In 2023, according to the FBI, seniors aged 60 and older lost more than $3.4 billion to scams. This is an 11% increase from the previous year, as stated in the same report.
The thing is, many retirees fall victim to all sorts of scams for different reasons. Isolation, lack of familiarity with technology, trusting nature, and access to savings are the most common ones.
Scam texts, fraudulent phone calls, and suspicious emails have much to do with seniors being scammed online.
But what are the current scams targeting seniors? And how can they safeguard themselves from them?
Health Insurance Scams
Health insurance scams are a growing concern for seniors, with con artists frequently impersonating Medicare representatives or healthcare professionals to solicit personal information. These scammers often use high-pressure tactics to convince seniors to share their Medicare numbers, which can lead to significant financial losses. Each year, Medicare fraud costs an estimated $60 billion, which highlights the severe impact of these scams on the healthcare system.
What to do: Senior citizens can protect themselves by routinely checking Medicare statements for unusual charges and confirming the identity of anyone requesting their Medicare number with a Medicare representative directly.
Counterfeit Prescription Drugs
The rise of fake online pharmacies has led to a surge in counterfeit prescription drugs, posing severe health risks to seniors. These counterfeit medications often mimic real drugs but can be ineffective or even dangerous, as they might contain harmful substances. The health hazards and financial losses associated with these counterfeit drug scams are substantial.
What to do: Caution is necessary with online pharmacies that don’t require prescriptions or offer unusually low prices. Checking the legitimacy of these pharmacies through reputable sources can prevent falling for these dangerous scams.
Anti-Aging Product Scams
The desire to look and feel younger makes seniors prime targets for anti-aging product scams. Fraudsters promote counterfeit Botox and ineffective anti-aging remedies, often leading to harmful health consequences. Many of these products may contain dangerous substances.
What to do: Be wary of marketing claims that seem too good to be true and consult healthcare professionals before trying any anti-aging products, which can come in many forms. Staying skeptical and informed helps avoid these deceptive schemes.
Telemarketing Fraud
Telemarketing fraud preys on seniors’ trust and familiarity with phone purchases. Scammers often impersonate law enforcement or attorneys to add credibility to their requests for money.
What to do: Recognizing common types of telemarketing fraud can help seniors avoid these traps. Here are insights on three prevalent schemes: Some of the most common scams include the Pigeon Drop, the Fake Accident Ploy, and charity scams.
Internet Scams
Internet scams are increasingly targeting seniors, with tech support scams being among the most prevalent. These scams often involve fake pop-up messages that mislead users into seeking technical help, resulting in financial losses and compromised personal information.
What to do: To protect against internet scams, be cautious of unsolicited text messages and offers, and seek help only from legitimate computer sources. Staying informed about common online threats, including the risks associated with remote access and computer viruses, is crucial for safeguarding personal and financial security.
Investment Fraud
Investment fraud schemes target seniors by promising unrealistic returns with minimal risk. These financial scams often involve high-pressure sales tactics and a lack of clarity regarding the investment details. Common fraudulent investment schemes include Ponzi and pyramid schemes, which benefit earlier investors at the expense of later ones.
What to do: Ensure investment professionals are qualified by checking their registrations with state or federal regulators. Being thorough and cautious in investment decisions helps protect against fraud.
Homeowner and Reverse Mortgage Scams
Scammers often target seniors facing foreclosure by inflating their home’s value to secure a reverse mortgage and then taking ownership of the property. These schemes can lead to significant financial losses and even the loss of one’s home. Seniors should be wary of unsolicited offers related to reverse mortgages and claims that they can acquire a home without a down payment.
What to do: To avoid these scams, elderly adults must thoroughly research any business offers and consult trusted financial advisors.
Sweepstakes and Lottery Scams
Sweepstakes and lottery scams are a common scam tactic used by scammers to deceive seniors in a senior scam, often involving claims that the individual has won a lottery but must pay upfront fees or taxes to claim the prize. Scam artist tactics create a false sense of urgency, pressuring victims to act quickly.
What to do: Legitimate lotteries and sweepstakes do not require winners to pay fees to collect prizes. If you do not remember entering a contest, any claim of winning is likely a scam.
Grandparent Scam
The grandparent scam, also known as an emergency scam, is a heart-wrenching ploy where scammers manipulate emotions by claiming a relative is injured or in trouble, leading victims to send money quickly. Scammers frequently pose as family members or friends in urgent need of financial help due to accidents or legal trouble.
What to do: Verify money requests by calling the grandchild or their parents before sending funds. Scammers often gather personal information from social media or ask seniors for a grandchild’s name.
Let’s Recap
Seniors are targeted by a wide range of scams, from health insurance and counterfeit prescription drugs to telemarketing and internet fraud. Each scam preys on the trust, generosity, and sometimes the emotional vulnerability of older adults. So, that’s why it’s important for seniors to stay informed and vigilant to protect themselves against these malicious schemes.
The key to avoiding scams is skepticism and verification. Always double-checking unsolicited offers, verifying the identity of those requesting personal information or money, and consulting with trusted family and friends is essential.