Scammers are becoming increasingly bold, and their impact on seniors is more devastating than ever. In 2023, seniors lost an estimated $538 million to scams, up from $400 million in 2022, according to a Federal Trade Commission (FTC) report. From fake cryptocurrency schemes to tech support impersonation, these scams are not only draining savings but also jeopardizing the financial security and well-being of older adults.
Here’s a closer look at the alarming trend and practical steps seniors—and their families—can take to stay safe.
The Financial Toll on Seniors
The FTC report highlights a troubling rise in financial losses among older adults. Investment scams, particularly those involving fake cryptocurrency opportunities, accounted for much of the $538 million in losses. Seniors were often lured by online ads and social media posts that promised high returns but delivered nothing.
Tech support scams also targeted seniors, with fraudsters posing as representatives from companies like Microsoft, claiming to fix nonexistent computer issues. Romance scams were another major culprit, preying on vulnerable seniors who were tricked into investing in dubious ventures—often under the influence of an online romantic interest.
The impact is especially severe for seniors aged 80 and over, who collectively lost $48 million in 2023. For many, these losses affect their ability to pay for essentials like healthcare, housing, and other daily expenses.
Common Types of Scams Targeting Seniors
- Cryptocurrency Scams: Fraudsters promise high returns on crypto investments, often using fake platforms or apps to steal money.
- Impersonation Scams: Scammers pose as tech support agents, government officials, or even family members to steal money or personal information.
- Romance Scams: Seniors are convinced by online romantic interests to send money or invest in fraudulent schemes.
- Phishing Emails: Fraudulent emails encourage victims to click on malicious links or share sensitive information.
- Lottery and Sweepstakes Scams: Scammers claim the victim has won a prize but must pay fees or taxes to claim it.
How to Protect Yourself from Scams
While scams are becoming more sophisticated, you can take proactive steps to safeguard yourself or a loved one. Awareness and vigilance are key.
1. Be Wary of Urgent Requests
Scammers often create a sense of urgency to pressure you into acting quickly. They might say your bank account will be frozen, or you’ll miss out on a once-in-a-lifetime opportunity. Always pause and think before responding. A legitimate organization will give you time to verify their claims.
2. Never Pay with Gift Cards, Cryptocurrency, or Wire Transfers
Scammers often demand payment through untraceable methods like gift cards or cryptocurrency. Legitimate businesses will accept secure payment methods like credit cards, which offer fraud protection and chargeback options.
3. Protect Personal Information
Keep your Social Security number, account passwords, and other personal details private. Only share this information if you are absolutely certain you’re speaking with a legitimate organization. If in doubt, reach out directly to the company using a verified phone number or website.
4. Talk to Someone You Trust
Scammers often isolate their victims by insisting on secrecy. If someone says, “Don’t tell anyone,” it’s a major red flag. Always consult a trusted friend or family member before taking any action, especially if the request involves money or sensitive information.
5. Avoid Clicking on Suspicious Links
Many scams start with an email or text containing a malicious link. If you’re unsure about the sender or the link, don’t click it. These links can install malware on your device, giving scammers access to your personal and financial information.
6. Strengthen Account Security
Enable two-factor authentication on your online accounts. This adds an extra layer of security by requiring a code sent to your phone or email, in addition to your password. Setting up PINs or security questions can also help protect against unauthorized access.
Helping Seniors Stay Safe
If you have an older adult in your life, take proactive steps to help them navigate technology and protect their finances:
- Educate Them on Scams: Share common red flags and real-world examples of fraud. The more they know, the better equipped they’ll be to spot a scam.
- Set Up Fraud Alerts: Encourage them to set up fraud alerts on their credit report through one of the three major credit bureaus: Equifax, Experian, or TransUnion.
- Review Bank Statements Together: Periodically review financial statements for unusual transactions. Catching unauthorized charges early can limit the damage.
- Install Security Software: Ensure their computers and smartphones are equipped with reliable antivirus and anti-malware software.
What to Do If You’ve Been Scammed
If you or a loved one has fallen victim to a scam, act quickly to minimize the damage:
- Contact Your Bank or Credit Card Company: Report the fraud and request a freeze on your account if necessary.
- File a Report with the FTC: Visit ReportFraud.ftc.gov to submit details about the scam.
- Place a Fraud Alert on Your Credit Report: Notify one of the credit bureaus to flag your accounts for suspicious activity.
- Monitor Your Financial Accounts: Keep a close eye on all accounts for unauthorized transactions.
- Reach Out for Support: Many organizations, including AARP’s Fraud Watch Network, offer resources and guidance for seniors dealing with scams.
Final Thoughts
The $538 million lost to scams last year highlights the urgent need for awareness and prevention. While scammers are becoming more sophisticated, staying informed and vigilant can make a world of difference.
For seniors, the key to staying safe lies in slowing down, verifying information, and seeking advice from trusted sources. For their families, it’s about creating an environment of support and open communication. Together, we can help protect seniors from falling victim to these devastating schemes and ensure they can enjoy their golden years with peace of mind.
