Understanding the Threat of Financial Scams

Seniors are often targeted by scammers because they typically have accumulated savings, own their homes, and have good credit. According to the FBI, seniors lose more than $3 billion annually to financial scams. Understanding how these scams work is your first line of defense against becoming a victim.

Common Scams Targeting Seniors

Government Impersonation Scams

Scammers pretend to be from the IRS, Social Security Administration, or Medicare. They may claim you owe money, your benefits are at risk, or you're eligible for a special payment. Remember: Government agencies will never call demanding immediate payment, threaten arrest, or ask for gift cards or wire transfers.

Tech Support Scams

You receive a pop-up message or phone call claiming your computer has a virus. The scammer offers to fix it remotely but instead installs malware or steals your information. Legitimate tech companies don't make unsolicited calls about computer problems.

Grandparent Scams

A caller pretends to be your grandchild in trouble—arrested, in an accident, or stranded—and begs for money. They ask you to keep it secret. Always verify by calling your grandchild directly at their known phone number or contacting other family members.

Romance Scams

Scammers create fake online profiles and build romantic relationships over weeks or months. Eventually, they ask for money for emergencies, travel, or medical expenses. Never send money to someone you haven't met in person, no matter how convincing their story.

Medicare and Health Insurance Scams

Fraudsters pose as Medicare representatives to steal your Medicare number or personal information. They may offer free services or equipment in exchange for your Medicare number. Medicare will never call unsolicited asking for your Medicare number.

Investment and Lottery Scams

You're told you've won a lottery or sweepstakes but must pay fees or taxes upfront. Or you're offered a "guaranteed" investment with high returns and no risk. Legitimate lotteries don't require upfront payments, and all investments carry some risk.

Warning Signs of a Scam

• Urgency: Scammers create pressure to act immediately before you can think or consult others
• Secrecy: They ask you not to tell family members or bank employees
• Unusual payment methods: Requests for gift cards, wire transfers, cryptocurrency, or cash
• Too good to be true: Offers of free money, prizes, or guaranteed returns
• Threats: Claims you'll be arrested, lose benefits, or face other consequences
• Requests for personal information: Social Security numbers, Medicare numbers, or bank account details

How to Protect Yourself

Be Skeptical of Unsolicited Contact

Whether by phone, email, text, or in person, be cautious of any unexpected contact asking for money or personal information. It's okay to hang up, delete the message, or close the door.

Verify Before You Act

If someone claims to be from a company or government agency, hang up and call the organization directly using a number you find independently (not one the caller provides).

Protect Your Personal Information

Never share your Social Security number, Medicare number, bank account numbers, or passwords with unsolicited callers. Shred documents containing personal information before disposing of them.

Use Strong Passwords and Security

Create unique, strong passwords for online accounts. Enable two-factor authentication when available. Keep your computer's security software updated.

Talk to Someone You Trust

Before making any financial decision based on an unsolicited contact, discuss it with a family member, friend, or financial advisor. Scammers count on isolating their victims.

What to Do If You've Been Scammed

If you suspect you've been a victim of a scam:

• Stop all contact with the scammer immediately
• Contact your bank or credit card company right away
• Report the scam to the FTC at ReportFraud.ftc.gov
• File a report with your local police
• Report Medicare fraud to 1-800-HHS-TIPS
• Contact the FBI's Internet Crime Complaint Center (IC3) for online scams

Resources for Seniors

The National Elder Fraud Hotline (1-833-FRAUD-11) provides personalized support to seniors who may be victims of financial fraud. Trained counselors can help you navigate the reporting process and connect you with local resources.