As technology advances, so do the tactics of fraudsters looking to exploit unsuspecting individuals. Elder scams are schemes specifically designed to deceive and steal from senior citizens. These scams can take many forms, including phone calls, emails, postal mail, or even in-person encounters. The goal of these scammers is often to gain access to financial information, such as credit cards, bank accounts, personal data, or to directly steal money from their victims.
Seniors are especially vulnerable to scammers that exploit their trust, financial stability, and limited familiarity with technology. According to the FBI’s Elder Fraud Report, losses from scams targeting Americans over 60 increased by 11% in the past year, totaling more than $3.4 billion in 2023.
With these crimes on the rise, Metro Credit Union is providing the following information as a guide to help family members and friends take an active role in protecting their loved ones from unscrupulous fraudsters who prey on them. Highlights include why seniors are targeted, common types of scams targeting them, and how they can protect themselves and others.
Why Are Seniors Often Targeted for Scams?
Trusting Nature
Seniors grew up in an era when trust was often a valued trait, making them more likely to trust strangers.
Isolation
Loneliness can make seniors more vulnerable as they may seek social interactions, even with unknown sources.
Memory Challenges
Aging can affect memory and recognition, making it harder to spot scams and remember details like bank balances.
Lack of Technical Savvy
Seniors may be less familiar with modern technology and online scam signs, making them easier targets.
Financial Security
Many seniors have substantial savings, own their homes, and have good credit, making them attractive to fraudsters.
Insecurities
Scammers exploit seniors' insecurities by using threats related to health care or Social Security to coerce them into giving up financial information.
Common Scams Against Seniors
Government Imposter Scams
Scammers may call seniors pretending to be from the IRS or Social Security Administration, claiming they owe unpaid taxes or need to provide personal information to keep their benefits.
Healthcare Scams
Fraudsters impersonate Medicare or health insurance representatives, asking seniors to provide personal information or pay fees to access medical services or receive new Medicare cards, which leads to the victims’ information being stolen and used for identity theft.
Online Shopping Fraud
Fraudsters create fake online stores or ads promoting discounted products. Seniors, looking for good deals, may unknowingly enter their payment information on these scam websites, only to receive nothing in return and fall victim to theft.
Funeral Scams
Scammers exploit grieving widows and widowers by targeting them through obituaries. They may attend funerals or contact surviving family members, falsely claiming the deceased had outstanding debts that must be paid. Similarly, someone pretending to be from the funeral home could call and insist that there are extra charges that haven’t been paid.
Grandparent Scams
A scammer may pose as a grandchild in trouble, asking urgently for money to cover legal troubles or medical emergencies. AI technology can mimic voices, making it even more convincing.
For example, a trusted financial institution shared a case where an elderly customer recently fell victim to a grandparent scam and withdrew $12,500 in cash. The scammer claimed to be his granddaughter, saying she was in legal trouble and under a gag order, with threats to her life if the money wasn’t paid. The customer said it sounded just like his granddaughter. A "courier" came to his home in Omaha to collect the cash. Thankfully, the bank staff explained how AI can mimic voices and advised the customer to file a police report.
Lottery Scams
Claims of winning a lottery but requiring payment of taxes or fees before releasing funds. After receiving the payment, the scammer disappears, and there is no prize.
Romance Scams
Someone they’ve never met in person expressing a deep emotional connection such as “love” or “soul mate”. In some cases, victims believe they’ve formed a relationship or friendship with a celebrity who eventually asks for money, leading to financial loss.
Telemarketing Scams
Unsolicited calls offering fake prizes, low-cost health care products, or financial schemes.
Charity Scams
Fake charities solicit donations, often after natural disasters or during holidays.
Tech Support Scams
Calls or pop-up messages claiming to be from tech support, requesting access to computers or personal information.
Check Fraud
Scammers forge or alter checks to withdraw money from seniors’ accounts.
Overpayment Scams
Sending fake checks for larger amounts, asking victims to deposit and return the excess funds before the check bounces.
Investment Scams
Promises of high returns, leading seniors to transfer money from their bank accounts into fake investments.
Wire Transfer Scams
Convincing seniors to wire money under the guise of helping a relative in distress or securing a prize.
Impersonation Scams
Scammers posing as bank representatives, calling seniors to "verify" account information or report suspicious activity. Metro will never call and ask a member to very account information.
Automatic Withdrawal Scams
Unauthorized automatic withdrawals from seniors’ bank accounts through fake subscriptions or services.
How to Protect Your Loved Ones from Financial Exploitation
Stay Informed
Help them keep up to date with common scams. Check our fraud protection page regularly for current scams updates, and insights on how to protect your personal information, your loved ones, and your money.
Verify Sources
Tell them to always verify the identity of anyone contacting them unexpectedly, whether by phone, email, or in person.
Be Skeptical
Encourage them to be suspicious of unsolicited offers, especially those that seem too good to be true.
Use Strong Passwords
Ensure that all their online accounts are protected with strong, unique passwords.
Monitor Finances
Help them regularly review bank statements and credit reports for any suspicious activity.
Set Up Alerts
Help them use Metro Credit Union’s online banking to set up alerts for suspicious activities on their accounts.
Most of all, it’s important to regularly discuss the dangers of scams and encourage the seniors in your life to ask their family and friends for help if they’re unsure about a situation. Remind them you’re just a phone call away.
If you suspect that you or a loved one has been scammed, it’s crucial to act quickly:
Contact Metro
Report any unauthorized transactions and request to freeze your accounts.
Report the Scam
If you believe you or someone you know has fallen victim to a scam, please reach out to the National Elder Fraud Hotline at 833-372-8311 or file a report with local law enforcement and the Federal Trade Commission (FTC).
Notify Credit Bureaus
Place a fraud alert on your credit reports to prevent further damage.
Elder Scam Red Flags (A Quick Checklist)
If any of these happen, treat it as a scam until proven otherwise:
- They demand you act immediately, keep it secret, or say you cannot tell your family.
- They threaten arrest, loss of benefits, or legal trouble unless you pay now.
- They ask for payment by gift cards, wire transfer, cryptocurrency, or cash pickup.
- They request online banking logins, one-time passcodes, or remote access to your computer or phone.
- They claim to be a family member in trouble and ask for money, especially with a “gag order” story.
- They want you to “verify” personal details like Social Security number, account numbers, or passwords.
What to Do If Someone Contacts You (Do This First)
- Stop and slow down. Do not send money, share codes, or click links.
- Hang up or close the message. Scammers rely on keeping you engaged.
- Verify using a trusted method. Call the organization back using a phone number from an official website, a statement, or the back of your card.
- Talk to a trusted person. Call a family member or friend before you take any action.
- Save evidence. Take screenshots, write down phone numbers, and keep emails or texts.
A Simple Family Plan to Prevent Elder Scams
- Pick a “family verification question” that only relatives know, and use it before sending money.
- Agree on a rule: no one sends money or account information without a second person confirming.
- Set up account alerts and review statements together on a schedule.
- Consider a dedicated point person in the family for financial questions and suspicious calls.
Questions to Ask Before You Believe It
- “What is this about, and can you mail it to me?”
- “What is your name and callback number?” (Then verify it independently.)
- “Can I call you back after I speak to my family?”
- “Why can’t I hang up and call the official number?”
