Elder Frauds & Scams

How Criminals Defraud The Elderly Every Minute Of Every Day!

How Scams Work by SCARS

Elder Fraud Affects Millions Of People Every Year!

Each year, millions of elderly Americans fall victim to some type of financial fraud or confidence scheme, including romance, lottery, and sweepstakes scams, to name a few. Criminals will gain their targets’ trust and may communicate with them directly via computer, phone, and the mail; or indirectly through the TV and radio. Once successful, scammers are likely to keep a scheme going because of the prospect of significant financial gain.

Seniors are often targeted because they tend to be trusting and polite. They also usually have financial savings, own a home, and have good credit—all of which make them attractive to scammers.

Additionally, seniors may be less inclined to report fraud because they don’t know how, or they may be too ashamed at having been scammed. They might also be concerned that their relatives will lose confidence in their abilities to manage their own financial affairs. And when an elderly victim does report a crime, they may be unable to supply detailed information to investigators.

With the elderly population growing and seniors racking up more than $3 billion in losses annually, elder fraud is likely to be a growing problem.

Common Elder Fraud Schemes

• Romance scam/relationship scam: Criminals pose as interested romantic partners on social media or dating websites to capitalize on their elderly victims’ desire to find companions. Another variation of this are marriage scams.
• Tech support scam: Criminals pose as technical support representatives and offer to fix non-existent computer issues. The scammers gain remote access to victims’ devices and sensitive information.
• Grandparent scam: Criminals pose as a relative—usually a child or grandchild—claiming to be in immediate financial need.
• Government impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to provide funds or other payments.
• Sweepstakes/charity/lottery scam: Criminals claim to work for legitimate charitable organizations to gain victims’ trust. Or they claim their targets have won a foreign lottery or sweepstake, which they can collect for a “fee.”
• Home repair scam: Criminals appear in person and charge homeowners in advance for home improvement services that they never provide.
• TV/radio scam: Criminals target potential victims using illegitimate advertisements about legitimate services, such as reverse mortgages or credit repair.
• Family/caregiver scam: Relatives or acquaintances of the elderly victims take advantage of them or otherwise get their money.

Protect Yourself

• Recognize scam attempts and end all communication with the perpetrator.
• Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
• Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
• Be cautious of unsolicited phone calls, mailings, and door-to-door service offers.
• Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
• Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
• Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
• Be careful what you download. Never open an email attachment from someone you don’t know, and be wary of email attachments forwarded to you.
• Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.

How to Report These Frauds

If you believe you or someone you know may have been a victim of elder fraud, contact your local FBI field office or submit a tip online. You can also file a complaint with the FBI’s Internet Crime Complaint Center. You should also report them to the FTC and SCARS.

When reporting a scam—regardless of dollar amount—include as many of the following details as possible:

• Names of the scammer and/or company
• Dates of contact
• Methods of communication
• Phone numbers, email addresses, mailing addresses, and websites used by the perpetrator
• Methods of payment
• Where you sent funds, including wire transfers and prepaid cards (provide financial institution names, account names, and account numbers)
• Descriptions of your interactions with the scammer and the instructions you were given

The story, lies, and other dialog is less important to include in your report. Please read the SCARS Checklist for Interacting with the Police – click here.

We also have a very useful SCARS webinar to help you better understand how to tell your story to the police – click here

You are also encouraged to keep original documentation, emails, faxes, and logs of all communications.

Where to Report – we recommend all four:

1. First to your local police – get a police report number!
2. FBI at www.IC3.gov
3. FTC at https://reportfraud.ftc.gov/#/?orgcode=SCARS
4. SCARS at www.Anyscam.com