Elder fraud has become a significant threat in today’s digital age as criminals increasingly target seniors with various scams. Elder fraud complaints to the FBI's Internet Crime Center increased by 14% in 2023, and losses increased by 11%.1 Understanding how elder fraud works, the signs to watch for and effective ways to stay protected is crucial for safeguarding finances and personal information. Whether you're a senior or a loved one looking out for aging family members, this article provides advice to help stay one step ahead of fraudsters.
What is Elder Fraud?
Elder fraud refers to financial scams and exploitation specifically targeting older adults. Scammers use phone calls, emails, fake websites and social engineering tactics to trick seniors into revealing personal information or transferring money. The consequences can be financially and emotionally devastating, making awareness and prevention essential.
Common Types of Elder Fraud
- Impersonation Scams: Fraudsters pose as government officials, bank representatives or even family members, requesting urgent payments or sensitive information.
- Tech Support Scams: Seniors are contacted by “support agents” who claim their computer has a virus, convincing them to give remote access or pay for fake solutions.
- Romance Scams: Criminals build online relationships to gain trust, then ask for money under false pretenses.
- Lottery and Sweepstakes Scams: Victims are told they’ve won a prize but must pay fees or provide bank details to claim their winnings.
- Investment Scams: Fraudsters persuade seniors to invest in fake companies or risky ventures promising high returns.
Warning Signs of Elder Fraud
- Unusual or unexplained bank withdrawals or wire transfers
- Sudden changes to wills, power of attorney or account beneficiaries
- Suspicious emails or calls requesting money or account verification
- Pressure to act quickly or secretly about a transaction
- Promises of large cash prizes or returns with little risk
How to Stay Protected Against Elder Fraud
- Practice Vigilance with Calls and Emails: Never share sensitive information like Social Security numbers or bank details over the phone or email unless you are certain of the recipient’s identity. Legitimate institutions will not pressure you or ask for this information. If you are uncertain, hang up and call the organization back on their official phone number.
- Use Strong, Unique Passwords: Protect your online banking and financial accounts with strong, unique passwords and enable two-factor authentication whenever possible.
- Monitor Financial Accounts Regularly: Check your account statements and transaction history frequently. Report unfamiliar activity to your bank right away.
- Stay Educated on Commons Scams: Keep up with information from trusted sources about new scam tactics targeting seniors. Most banks provide fraud alerts and educational resources designed specifically to help elders stay informed.
Communicate Regularly with Trusted Family Members: Discuss financial matters openly with family or a trusted friend. Fraudsters often urge secrecy – staying connected helps reduce vulnerability. - Be Cautious with Unsolicited Offers: If an offer sounds too good to be true, it probably is. Do not respond to requests for money, investments or personal information unless you are confident in their legitimacy.
- Secure Personal Documents: Keep sensitive records in a safe place and shred outdated or unnecessary documents containing personal data. If you still receive paper statements, consider going paperless and receive them electronically.
What to Do if You Suspect Elder Fraud
- Contact your bank immediately to freeze accounts or reverse unauthorized transactions.
- Report the incident to your local police, the Federal Trade Commission (FTC) or Adult Protective Services.
- Let family and friends know so they can provide support and watch for additional scam attempts.
Elder fraud is unfortunately on the rise, but staying informed and alert can make a world of difference. By following these preventative steps and leveraging your bank’s security tools, you can defend yourself and your loved ones against financial scams aimed at seniors. Remember, when in doubt, please reach out to our Customer Care Team at 800.990.4828 for assistance. Early action is the best defense.
1FBI, Elder Fraud in Focus