Scams targeting seniors’ bank accounts and retirement savings are on the rise, putting at risk the financial security many Americans have spent a lifetime building. On this page, you’ll find the most common financial scams targeting seniors, along with practical steps to help you avoid becoming a victim and guidance on what to do if you suspect you’ve been targeted.
Investment Scams
These scams promise high guaranteed returns with little risk in fake cryptocurrency ventures or phony high-yield investments, along with other similar pitches.
In usual scammer scenarios, scammers will pretend to be investment managers and will tell their victims that they can make a lot of money in an investment like cryptocurrency, and they will handle all of the management for them. They will ask potential victim to wire the money to a phony online account and then send fake account statements to show rising investment returns. Over time, these criminals will drain an individual's savings.
What you can do: Report an investment scam to the FBI’s Internet Crime Complaint Center, the Federal Trade Commission or call the Financial Industry Regulatory Authority’s helpline to file a complaint at 844-574-3577. You can also report the incident to your state’s attorney general’s office.
Government Imposters
Scammers are also contacting seniors by phone, email, and text- and are even appearing in person pretending to be agents from the IRS, Medicare, the Social Security Administration, and other government agencies to discuss account issues. They might even use false caller IDs to make it seem like they are using an official government number or use AI to create fake voices, or send phishing text or emails with a link when clicked installs malware or steals personal data.
Some will tell you that you owe back taxes and must pay the IRS immediately, while others may claim there’s an issue with your Social Security account; sometimes even falsely alleging that you’re connected to a crime.
Overall, the goal is the same. To steal your money and your personal information. Government agencies will never initiate contact by phone, email, text, or social media to request personal or financial information or threaten arrest. These agencies will rely on the U.S. Postal Service (U.S.P.S) to send you important account information and it's only after you make said appointment that they will contact you. Also, please know that Medicare will never threaten to cancel your coverage and no real government agency will ever ask for money via cryptocurrency or prepaid gift cards.
What you can do: Contact all credit bureaus to freeze your credit and report the scam to the FTC and any relevant agencies. Check all Medicare, Medicaid, Social Security, and other account statements for unauthorized activity, including fake benefits, services, or charges. If it was a tax scam, file a paper Form 1040 and include Form 14039 (Identity Theft Affidavit), or submit electronically at IdentityTheft.gov.
Romance Scams
Loney seniors on social media are getting exploited, according to fraud experts. In romance scams, scammers create fake profiles on Facebook, Instagram, or other social media and dating websites to create ongoing relationships with seniors. Their goal is create a trusted bond and then make a pitch for money.
Romance scammers tend to live far away and aren't able to meet in person and/or aren't willing to do a video call. They often communicate with an app called "WhatsApp" or another similar messaging platform. They typically need money for emergencies of a crisis that suddenly pop up and ask for your help by gift cards or cryptocurrency.
What you can do: Tighten privacy settings on all social media platforms to limit who can send you messages and who can see your posts. Report the crime to the FBI's Internet Crime Complaint Center, the FTC, and your local police department. Alert your bank, credit card company, and wire transfer service to freeze your account and attempt to reverse any transactions made. Update any online banking and social media passwords.
Tech-Support Scams
These scammers try to scare you by telling you there is something wrong with your device (computer, phone, or tablet) with the goal of gaining remote access to your machine so they can steal your personal and financial information.
This scam starts with a pop-up warning on your screen that looks like it could be from a well-known company that urges you to call a phone number for help. Once you call, a scammer asks for you to give them remote access to your device then they use a logger program- which is a type of spyware that can record every keystroke made on a device- to steal passwords, credit card information, and bank or other financial account information. To protect yourself, verify that any phone number or website link you use are legitimate. Use strong and unique passwords, as well as multifactor authentication to add a second layer of security.
What you can do: Scan your device using a trusted antivirus software that removes malware immediately. Change your passwords and review all account statements for unauthorized activity. Report the scam to the FBI's Internet Crime Complaint Center and the FTC. Report the incident to your bank, brokerage, credit card company, and credit rating firms.
Source: Lori Ioannou, The Wall Street Journal
