Scams targeting older adults are unfortunately prevalent. Retirees are often seen as prime targets due to their savings or because they may live alone. Outdated stereotypes contribute to this vulnerability. Understanding these scams and knowing how to identify them is crucial for protection. This guide will outline common scams targeting seniors and provide resources for victims.
Understanding Common Fraud Tactics Targeting Seniors
Con artists use a range of tactics to deceive older individuals. Be aware of these approaches:
- Friendliness and Sympathy: Building rapport to make the victim feel supported.
- Creating Urgency or Fear: Pressuring quick decisions without rational thought.
- Appearing Helpful: Gaining trust to exploit later.
- Emotional Manipulation: Skewing judgment through heightened emotions. Researchers at Stanford found that seniors in a state of high emotional arousal are more susceptible to falsely advertised products.
- Impersonating Authority: Pretending to be associated with credible organizations (government agencies, charities) to appear legitimate.
- Ambiguity and Diversion: Changing the subject to confuse the victim.
Common Scams Targeting Seniors
The National Council on Aging (NCOA) identifies several common scams targeting seniors. Let’s examine these and other potential schemes.
Health Insurance Scams
Seniors are prime targets for medical-related scams due to their Medicare eligibility. Scammers often impersonate Medicare representatives and may:
- Request Social Security numbers for new Medicare cards.
- Demand fees for navigating Obamacare.
- Push unnecessary supplemental policies.
- Collect personal information to fraudulently bill Medicare.
If you are shopping for a Medigap plan, ensure you are working with reputable insurance providers.
Telemarketing Swindles
Telemarketing scams are a major threat to seniors, exploiting the lack of face-to-face interaction and using deceptive authority figures. Scammers may offer:
- Free trials
- Extended warranties
- Investment opportunities
- Cheap travel
- Prizes
- Advance loans
They may also impersonate IRS agents, investors, bank officials, or family members. Successful telemarketing scams can lead to the victim’s information being shared among other con artists. Legitimate institutions, including the IRS, will not request personal information over the phone. Hang up and contact the company or agency directly using a verified phone number.
The Pigeon Drop
This involves a “suspect offering a larger sum of money to the victim in exchange for a smaller sum of money”. A second or third person is usually involved to make the scam more convincing. This can happen in person or over the phone. An example is being told someone inherited money but needs a smaller amount to facilitate the transfer, promising a portion of the inheritance in return.
The Fake Accident Scenario
Scammers claim a relative or acquaintance is injured and needs immediate financial assistance for hospital bills. They pressure the victim to send money before verifying the information. A con artist may impersonate a police officer, doctor, or lawyer.
Robocalls
Robocalls may use pre-recorded messages to elicit a “Yes” response. This recorded voice signature can then be used to authorize fraudulent charges.
Apps to Protect Against Telemarketing Scams
Several free smartphone apps can identify and block scam calls:
- Hiya: Blocks numbers reported as spam.
- Truecaller: Identifies and blocks unwanted calls.
- Whoscall: Uses a large database to identify spam numbers.
To further protect yourself, join the Do Not Call Registry. Avoid engaging with suspicious callers, even if they ask you to press a number to be removed from the list.
Charity Scams
Scammers solicit donations for fake charities, exploiting the goodwill of others. They may contact seniors by phone or in person, often after natural disasters, pretending to raise money for a worthy cause. The goal may be to steal money or the victim’s identity.
Internet Fraud
The internet is a breeding ground for scams targeting seniors, including fake virus pop-ups, real viruses, phishing scams, and identity theft attempts.
Phishing Scams via Email: Scammers create fake emails that appear to be from legitimate businesses, requesting personal information to fix a purported issue. Never provide personal information via email. Instead, visit the website directly or call the company using a verified phone number.
Beware of unsolicited software downloads like “Free VPNs” or “Free Virus Checkers,” which may be malicious.
Tech or Computer Support Scams
Scammers offer tech support services or virus removal, sometimes with a senior citizen discount. They may install free security programs or use internet ads to entice victims. The primary goal is to access bank account passwords and other sensitive financial information. They may request permission to link their computer with the victim’s, or lock the victim out of their computer until a fee is paid.
Lottery and Fake Prize Scams
Victims are tricked into believing they have won a large sum of money, but must pay taxes and fees to claim it. After paying, they receive a check that doesn’t clear. Victims may also be contacted by someone impersonating a police officer investigating the scam, requesting financial information.
Counterfeit Prescription Medications
Scammers offer cheaper alternatives to prescription medications online. These counterfeit drugs can be harmful. Consult with loved ones before buying medication online.
Fake Anti-Aging Products
Scammers capitalize on seniors’ desire to look younger, offering costly treatments or homeopathic remedies that are ineffective or harmful.
The “Grandparent Scam”
A scammer contacts seniors pretending to be a family member in trouble, requesting money for rent, lawyer fees, or medical bills. They often ask the victim to keep the problem a secret. Variations include scammers contacting seniors through online dating sites or social media, building trust before requesting money.
Investment Schemes
Scammers impersonate financial advisors to gain access to seniors’ savings and account funds. They may also exploit religious affiliations or other aspects of their identity, offering investments in worthless ventures. Be wary of investment schemes with a sense of urgency or promises of free gifts.
Mortgage Scams
Con artists send official-looking letters offering to reduce property taxes for a fee. This information is often publicly available. Contact the county assessor’s office directly to verify any such claims. Homeowners with reverse mortgages are also targets, as it signals available equity to be exploited.
Funeral Fraud
Scammers target grieving widows and widowers by monitoring obituaries and claiming the deceased had outstanding debts. Dishonest funeral homes may also tack on unnecessary charges.
Bogus Magazine Sales
Young people sell magazine subscriptions door-to-door, claiming to raise money for a good cause or charity. Victims pay but never receive the magazines, and the money disappears.
IRS Impostor Scams
Scammers impersonate IRS agents, claiming unpaid taxes and threatening arrest or fines. They may demand immediate payment via credit card, debit card, gift cards, or prepaid cards. The IRS will never demand immediate payment or request payment via these methods. If contacted, hang up and call the IRS directly at 1-800-829-1040 to verify the communication.
What to Do if You Are a Victim of a Scam?
If you suspect you are a victim of a scam, contact someone you trust, such as a friend or family member. Report the details to the AARP and keep your local police station and bank phone numbers close by. Reporting the scam helps prevent others from becoming victims.
Conclusion
Protecting seniors from scams requires awareness and vigilance. Con artists exploit perceived vulnerabilities, but by understanding their tactics and common scam types, seniors can better protect themselves. If suspicious, a simple Google search can confirm suspicions. Stay informed, be cautious, and prioritize safety.
