15 Warning Signs of a Scam Targeting Seniors
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Scams targeting seniors can cause devastating financial and emotional consequences. A scam targeting seniors can cause emotional turmoil, debt, homelessness, and worse. Older senior citizens are often trusting and vulnerable. Worse, scam artists go out of their way to identify, target, and victimize seniors suffering from loneliness or senility.
Scammers know how to exploit the goodwill and naivete of seniors to manipulate them for monetary gain. 21st-century scam artists evolve with the times. They now use the internet, bots, and algorithms to search out the most suitable victims for their scams. The elderly are the most vulnerable picks for such scammers.
Still, these scams also affect the family, friends, and social circles of victimized seniors. If you or someone you know is a senior citizen, you should learn the patterns and warning signs of Here are 15 telltale warning signs of a scam targeting seniors.
1. Funeral Debt Scams
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This is one of the most outrageous types of scam targeting seniors. The scammer researches local obituaries and social media posts to learn about the recently deceased in their area. The scammer will show up at the funeral claiming the deceased owes them a large outstanding debt and demand repayment. Never entertain such claims. Involve police or a lawyer if the scammer tries to stalk you.
2. Broken Heart Romance Scams
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This type of scam targeting seniors is also very cruel. Scammers use bots to scan social media and dating apps, cherrypick victims, and use the data they learn to ensnare seniors in a cruel romance scam. Usually, the scam relationship is digital and long-distance only. The scammer uses fake pics and personas to convince the victim they love them. Then, they pressure the victim to send money often. Never trust rapid, online romances with strangers who demand money.
3. Natural Disaster Scams
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Scam artists get real busy after a natural disaster like a hurricane, earthquake, or flood strikes. People become overly charitable without verifying people or organizations. Scammers are more likely to target the elderly during these times. Be wary of unsolicited calls from people trying to guilt or force you into sending money to a charity connected to a natural disaster.
4. Sweepstakes or Lottery Scam
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The sweepstakes scam targeting seniors is very widespread. The scammer will excitedly tell the victim that they won a sweepstakes or lottery that they never entered. However, the only way to receive the money is to first pay a claimant fee, or taxes, or give up their bank account information. Once the scammer gets payment or cleans out the victim’s bank account, they disappear. Never believe anything that appears too good to be true.
5. The Grandparent Savior Scam
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To start the Grandparent Scam, also known as the Grandparent Savior Scam, a scam artist will first use public data and social media to identify the immediate relatives of the victim. The scam artist learns the names of close relatives to make themselves sound trustworthy. The scammer calls posing as police or FBI and informs them that a young relative has been kidnapped or is in danger.
Some heartless scammers will even pretend to be a relative in distress to pressure seniors grappling with senility. Then, they urge the victim to send cash or wire transfers to save their kin. The biggest warning sign of this scam targeting seniors is the scam artist vaguely identifying themselves, using threats, coercion, and veiled intimidation to get money while posing as police.
6. IRS Scam
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This scam targeting seniors is active every tax season. The scammer makes an unsolicited call pretending to be an IRS agent. They tell the victim they need personal financial data to sort out a problem with their return. Then, the scammer will commit identity fraud or even file a fraudulent tax return using the victim’s data. Government agencies send letters to contact citizens. You have to call them to conduct business. Be suspicious of IRS agents calling unsolicited asking for personal data and money.
7. Medicare Scam
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In this scam targeting seniors, the scam artist pretends to be a Medicare representative via an unsolicited call. The scam artist wants to “verify,” the victim’s account and demands their Medicare number or other information. Some scam artists will tell the victim their Medicare account will be suspended unless they pay money. It’s vital to remember that government agencies require you to call them to clear up issues.
8. Social Security Scam
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This is another scam targeting seniors that is very profitable for most scam artists. Over 70 million Americans depend on SSA payments. Over 85% of SSA recipients depend on the payments to cope with a life-altering disability, like blindness. Scam artists can get a list of SSA recipients, cold call them, and pose as SSA representatives. Then they demand money, wire transfers, or gift cards to prevent the suspension of payments. Government agencies require you to contact them to sort out issues; it’s odd to be contacted by a representative personally demanding money.
9. Law Enforcement Scam
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This is a cruel scam targeting seniors that uses terror and fear of arrest to get money from victims. Savvy scam artists will specifically target lonely seniors or those grappling with senility for this one. They call pretending to be police or FBI and inform the victim that arrest is imminent. They demand money, wire transfers, gift cards, or financial data to stop the arrest. You should never believe unsolicited, threatening calls that phish for data to prevent an arrest for an unspecified crime.
10. IT Tech Support Scams
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Less than 41% of senior citizens are tech-savvy and use computers. Scammers use this data to their advantage. Scammers call their victims posing as IT or tech support from Microsoft or Apple. They then scare the victim by telling them their computer has viruses. The victim is tricked into giving financial data. Or, they are coerced into giving the scammer remote control access to their computer so that data-siphoning malware can be installed. It’s your job to fix your computer, so never trust unsolicited phone calls, texts, or emails from strangers wanting to help for money.
11. Covid Scams
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The scam artist will ask for donations for a hoax covid charity. Or they instill fear in the victim with reports of a new pandemic. The scam artist will then use false medical scare tactics to panic the victim into sharing financial or health insurance data. The scammer then gets money directly or commits identity fraud. Always be proactive when donating to charities and be wary of unsolicited covid-based charity calls.
12. Elder Abuse Financial Scams
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This is one of the worst types of scams targeting seniors. Elder abuse is a crime where a close relative, friend, or caregiver callously abuses or scams a senior. The trusted scammer uses emotional, manipulative, or physical abuse to gain legal access to the senior’s bank accounts, assets, lines of credit, investments, or properties. They can use their access to the victim to force them to sign over power of attorney documents.
13. Ponzi Scheme
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A Ponzi scheme is a never-ending scam cycle of fresh, new investors being tricked into buying into a too-good-to-be-true investment scam to pay off existing and older investors. The scam steals as much as it can and disappears before the entire scam falls apart. Beware any unsolicited plea for investments that sounds too good to be true.
14. False Investment Scam
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Senior citizens are always at risk of investment scams because many assume they have saved money over a lifetime. The scammers contact the victim with a hoax investment scam and promises of large ROIs. Then, the scammer steals their money or spends months coercing them to send more money for the nonexistent investment before disappearing.
15. Charitable Gift Annuity Scam
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A charitable gift annuity is a complex financial arrangement between a donor and a charity or other nonprofit like a university. They donate gifts to the charity in a large sum of money. The money is then put into an account and invested with tax benefits for the donor. The donor gets an annuity or regular payments from the investment for life. After death, the charity gets the rest. For this scam targeting seniors, the scammer must be savvy and choose a victim with money. Once the victim gives the money to the scammer, they get ghosted. Never donate charitable gift annuities unsolicited to strangers.
A Scam Targeting Seniors Is Easy to Spot
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Check up on any senior citizens in your life who may be dealing with senility and independence issues. Besides that, always use common sense to avoid being scammed. Never trust threatening strangers who call or email you demanding additional information from you to help while also demanding money. Government agencies require you to contact them, so beware of anyone posing as a representative and demanding money.
If it sounds too good to be true, it is. Scam artists thrive on the understanding and forgiving nature of strangers, especially the elderly, so always be cautious of strangers who demand your money.
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Allen Francis is a full-time writer, prolific comic book investor and author of The Casual’s Guide: Why You Should Get Into Comic Book Investing. Allen holds a BA degree from Marymount Manhattan College. Before becoming a writer Allen was an academic advisor, librarian, and college adjunct for many years. Allen is an advocate of best personal financial practices including saving and investing in your own small business.
