According to the FBI, reports of elder fraud to the FBI’s Internet Crime Complaint Center rose by 14% in 2023. With scams targeting seniors on the rise, it’s important to remain vigilant and learn how to prevent future incidents.
In this blog, we’ll discuss a few reasons seniors might be targeted for scams as well as a few common scams and how to avoid them.
While financial scams can impact anyone, seniors can be a particularly vulnerable group. Here are a few factors that play into senior-targeting scams:
Since seniors may have lower digital literacy, online scams are commonly used against them. However, there are also other scams that target seniors. Here are a few common types of scams targeting older adults to be aware of:
Phishing: Phishing occurs when a scammer pretends to be someone that they aren’t. This is when a scam uses the name of a familiar company, personal friend, or even your bank. The scammer then asks for sensitive information or tells you to click on a link that downloads a virus onto your device. These links can be sent via email, text, or even fake websites.
Malware or Ransomware: Hidden viruses appear in pop-ups, ads, posts on social media, emails, or even from friends or family whose accounts have been hacked. The virus steals your information or requires ransom payment when downloaded.
Tech Support or Antivirus Scams: This scam occurs when a scammer informs you that there’s a virus on your device, usually via text or email. The scammer says that they can fix it by accessing your device. Instead, they hack your device, steal sensitive data, or download viruses.
Medicare Scams: These scams occur when someone claims to represent Medicare and asks for sensitive information. They may say they need your account numbers or personal information to enroll or renew your account.
Debt Collector or IRS Scams: A scammer may claim to be a debt collector or IRS representative to try to trick you into providing your personal information.
Relationship Scams: These scams occur when you receive a call, email, or message from someone impersonating a loved one, often a grandchild, niece, or nephew. They often pressure you to send money or pay fees to get the loved one out of trouble. Often, the “loved one” tells you not to tell the child’s parents because they’re afraid of getting in trouble and need your help secretly.
Often, financial scams targeting seniors tend to follow a certain pattern. Remaining vigilant is the best way to avoid a scam—if something seems too good to be true, it probably is. Here are a few red flags to look out for regarding any type of communication that you receive about your personal information, your accounts, or your money:
With scams, being proactive and avoiding them is always a better plan than reacting after-the-fact. Here are a few steps to take to avoid scams:
Review your accounts regularly
Check your banking and credit accounts on a regular basis to make sure that all charges are authorized. Consider switching to online or mobile banking to allow you to check your accounts daily. Signing up for a credit monitoring service can also help alert you to any suspicious activity quickly.
Set strong passwords
Setting secure passwords is crucial for protecting your personal information and online accounts. When creating passwords, here are a few steps to take:
Verify before acting
If you receive a suspicious call, email, or message, don’t immediately respond. Instead, contact the organization through their official channel or direct phone number to verify the legitimacy of the request. Remember that government agencies typically communicate through official letters or a secure website, not phone calls or emails.
Trust your instincts
If an offer seems too good to be true, it probably is. Take time to research before making financial decisions. The family emergency scam is a common tactic used to emotionally manipulate seniors into sending money, so it’s important to not let emotional manipulation or pressure tactics cloud your judgement.
Unfortunately, even with proper precautions in place, scams can still happen. If you’ve been scammed, the first step to take is to immediately contact your financial institution as well as the Federal Trade Commission. Here are a few other steps to take:
At Bank of the James, we’re committed to helping our customers gain financial literacy, and that includes learning about scams. We understand that scams are a serious issue and we’re devoted to helping our customers learn how to avoid scams to the best of their ability. We also provide resources and assistance to help our customers recover from already committed scams.
