-fire sign of fraud. <\/p>\n\n\n\n For more complicated scams, like pig-butchering or real estate scams, you\u2019ll need to set aside any inclination to trust people and do some sleuthing. Before you give your heart, pay any kind of deposit or accept a check, turn to Spokeo\u2019s people search tools and use the Name Search<\/a>, Reverse Phone Lookup<\/a>, Email Lookup<\/a> and Address Lookup<\/a> to verify who you\u2019re dealing with. Don\u2019t click provided links; go to the website on your own and look up the information there. <\/p>\n\n\n\n If you\u2019ve already fallen for a scam, and have lost money or personal information to scammers, there are several things you should do as soon as possible. The first is to report the incident to your local law enforcement, the FBI\u2019s Internet Crime Complaint Center (IC3)<\/a> and the FTC\u2019s Report Fraud<\/a> website. That last site is especially important, because it will walk you through creating a personalized recovery plan to help minimize the damage. <\/p>\n\n\n\n If there\u2019s the slightest chance that criminals have your banking or credit card information, reach out to those institutions as well to file a report. You should change any passwords or PINs, and take advantage of any services your bank may offer to help detect questionable transactions. You should also set up some form of added authentication, beyond your user name and password, to make it harder for scammers to gain unauthorized access to your account. <\/p>\n\n\n\n The hard reality is that once your money is gone, it\u2019s usually gone forever. Most institutions will cover you if your money is lost due to a hack or identity theft, but if you\u2019ve fallen for a scam and given up your money voluntarily, your bank won\u2019t make it good for you. The best you can usually do is make it harder for the scammers to further exploit any information they\u2019ve stolen. We\u2019ve written about that, and other steps in recovery, previously on this blog<\/a>. <\/p>\n\n\n\n In the final analysis, being older doesn\u2019t necessarily mean that we\u2019re easy marks. Collectively, those of us who\u2019ve been around for a while have a lot of learned experience that can serve us well, if we harness it correctly. We have \u2014 as they say \u2014 \u201cbeen there, done that,\u201d though we may occasionally forget where we\u2019ve put the T-shirt. <\/p>\n\n\n\n Lean into that experience. If you\u2019ve had someone take advantage of you before, or abuse your trust, you probably remember it in painful detail. If anything about a new person or situation reminds you of that one, trust your gut and think of it as a red flag. Don\u2019t forget the cumulative wisdom of our forebears, either. Observations like \u201cIf it\u2019s too good to be true, it probably is,\u201d and \u201cThere\u2019s no such thing as a free lunch\u201d still hold true, and you can add \u201cIf the answer has to be now, it has to be no\u201d to your list. <\/p>\n\n\n\n Those time-honored truisms can save you a lot of trouble, especially if you back them up with a dose of healthy skepticism. Age \u2014 it\u2019s said \u2014 breeds wisdom, but proving it is up to each of us. <\/p>\n\n\n\n Sources:<\/strong><\/p>\n\n\n\n There\u2019s a common assumption online that older people just don\u2019t \u201cget\u201d technology. Those of us who\u2019ve reached a certain age get pretty tired of the \u201cOK, boomer\u201d memes, and even…<\/p>\n","protected":false},"author":112,"featured_media":26683,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[614],"tags":[],"class_list":["post-26681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-safety"],"yoast_head":"\nThe Costliest Senior Scams\u00a0<\/h2>\n\n\n\n
Investment scams<\/h3>\n\n\n\n
Tech support scams<\/h3>\n\n\n\n
Confidence and romance scams<\/h3>\n\n\n\n
One current confidence scam, for example, has the criminal posing as an officer of your bank or credit card company. You\u2019ll be told that there\u2019s an employee suspected of embezzlement, and they\u2019re asking for your cooperation<\/a> in a \u201csting\u201d operation to catch the culprit. Your part in the process is simply to transfer some funds into such-and-such an account, to serve as the bait in the trap. The account, of course, is controlled by the criminals and the money is gone forever. In a variation on the theme, the scammers may target your banking information and then use that to drain your account. <\/p>\n\n\n\nGovernment impersonation scams<\/h3>\n\n\n\n
Real estate scams<\/h3>\n\n\n\n
Other Scams to Be Aware of<\/h2>\n\n\n\n
The \u201cGrandma\u201d scam<\/h3>\n\n\n\n
Lottery, sweepstakes and inheritance scams<\/h3>\n\n\n\n
Phishing scams<\/h3>\n\n\n\n
How to Protect Yourself From Senior Scams<\/h2>\n\n\n\n
What to Do if You\u2019ve Fallen for a Scam<\/h2>\n\n\n\n
Lean Into Your Experience<\/h2>\n\n\n\n
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