Written By: Dementia Consultant Theresa Klein, OTR/L.
Each year thousands of Americans are impacted by fraud and scams that threaten them, their personal information and finances. Seniors, 60+ and older, are often the main target of these scams with over 101,000+ complaints filed in 2023 and over $3.4 billion dollars lost to scammers. Both healthy seniors and those with cognitive impairment can fall victim to this fraudulent activity. Join us over the next 3 months for a 3-Part Series on Elder Fraud & Common Scams.
Part 1: Common Elder Scams
Why are seniors vulnerable? First, they are perceived as having money. Second, the scammers often use fast paced, high pressured, fear-based tactics that can catch people off guard. Third, they tend to have less digital literacy (i.e. knowledge and use of the internet, digital devices, social media, etc.).
Common Elder Scams include:
1. Government/Business Impersonation:
- What appears to be a reputable source, contacts an individual (i.e., IRS, Medicare, Social Security, police, bank, credit card company, etc.) with two goals: 1. Obtain personal information that can be used to steal identity and 2. To get money. They ask an individual to give or verify their personal information to “update their data base” or “send out a new card.”
- These communications use fear tactics claiming an individual owes money and if they don’t pay it now, they may lose coverage, be arrested or sued.
2. Robocalls/sales calls/phone scams:
- Individuals call and ask, “Can you hear me?” when an individual says “yes” they record the individual saying “yes”, later using the recording to authorize fraudulent activity.
- Individuals call to sell extended warranties, magazines, investments, and sweepstakes or lotteries. All use high pressure sales techniques and require an individual to pay up front before they can receive the promised product, which they never receive.
3. Computer Technical Support:
A message appears on an individual’s computer that says their computer has a virus. They are instructed to call a number or visit a website from which bad actors work to gain access to one’s computer to gather personal information or infect the computer with malware in order to lock the computer and hold the contents for ransom.
4. Internet related: fake websites, apps, social media accounts:
- Fraudulent websites are set up selling items that are “too good to be true.” Individuals think they are purchasing items, enter their personal information including a credit card and their personal information but no purchase is made, and no items are ever received.
- Fake social media accounts are used to develop relationships with vulnerable individuals who will eventually ask for personal information and/or money.
- Social media accounts like Facebook encourage people to play games and answer questions publicly. Most of the questions asked are often security questions used for passwords and account verifications.
5. Grandparent Scam:
An individual calls an elder and claims to be their grandchild or an authority such as the police, doctor, etc. who claims the individual’s grandchild is in danger and they need help now in the way of money. They are asked to send payment in the form of gift cards or a money transfer.
For more information on common types of scams which target Seniors go to the AARP website to view these videos: https://states.aarp.org/virginia/aarp-fraud-videos: https://www.youtube.com/watch?v=Y2OwiTUkOI8
Join us next month for Part 2 of Elder Fraud: Common Elder Scams “How To Prevent Falling Victim to Elder Scams.”