Yahoo Finance Beware of scams targeting senior citizens: Here's tips to protect yourself or a loved one
Scams against older consumers are on the rise as more people have turned to online methods of communication and scammers have expanded their tactics.
June is Elder Abuse Awareness Month. USA TODAY spoke to two financial experts for tips on how older consumers can protect themselves from becoming victimized.
What is an elder scam?
Though scams can victimize consumers of any age, financial crimes against senior citizens ages 60 and older are on the rise. The number of victims and amount lost to scams in various reports differs greatly.
The FBI's Internet Crime Complaint Center said in a report released in April that the number of elder fraud complaints it received rose 14% from the previous year with 101,000 victims in 2023. Collectively, those victims lost $3.4 billion, the agency said.
Meanwhile an AARP report in 2023, using data from multiple reports, including the FBI's, estimated that victims over 60 had lost $28.3 billion to scams every year.
The number is probably higher, said Darius Kingsley, head of Consumer Banking Practices at Chase, who notes that there often is a level of shame that keeps victims from reporting the crime.
"With scams, it's such a personal thing and it's just so mortifying and embarrassing that people don't want to admit it," Kingsley said in an interview with USA TODAY. But victims should not feel ashamed because even savvy consumers can fall victim to the sophisticated crimes, he said.
"Whatever the number is, it's probably bigger than that just simply due to the lack of reporting around it," he said.
The growth in scams includes "focusing specifically on consumers and trying to take advantage of those most vulnerable in society," said Jeffrey Bashore, senior vice president for bank fraud operations for USAA.
Bashore told USA TODAY one of the most important things to do is "to help arm consumers with information on what to be looking for and how to recognize what could be someone trying to take advantage of them through fraud or a scam."
What are some top scams targeting older adults?
Here are some scams that often target older adults – and tips from Chase and USAA on how to help prevent them:
Artificial intelligence scams. Scammers are using AI to clone voices, posing as friends or family. A phone call will sound like a loved one in trouble, requesting money urgently. Kingsley suggests having a code word with your friends and family to verify their identity. Also, hang up and call back a known number for the person.
Romance scams. Be wary of any romantic interests or new friends asking you to send them money, especially if you’ve never met in person. Never send money to anyone you don’t know well, met online or have never met in person.
Tech support scams. Don't fall for pop-up messages on your computer or phone saying there's a problem. Don't give remote access to your computer or pay any fees. Also, beware of fake emails that seem to be an invoice for something you didn't order or a fake receipt for something you didn't pay for, meant to get you to click for more information.
Familiar bank or company impersonations. Scammers will pretend to be from a reputable company to warn you about problems with your account or order. They'll try to trick the consumer into sharing personal or financial information. Don't pick up phone calls from numbers you don't recognize or answer unsolicited texts, Bashore said.
Government or law-enforcement impersonations. Scammers will pose as representatives from the IRS, Social Security or law enforcement, demanding immediate payments or threatening law-enforcement action. The government will not call you to demand urgent action or threaten you. In most instances, government officials will contact you by mail if there is a problem.
Investment scams. If something sounds too good to be true, it probably is.
Tips to avoid being scammed
Use these tips from Chase to identity potential scams or fraud:
Demands for urgent action and sharing of personal information. Scammers will usually have a sense of urgency, and you may be threatened with losing money or access to your accounts or even arrest if you don't comply.
New, sudden relationships that take an interest in your money. Financial abuse often happens from a person known to the victim. It might be a caretaker or a newly found friendship. Be careful of any new friends who approach you with investment opportunities or take an interest in your finances.
Unusual financial activity. If you see withdrawals or changes to your accounts, or if you see your loved one suddenly making changes to financial accounts, contact the financial institution.
Wrong number. Some scammers will text or call someone, hoping you'll answer saying it's the wrong number, Kingsley said. Then they'll try to get friendly with you to get your defenses down.
What should you do if you're the victim of a scam?
Contact authorities and your financial institutions as soon as possible, Bashore said. Don't be ashamed about what happened and seek help.
"There is that risk of the intense fear, the shame, the anxiety, depression, loss of independence for this population," Bashore said. "It's important for people to understand just how prevalent these (scams) are, how sophisticated and advanced they're becoming, particularly with these imposter scams that are increasingly challenging even for savvy consumers to spot.
"They should not be ashamed at all to reach out to and engage trusted members of their family or community," he said. Those friends or loved ones can help advocate for you.
Romance scam: A widow opened herself up to new love. Instead, she was catfished for a million dollars.
The quicker a financial institution knows there is a problem, the better the chances are that some of the lost money might be recoverable, Bashore said. But liability for the fraud does vary for each case, he said, and often if the consumer has willingly transferred the money to a scammer, it could prove difficult to recover.
"Financial institutions will always make their best efforts to recover funds," he said. "If a consumer believes they fell victim to a scam, it's so important that they contact their financial institution right away because time is precious, particularly with the speed of payments."
If you're in the middle of a scam and realize it, disengage from the contact, Kingsley said.
Kingsley likens the response to the fire education tip of "stop, drop and roll."
"Pause, think about it, don't panic. Whatever it is, you probably don't have to respond that second. Try to take a breath. And then what I recommend is, again, have that trusted contact."
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays,here.
This article originally appeared on USA TODAY: Scams targeting the elderly are on the rise: Tips to protect them
