Scams against the elderly cost seniors over $3 billion annually, tips to keep seniors safe

Over $3 billion. That’s how much senior citizens lose annually to financial scams, according to an estimate by the Federal Bureau of Investigations. (FBI) Fraudsters often go after older adults, thinking their targets have large sums of money saved up. However, it’s not just wealthy seniors who are targeted.

The Federal Trade Commission (FTC) Consumer Sentinel Network Data Book for 2021 states that 18% of people ages 70 to 79 years old have lost an average of $800 to a scam. People who are over 80 report even higher median losses of $1,500.

The most prevalent scams targeting seniors fall into the “impersonator” scam category, where the scammer pretends to be someone to gain your trust or scare you into complying.

The Grandparent and other Phone Scams
The grandparent scam is when a scammer reaches out to someone, pretending to be his or her grandchild. The scammer typically makes up a distressful situation—such as being stuck in jail or behind on an important bill—and asks for financial assistance.

They often ask the person to send money immediately using a wire transfer or to buy gift cards and read off the card’s information. The scammer might ask the victim to keep the call a secret, but the FTC says the safest option is to verify the situation by calling a family member who knows where the grandchild currently is. Another safeguard a targeted victim might employ is asking the caller a few questions that only the actual grandchild would know how to answer.

Other scams can start with a phone call, whereby a fraudster calls and claims to be an agency, such as the IRS or the Social Security Administration. (SSA) Scammers may say that some type of immediate action on the part of the intended victim is required, such as owed taxes must be paid to avoid arrest, and that it must be taken care of right then. However, the IRS and the SSA will never initiate contact by phone (they communicate by mail) and won’t ask for unusual payment methods, such as gift cards or funds sent by companies such as Western Union.

Medicare Scams
Scams involving Medicare beneficiaries occur when someone claiming to be a Medicare representative calls, asking for personal and medical information. The scammer might say that a new Medicare card is needed or offer discounted additional coverage. Provided information is often then used, either by the scammer himself or by selling personal and medical information for identity theft and medical identity theft.
Other Medicare scams advertise free or low-cost services or equipment to seniors. Typically, the scammers deliver shoddy services or equipment and then bill Medicare for the full amount.

Online Romance Scams
Romance scams occur when someone builds a romantic or platonic relationship with you and then begins asking you for money. Scammers often create complete social media profiles along with sophisticated backstories to support their fake identities, such as being an oil-rig worker in a foreign country. Some scammers will approach a targeted person on social media or through online games.

The FTC says that people lost $1.3 billion to romance scams in 2021 alone, more than in any other FTC fraud category. People of all ages become victims of romance scams, but median losses for victims who are over 70 were $9,000, compared with $750 for those aged 18 to 29.

Romance scams are often a long con, with a scammer taking weeks or months getting to know the mark before asking for anything. Once they do, the scammers may ask their victims to invest in a business proposition or send them money.

Online Shopping Scams
Scammers set up websites that appear to be legitimate storefronts but exist to collect your payment information or sell stolen goods. These sites can be almost identical to legitimate business sites and are often hard to discern. The sites often appear on social media or in a website’s comments section. One way to avoid being scammed online is to go to the main website of an online store and ensure that the site has a security status in the browser’s address bar. For most browsers, a “safe” website will display a green padlock icon to the left of the website’s URL. Clicking on the padlock icon will verify the details of the website.

In its annual report to Congress on protecting older adults for 2021, the FTC highlighted online shopping scams as the most frequent type of fraud targeting seniors. The FTC suggests looking for red flags on websites, such as unusually low prices and spelling errors.

Sweepstakes and Lottery Scams
These scams can target victims through an email, a call, a text or a letter or letter saying that the person has won a prize or can enter a sweepstakes contest. Scammers typically will say that payment must be made upfront, often to cover a processing fee. Any money paid is typically lost, and the scammer may also use any personal information gleaned to steal identity.

Steps to Avoid Senior Scams
While scammers can use various methods and tactics when targeting their victims, there are some basic practices to help keep seniors—and people of all ages–safe.

• Be wary of anything that seems too good to be true, such as a high-paying job that can be worked from home, free medical care, or a prize from a sweepstake that wasn’t entered. Taking a step back and reevaluating the situation can prevent a lot of trouble down the road. Family and friends can also be a source of help.

• With modern technology, scammers can make phone calls and emails that appear to come from legitimate companies and government organizations. FTC officials say it is best to avoid sharing private information before contacting the organization directly.

• Online accounts can be set up for multifactor authentication, which requires that a code be sent to one’s phone or email. The code must be entered before accessing an account. Enabling this extra security can prevent scammers from accessing accounts, even with usernames and passwords.

• Avoid odd payment types. Scammers often ask for money via a wire transfer, money order, cryptocurrency, payment app, or gift card. Those odd payment requests can be a tipoff that one is dealing with a criminal.

• If tricked by a scammer, one can report the fraud to the FTC on ReportFraud.ftc.gov. and file a police report. The FTC also can help provide a personalized recovery plan from the FTC using IdentityTheft.gov.

Editor’s Note: This is the first in an occasional series on issues affecting senior citizens. Next: Scams reported in the Front Royal-Warren County area.