3 Types of Scams that Target Senior Citizens

By: Stacey Nickens

Scams harm people of all ages, but fraudsters especially target retirees or those close to retirement. The elderly are targeted by scammers for a number of reasons. First and foremost, older individuals tend to have more money. People who are 50 or older possess 83% of America’s wealth, and households run by people in their 70s have the largest median net worth. Scammers also exploit generations that were raised to be polite and who think it may be rude to hang up on someone. Finally, those close to or in retirement may struggle with loneliness and may accordingly be more vulnerable to manipulative scams. With that in mind, let’s review three of the most common types of scams that target senior citizens as well as how you can protect yourself from becoming the victim of these scams.

Imposter Scams involve a fraudster pretending to be someone they’re not. The scammer may pretend to be a loved one asking for personal information, such as your bank account login or Social Security number. The scammer may also pretend to be an IRS or Social Security official. They may even threaten you with legal action or arrest if you do not follow their directions. Imposter scammers will sometimes offer to help you reactivate a suspended Social Security number. You should hang up the phone if someone calls pretending to be an IRS or Social Security official. The IRS will never discuss your personal information over the phone, and the Social Security Administration will only call you in regards to an ongoing matter.

Medicare Scams are a form of imposter scams, in which the fraudster pretends to be a Medicare representative. The scammer may ask for personal information in order to supposedly help you get a new Medicare card or activate your benefits. Imposter scammers can also make it appear as if they are calling from an official office, so you shouldn’t necessarily trust your Caller ID. Instead, hang up and call Medicare yourself. You can call Medicare by using the following number: 1-800-MEDICARE. You can also use this number to report suspicious calls.

Lottery or Sweepstakes Scams target individuals by telling them they’ve won a large payout. These scammers may reach out to you via phone, email, or mail. Some lottery scams say you can only unlock your reward by paying certain fees. Other scams may even send you a check while also charging you fees and “taxes”. However, these checks are fake and will bounce after a few days.

If you think you may have been a victim of a scam, contact your state’s attorney general. You can also file a report with the Better Business Bureau. Finally, keep an eye on your credit report and freeze or cancel your credit card if you see suspicious activity. As always, the Elm3 team is here to assist you in any way. We can offer advice and guide you through these challenging financial situations.