The rise of fraud against older adults: Warning signs and safety measures

Financial scams are a growing problem, with older adults among the most frequent targets. In 2023 alone, people over 60 lost approximately $3.4 billion to fraudulent schemes. Scammers exploit their financial stability, trust, and sometimes lack of familiarity with modern technology.

These crimes often go unreported because victims feel embarrassed or fear they won’t be believed. Understanding the common scams and knowing how to prevent them can help seniors and their families protect their finances.

Common scams that target older adults

Scammers use various tactics to trick seniors into giving away money or sensitive information. While fraud can take many forms, some scams are more prevalent among older populations.

Grandparent and impersonation scams: One manipulative scam involves fraudsters posing as a grandchild in distress. They trick victims into guessing a name and then fake an emergency, demanding money.

Scammers now use AI to clone real voices, making their deception more convincing. They urge secrecy and request payments through gift cards, wire transfers, or cash drop-offs. Another common scam involves fraudsters posing as IRS, Medicare, or Social Security officials. Using spoofed caller IDs, they pressure victims into paying fake debts under the threat of legal action.

Tech support and business scams: Many older adults fall victim to tech support fraud. Scammers send fake pop-up messages or call pretending to be from Microsoft, Apple, or a cybersecurity company. They claim the victim’s devices have a virus and request remote access. Once inside the smartphones, computers, or tablets, they install malware to steal passwords, lock files, or demand a ransom to “fix” the issue.

Similarly, scammers impersonate banks, utility providers, or charities, tricking seniors into handing over personal details. Business-related frauds may include phony sweepstakes, where victims are told they’ve won a lottery but must first pay taxes or fees to claim the prize.

Romance, investment, and identity theft scams: Online dating scams are rising among older adults. Fraudsters create fake profiles, gain trust, and invent emergencies to request money. Victims often send thousands, believing they are helping a real partner.

Investment fraud is another risk. Seniors seeking to grow their savings may fall for schemes promising high returns. Cryptocurrency scams are increasing, with many losing money to fraudulent platforms.

Identity theft is a growing threat. The Identity Theft Research Center (ITRC) reported a 68% rise in U.S. data breaches since 2020. In 2021, the Federal Trade Commission (FTC) recorded 5.7 million fraud and identity theft cases.

Canada faces similar issues. Annually, 12 out of 100,000 residents fall victim to identity theft, while 52 experience ID fraud, leading to financial losses and credit damage. Seniors active in online communities are prime targets. Scammers pose as friendly strangers or advisors, gaining trust before stealing money or personal information.

How to recognize and prevent scams

While scams are constantly evolving, recognizing red flags can help prevent financial losses. Understanding common tactics and taking proactive measures is key to staying protected.

Warning signs of a scam

Urgent or threatening language: Scammers often pressure victims into acting immediately, claiming an emergency or legal consequence.

Unusual payment requests: Legitimate businesses and government agencies never demand payments through gift cards, cryptocurrency, or wire transfers.

Unfamiliar or spoofed phone numbers: Caller ID manipulation allows scammers to display fake numbers, making it appear as if they are calling from a government agency or bank.

Requests for personal information: If someone asks for Social Security numbers, bank details, or passwords over the phone or via email, it’s likely a scam.

Too-good-to-be-true offers: Whether it’s lottery winnings, high-return investments, or free vacations, scams often promise unrealistic rewards.

Steps to Protect Yourself

Verify the caller’s identity: If a grandchild or official calls unexpectedly, hang up and contact them using a verified number.

Limit information sharing: Be cautious about sharing personal details online or over the phone, especially with strangers.

Enable security measures: Use two-factor authentication for banking and email accounts, and keep antivirus software updated.

Ignore unsolicited contacts: If an unknown person contacts you about a financial opportunity, assume it’s a scam and do not engage.

Consult a trusted source: If unsure about a request, ask a family member, friend, or financial advisor before taking any action.

Reporting scams and seeking help

If you suspect you’ve been targeted by a scam, taking immediate action can help minimize the damage. Start by contacting your bank or credit card provider if you have shared any financial details, as they can block unauthorized transactions and secure your accounts. Next, report the scam to the appropriate authorities, such as the Federal Trade Commission (FTC), the Internet Crime Complaint Center (IC3), or your local consumer protection agency.

Monitor your credit for unusual activity and consider freezing it to prevent identity theft. Fraud can also take an emotional toll, so seek support from a counselor or a support group if needed.

The importance of awareness and vigilance

Financial scams remain a serious risk, especially for older adults. Staying informed through education and strong security practices is key to prevention.

Families should discuss financial safety often, helping seniors recognize scams and stay cautious. Skepticism toward unexpected requests can protect their savings and personal data. Reporting scams increases the chances of recovering lost funds and helps protect others. Awareness and vigilance are the best defenses against fraud.