Of all groups in the US, seniors are at the greatest risk of being the victim of scams. The FBI releases a yearly Elder Fraud Report tracking the most common types of scams affecting seniors, how much was lost, and current trends. Since the FBI collects thousands of online complaints daily, their reports are some of the most comprehensive and illustrative of what elder scams are currently floating about. They have not yet released a report for 2024, as the year isn’t over. But, by looking at their most recent release regarding 2023 stats, we can learn what is on an upswing and what is the most significant concern going forward.
Tech Support Scams: Tech support scammers pose as legitimate representatives from reputable companies like Microsoft or Apple. They contact victims through unsolicited calls or pop-up messages, claiming their device is infected with viruses or malware. Victims are then persuaded to grant remote access to their devices or pay for unnecessary software or services.
In 2023, seniors lost $589 million to tech support scams, making them one of the most financially damaging scams for this demographic. Older adults are particularly vulnerable due to their lower familiarity with technology and a higher likelihood of falling for such scams. However, the truth is that these scams are sometimes sophisticated enough that young people are also at risk.
Investment Scams: When it comes to immediate financial risk, investment scams are at the top. Fraudsters offer seemingly lucrative opportunities in Ponzi schemes, fake bonds, and non-existent certificates of deposit. Scammers put on the pressure and use scare tactics or threats of missing out to convince victims to invest in these too-good-to-be-true opportunities, ultimately stealing their money without any actual underlying investment or product.
Investment scams were the costliest type of senior fraud in 2023, resulting in over $1.2 billion in losses, with a significant portion involving cryptocurrencies. Older adults are targeted due to their higher-than-average financial assets and perceived vulnerability.
Romance Scams: Romance scams are prevalent on dating websites and social media. Scammers have scores of fake profiles and use them to build romantic relationships with victims. Once trust is established, scammers fabricate stories about needing money for emergencies, travel, or medical expenses and persuade victims to send funds.
Seniors are often targeted due to loneliness and financial stability. The FBI has noted a significant rise in these scams, with many victims pressured into fraudulent investments or direct financial support. In 2023, seniors lost nearly $357 million to romance scams.
Lottery and Sweepstakes Scams: Lottery and sweepstakes scams involve fraudsters notifying victims that they have won a prize or lottery they never entered. Scammers then request upfront fees for taxes or processing and ask for personal financial information to transfer the prize money.
These scams exploit the hope of winning big, and seniors who routinely play lotto and games of chance are at more risk. The FBI reports that senior victims lost $67 million in 2023.
Charity Scams: Charity scams involve fraudsters posing as representatives of charitable organizations to solicit donations, especially after natural disasters or crises. Scammers use phone calls, emails, or in-person visits to convince victims to donate to fake causes, only to later steal their money and personal information. Charity scams tend to spike after significant events like natural disasters, exploiting the goodwill of seniors.
Robocall and Phishing Scams: Robocall and phishing scams involve automated calls or emails to reach out to victims while claiming to be from trusted organizations like the IRS, banks, or popular companies. These scams use threatening messages or urgent requests to extract sensitive data or financial details from victims.
These scams can also take the form of tech support or investment scams. The prevalence of robocalls and phishing emails has increased, with seniors being prime targets due to their perceived lack of familiarity with technology.
Now that we understand the rise of scams and what seniors need to look out for, our next blog will focus on how seniors can limit risks and stay safe in the modern age.
Assisted Living in the Villages
A Banyan Residence is an assisted living and memory care facility supporting our residents’ efforts to live safe, fulfilling lives. Whether you need assistance in your daily life with chores or dedicated staff support for health issues, assisted living is a structured partner you should consider.
