The #1 Elder Financial Scam And How To Protect Your Loved Ones—According to Top Cyber Security Experts
Senior woman using mobile phone and credit card in a coffee shop
Elder financial scams are skyrocketing, with suspected fraud against seniors up nearly 50 percent in 2023, according to Thomson Reuters data (and 2022 was already a record year, up 50 percent from 2021). It's more important than ever to protect the older people in our lives from these innovative scammers.
To learn more about the prevalent scams targeting the elderly and how to safeguard our loved ones, we spoke with three cybersecurity and fraud experts. Here are the top senior financial scams and elder fraud tactics to be aware of, according to experts.
Related: Scammers Could Be Using AI-Cloned Voices of Your Family—Here’s How To Tell if You're Being Targeted and What To Do
The No. 1 Elder Financial Scam, According to Cyber Security Experts
Many scammers are capitalizing on seniors' lack of tech literacy, shares cybersecurity expert Josh Amishav, Founder and CEO of Breachsense, a company that monitors the dark web, private hacker forums, and criminal marketplaces to detect data breaches.
"From our perspective, the top scam targeting seniors is tech support scams—hackers claiming that the victim has a virus on the device and requesting money to fix it," Amishav explains.
In this scam, hackers call or send pop-up messages asserting the victim's device is infected. They then offer to "fix" the non-existent issue for a fee.
Dori Buckethal, Vice President of Risk & Fraud Solutions at Thomson Reuters, confirms criminals are aggressively employing this tactic. "Be wary of any phone call that says they are calling to “verify” your personal information, such as bank accounts, credit card numbers, Social Security number, street address, etc.”
By exploiting fears over viruses, scammers gain remote access to steal personal data and charge for useless services.
Related: Uh-Oh, Sounds Like There's Another Dropbox Email Scam Hitting Inboxes
5 More Common Elder Scams To Look Out For
Tech support scams may be considered the most common, but that's not where the elder fraud ends. Here are five additional elder scams that experts want you to be aware of.
A 'Grandparent Scam' That Plays on Emotions
Amishav flags another troubling trend: the "grandparent scam" where imposters pose as relatives in immediate distress.
"Scammers pretend to be a grandchild in distress who ask for money to be sent urgently," Amishav warns.
Dr. Brian Callahan, the Graduate Program Director for the Information Technology and Web Science Program and Director of the Rensselaer Cybersecurity Collaboratory at Rensselaer Polytechnic Institute, says scammers often call the victim pretending to be a grandchild, niece, or nephew and adds that “the scammer may pretend they are in a far-away country and do not have access to usual methods for getting money.”
This scam pulls on grandparents' heartstrings, exploiting their deepest concern for their family to trick them into immediate money transfers without verification.
Related: Watch Out for the ‘Rich Grandma Scam’ That Has Already Claimed at Least One Victim
Social Security Scams Run Amuck
There are also Social Security card scams, which Callahan warns are rampant right now. “The victim is called and told their Social Security number has been identified in a crime that was committed and that the police are on their way to arrest the victim right now unless some amount of money can be paid,” he says.
Callahan shares that scammers might claim anything from tax evasion to drug smuggling as the crime the elderly person is “accused” of.
Lonely Seniors Ensnared in Romance Scams
Per Amishav, romance scams are surging as well on dating sites.
"Romance scams [are when] perpetrators leverage dating sites to develop relationships with older adults, and eventually ask for money," he explains.
These fraudsters build emotional rapport before constructing elaborate stories to coerce funds. Isolated seniors long for companionship and connection, which scammers ruthlessly prey upon.
Bogus Bills for Healthcare Services
Amishav notes increased healthcare and Medicare cons. "Fraudsters pose as Medicare representatives, ask for personal information, provide bogus services then bill," he says.
Pretending to be Medicare reps or health providers, scammers use phone, email, text and mail to steal seniors' money and identity under the guise of "verifying" information or providing critical services. They leverage fears over healthcare access to perpetrate these insidious scams.
Dishonest Contractors Target Homeowners
According to Amishav, another prevalent scam involves home improvement ripoffs. "Scammers posing as local contractors offering home improvement services, but they either take money and run or do shoddy work," he explains.
There has been an increase in home improvement scams as well, where “contractors” offer seniors unnecessary and overpriced repairs or upgrades to their homes. These schemes work by pressuring seniors into immediate repairs before they have time to think.
Related: 18 Phrases To Use With Your Adult Kids That Will Transform Your Relationship, According to Psychologists
How To Protect Our Loved Ones
To avoid these predatory pitfalls, experts offer advice:
Educate About Possibilities
"Educate regularly about common scams—this is the first line of defense," Amishav emphasizes. Have frequent conversations to build awareness before victimization occurs.
Callahan agrees, adding, “Periodic conversations about how no real police will ever call you and tell you your Social Security number was used in a crime can truly be helpful.”
Related: What Is the New ‘Look Who Died’ Internet Scam? Here’s How It Puts Your Privacy at Risk
Check-in Regularly
Maintain regular check-ins by phone or in person to get ahead of any suspicious communications, Amishav recommends. Look for early warning signs.
Teach Tech Smarts
Raise the level of digital literacy for the seniors in your life. “These scams rely on the fact that many elderly people are not as technologically literate as younger generations,” shares Callahan. “You are much less likely to fall for a pop-up telling you that you must call a number to get a virus off your computer.”
Review Software and Handle Payments
Teach your loved ones about antivirus software. “Explain to them that antivirus software never asks you to call them,” says Callahan. “Many antivirus packages, such as the one built-in to Microsoft Windows, are already free so there is never any need to pay. If you do opt for a paid antivirus package, set up automatic billing if it is by subscription or handle the payment of it yourself instead of having your elderly loved one deal with it.”
Related: The Alarming Reason Why the FBI Is Warning Travelers Against Using Public Charging Stations
Assist With Password Security
Along those lines, encourage password managers and two-factor authentication, adds Amishav. This prevents criminals from accessing personal information online.
Related: These Are the 100 Most Common Passwords—See If Yours Made the List
Set Up Notifications on Their Activity
Monitor financial statements for questionable transactions, says Amishav. Watch for odd transfers to unfamiliar entities.
Block Calls
Limit robocalls by signing up for the Do Not Call registry, Amishav advises. Also, use call-blocking services to reduce risk.
The consensus is that education and vigilance are key to protecting seniors from these insidious and increasingly common scams. By regularly discussing scam awareness and tactics, we can empower seniors to identify and evade fraud when it emerges. Proactive defense is essential to prevent financial elder abuse, which is urgently escalating. With compassion and diligence, we can help safeguard the seniors we love.
Next: Here's Exactly How To Block 'Potential Scam' or 'Scam Likely' Calls
Sources
Josh Amishav, Founder and CEO of Breachsense
Dori Buckethal, Vice President of Risk & Fraud Solutions at Thomson Reuters
Dr. Brian Callahan, the Graduate Program Director for the Information Technology and Web Science Program and Director of the Rensselaer Cybersecurity Collaboratory at Rensselaer Polytechnic Institute
