Great question! While many scams today are universal, there are certain types of fraud that specifically target older adults or affects them disproportionately. And unfortunately, these senior targeted scams are on the rise.
According to the Federal Bureau of Investigation (FBI), in 2021 there were 92,371 older victims of fraud resulting in $1.7 billion in losses. This was a 74 percent increase in losses compared to 2020.
Here are five of the most common senior scams that were reported last year, that both you and your mom should be aware of.
Government imposter scams: These are fraudulent telephone calls from people claiming to be from the Internal Revenue Service, Social Security Administration or Medicare. These scammers may falsely tell you that you have unpaid taxes and threaten arrest or deportation if you don't pay up immediately. Or they may say your Social Security or Medicare benefits are in danger of being cut off if you don't provide personal identifying information. They may even "spoof" your caller ID to make it look like the government is actually calling.
Sweepstakes and lottery scams: These scams may contact you by phone, mail or email. They tell you that you've won or have the potential to win a jackpot. But you need to pay a fee, or cover taxes and processing fees to receive your prize, perhaps by prepaid debit card, wire transfer, money order or cash. Scammers may even impersonate well-known sweepstakes organizations, like Publishers Clearing House, to fool you.
Robocalls and phone scam: Robocalls take advantage of sophisticated, automated phone technology to carry out a variety of scams on trusting older adults who answer the phone. Some robocalls may claim that a warranty is expiring on their car or electronic device, and payment is needed to renew it. These scammers may also "spoof" the number to make the call look authentic.
One common robocall is the "Can you hear me?" call. When the older person says "yes," the scammer records their voice and hangs up. The criminal then has a voice signature to authorize unwanted charges on items like stolen credit cards.
Computer tech support scams: Theses scams prey on senior's lack of knowledge about computers and cybersecurity. A pop-up message or blank screen usually appears on a computer or phone, telling you that your device is compromised and needs fixing. When you call the support number for help, the scammer may either request remote access to your computer and/or that you pay a fee to have it repaired.
Grandparent scam: The grandparent scam has been around for several years now. A scammer will call and say something along the lines of: "Hi Grandma, do you know who this is?" When the unsuspecting grandparent guesses the name of the grandchild the scammer most sounds like, the scammer has established a fake identity.
The fake grandchild will then ask for money to solve some unexpected financial problem (legal trouble, overdue rent, car repairs, etc.) to be paid via gift cards or money transfers, which don't always require identification to collect.
Some other popular scams targeting older adults right now are romance scams through social media and online dating sites, COVID-19 scams, investment scams, Medicare and health insurance scams, and Internet and email fraud.
For more information on the different types senior scams to watch out for, along with tips to help your mom protect herself, visit the National Council on Aging website at NCOA.org, and type in "the top 5 financial scams targeting older adults" in the search bar.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" book.