Previously we talked about why seniors can be especially vulnerable to certain types of consumer fraud. FBI statistics show that in 2021 alone, older Americans suffered $1.7 billion in losses to scammers. We also explored some general ways we can protect ourselves. Here we are going to look at some of the specific types of scams by which older Americans are all-too-frequently victimized. Our best defense against these common and nefarious schemes is knowing in advance what to look out for. Please read on and learn.

Grandparent Scams

Of all the fraudulent schemes out there, these strike me as the most heinous. They exploit the love and concern which seniors feel for their family in order to steal their financial resources. What could be more loathsome and just downright evil?

The perpetrators of grandparent scams will call or email seniors and pretend to be grandchild or other relative.They may say they are in jail, in the hospital, or stranded in a foreign country and urgently need money. Almost always, the scammers will instruct or beg the senior not to let anyone else know about the situation in order to avoid more problems, prevent embarrassment or keep others out of danger. Family details are easily obtained nowadays from social media. Scammers use this information to make the story more believable. The seniors are then prodded to send money, typically via wire transfer or prepaid debit card.

As artificial intelligence (AI) tools grow ever more sophisticated, crooks are now even able to replicate the sound of an individual’s voice. It only takes a short sample — for example, a brief TikTok post — to mimic a grandchild’s voice. The scammers are then able to use AI technology to hold a conversation in that voice. Despicable.

Sweepstakes and Lottery Scams

Ed McMahon left us in 2009. His familiar and iconic face lent credibility to the American Family Publishers sweepstakes. In his absence, it can be really difficult to know what lotteries or contests are legitimate and which ones are only out to steal from us.

Who wouldn’t want to win a brand new car?  Or millions of dollars?  Or a luxury vacation?  No one, of course, and scammers understand this.

Initially, seniors are contacted by phone call, email, social media notification or direct mail and congratulated for winning some big contest. But there’s always a catch:  To collect the winnings, relevant taxes and fees must be paid first.  Unwary seniors may be convinced to send money, cash or gift cards — sometimes totalling many thousands of dollars — to facilitate receiving their supposed winnings. Sometimes fake checks or money orders are even sent to make these scams seem more legitimate. Please don’t be fooled.

Medicare Scams

These target folks who are eligible for or enrolled in Medicare (the federal health insurance program for Americans aged 65 and older, but you probably knew that.) They often involve deceptive communication about benefit changes — which is to say, they frequently just make stuff up.  

In this scheme, scammers often pretend to be from Medicare, a local aging office or a health provider’s clinic. They may offer free or discounted services, equipment, or tests that are not covered by Medicare. They may try to enroll people in fake or misrepresented plans. Or they may just be trying to obtain personal information like your Medicare number, Social Security number, bank account number, or credit card number. The scammers may use this information to commit identity theft, bill Medicare for fraudulent claims, or charge people for services or products they never receive.

Investment Fraud

Investment scams offer seniors the opportunity to invest in a product, service, or business that promises high returns, low risks, or guaranteed profits.

Romance Scams

Dating or romance scams can happen to anyone. According to the Federal Trade Commision, however, they are most dangerous and devastating to Americans in the 55 to 64 age group.

They start with a perpetrator creating a fake online persona and using this to establish trusting, emotional connections with older individuals. Dating websites or social media are the usual platforms. Then the loneliness and vulnerability which many of us experience is exploited to steal our money or property. 

Expressions of respect and affection are used to gain our trust.  Frequent communications may seem to fill a void in our lives. Over time, scammers will make up stories of financial hardship or sudden emergencies to manipulate seniors into sending money. And these scams typically escalate, where ever more elaborate scenarios are created to elicit larger and larger amounts of money.

Above all, if you fall victim to a romance scam, DO NOT be embarrassed. It happens.  These scammers are professional criminals who have devoted a lot of time and energy to perfecting their deceptive craft. And like I said above, it can happen to anyone. Although I never got as far as sending money, I have been fooled by these types of scams myself more than once. If you have been victimized, cease communications immediately and contact law enforcement. 

So there you have it:  Five of the most common scams we may encounter as older Americans. Raising awareness and promoting vigilance are the most important things we can do to protect ourselves.  I hope that sharing this information is a step in that direction.

By Steven Roberts