You work hard most of your adult life and play by the rules to have your pick of retirement living options and be comfortable in this stage of life. As you know, it’s important to have savings for retirement, but unfortunately, scammers also recognize this fact and target older individuals with financial scams.
According to the Federal Bureau of Investigation, seniors are more likely to have a nest egg saved up, to have good credit, and to own their homes, which makes them attractive targets for scams. People raised between the 1930s and 1950s were taught the values of being polite and trusting people, traits that may be easily exploited. Additionally, adults in this population may be less likely to report fraud because they’re unsure of who to report it to. Cognitive impairment or memory issues could make it more complicated to accurately state the crime.
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The good news is that awareness of the various scams will help protect you from becoming a victim. You can also share this information with friends so they can keep their finances safe.
Let’s take a look at some of the most common finance scams aimed at seniors so you can better understand how to avoid becoming a target:
Cemetery and Funeral Scams
There are two common types of scams that fall into this category. At first, scammers read obituaries and then attend the funeral service to take advantage of the widow or widower in his or her grieving state. The scammer might claim that the deceased had an outstanding debt to extort money. The second includes dishonest funeral home employees capitalizing on a family’s unfamiliarity with the cost of services and adding unnecessary costs to the total.
Health Insurance/Medicare Scams
All adults in the U.S. are eligible for Medicare once they reach age 65, so a scammer might call a senior posing as a Medicare representative and ask for updates on the older adult’s personal information. The scammer might also provide false services at a fake mobile clinic, according to the NCOA, and use the senior’s information to bill Medicare and take the money. A real health insurance provider or Medicare rep would never call or come to your door asking for this information, so receiving a call or a visit such as this is most likely a scam.
Grandparent Scam
The National Council on Aging listed the grandparent scam as one of the top 10 most common because it’s simple and pulls on the heartstrings of seniors. Scammers will call a senior, and when he or she answers the phone, the scammer will say something to the effect of, “Hi Grandma, it’s been too long since we’ve spoken,” or “Hey Grandpa! Do you know who this is?” When the senior answers with a name, the scammer says yes and then often asks for money for a sudden financial problem to be paid through a money transfer that doesn’t require identification. The scammer will also most likely ask the senior not to tell their parents.
Prescription Drug Scams
It’s not unusual for seniors to take multiple medications; some can be costly. In these scams, older adults might be sent an email about significant discounts on prescription drugs; however, once they input their credit card information, their money is stolen.
How to Protect Yourself
Knowing that scams like these exist is the first step to protecting against them. But it’s also imperative to understand how not to become a victim. These tips can help:
- Ask questions and get information before giving out any personal information.
- Be suspicious if something doesn’t feel right. Being skeptical of a situation that feels odd is OK.
- Don’t make impulsive decisions if a telemarketer calls. Always take time to research instead of making a rash choice.
- Never give out personal information online, such as your Social Security, bank routing, or credit card numbers.
- Learn about online safety, including email spam settings and using only reputable websites.
