June 15 is World Elder Abuse Awareness Day, making it a good time to shine a light on scams targeting seniors and how to avoid them. Below are five scams to watch out for. According to the FBI, older Americans lost nearly $4.9 billion through fraud last year, with an average loss of $83,000. That's 43 percent more than the previous year. Adults over the age of 60 also submitted the most complaints of any age group.*
Investment Scams
Investment scams were the most significant issue, based on the FBI's findings, with cryptocurrency investment fraud becoming an increasingly alarming problem. The Federal Trade Commission advises consumers to resist pressure to commit quickly, research investment programs, verify investment claims independently, and understand the risks.**
To avoid cryptocurrency scams in particular, it warns that only scammers demand payment in cryptocurrency and guarantee profits or big returns. In crypto investment scams, scammers often contact victims unexpectedly. They may even pretend to be a celebrity or a love interest asking for money or cryptocurrency. These scammers often promise large returns or make bold claims without offering detailed explanations.***
Tech Support Scams
Tech support scams often appear through pop-ups on a user's computer, phone, or other device. They may offer help, request remote access, claim that security software has expired, or report an emergency issue such as a severe virus. If you encounter this, ignore any requests and avoid calling any associated phone numbers. Shut your device down and restart it to eliminate the pop-ups. Then, report the incident to the authorities.
Funeral or Caregiver Scams
Funeral or caregiver scams are very common when it comes to targeting seniors.
"If you place an obituary in a local publication after a loved one dies, a thief might contact you and insist that your deceased relative left behind a debt that needs to be paid,” explains Rachel Hartman at U.S. News**** . “In another variation of this scam, the criminal might attend the funeral to gather information about you before asking for money to cover the debt. Someone pretending to be from the funeral home could call you and insist that there are extra charges that haven’t been paid. For all these attempts, refuse to send money immediately and ask for written documentation of the expense."
With caregiver scams, bad actors claiming to be caregivers or other healthcare workers may try to access your data and personal information in an effort to steal money from your bank accounts. Be sure to research and vet anyone who may be impersonating one of these workers. Also, be wary of individuals pretending to be government staff.
Reverse Mortgage Scams
Reverse mortgage scams are also common. CBS News advises being cautious of unsolicited offers and especially of aggressive sales tactics.*****
"One of the biggest signs of a reverse mortgage scam is when the salesperson uses high-pressure tactics to rush you into signing a contract," it says. "Scammers use high-pressure tactics to push you into a quick decision without giving you time to fully understand the implications. Legitimate reverse mortgage lenders should give you ample time to review and understand the terms of the loan. Be wary of anyone who tries to rush you into making a decision or who promotes a time-sensitive opportunity you'll miss if you don't act quickly. Legitimate businesses do not press customers, especially seniors, to sign a legally binding agreement before they're ready."
The Rise of AI
Artificial intelligence (AI) is now frequently used by scammers in a wide range of scams. Voice cloning, deepfake videos, and fake news alerts are just a few examples. Stay informed about the latest scams as technology continues to evolve rapidly. Learn the warning signs to better protect yourself.
As we recognize World Elder Abuse Awareness Day, remember that financial scams are a growing threat to our senior population—especially as scams become more sophisticated in the AI age. Understanding these threats is essential to helping our seniors better protect their identities and finances.
* https://www.aarp.org/money/scams-fraud/fbi-report-fraud-2024.html
** https://consumer.ftc.gov/articles/investment-scams#HTAIS
*** https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams#scams
***** https://www.cbsnews.com/news/reverse-mortgage-red-flags-seniors-should-know/