April 5, 2024
The month of April kicked off with a day dedicated to pranks and practical jokes. Whether it’s the classic whoopee cushion on Dad’s chair or a fake spider in Billy’s cereal, these harmless antics are all in good fun.
What’s not so harmless are the myriad scams that target older people. Each year, seniors are bilked out of nearly $30 billion in elder fraud, and scams targeting all age groups are getting more sophisticated every year.
Let’s explore some common elder scams and how to ensure you or a loved one is not fooled by them.
Why Do Scammers Prey on Older People?
Senior citizens are prime targets for scammers.
According to the FBI, older adults are more likely to have money in retirement savings and a home that’s paid for, less likely to report fraudulent activity, and more prone to memory loss, a condition unscrupulous people are quick to exploit.
Older adults are also generally more polite and less likely to question those with nefarious motives. Many are lonely and therefore willing to stay on a phone call or answer an email, allowing fraudsters the time and information they need to pull off a scam.
Scams involving senior systems – Social Security and Medicare – are some of the most prevalent.
Not So Secure
Scams that look like they’re coming from the Social Security Administration attempt to access one’s Social Security number. Armed with those nine digits, a scammer can engage in all manner of deception and theft. Often, they tell seniors their SSN will be suspended or benefits denied if they don’t make a payment. Some even go so far as to threaten arrest or legal action if money isn’t given.
How to Avoid a Social Security Scam
- First, know thatthe Social Security Administration rarely, if ever, makes/sends an unrequested phone call/email. What’s more, the SSA would never threaten you, suspend your SSN, ask for money for a benefit of some kind or ask you to send gift cards, wire transfers, prepaid debit cards, cash or any kind of currency.
- If you get a call or email supposedly from the SSA, hang up immediately and call the real SSA at 1-800-772-1213 to determine the veracity of the call.
- If you suspect a scam, report it immediately to the Office of the Inspector General.
Medicare Mayhem
The annual enrollment period of October 15-December 7 is when older adults can make changes to their Medicare health and drug plans. It’s also when scammers are pouncing on the urgency of this timeframe with bogus phone calls or emails that can be engineered to look like they’re coming from a legitimate government agency. (We emphasize this point because many of today’s scams employ phone numbers and web addresses that look like the real thing – BEWARE!) Medicare scammers try to gain your Medicare or Social Security number by using some or all of these tactics: promising free items or services; pressuring you to switch your Medicare plan; claiming you need to renew or upgrade your Medicare card or that you’re eligible for a refund; threatening to cancel your coverage.
How to Avoid a Medicare Scam
- Never share your Medicare card or number with anyone who initiates a call or email you didn’t solicit.
- Do not open a suspicious looking email message; delete it immediately. If you do happen to open the email, never click on any links within. This rule of thumb applies to all potential scams, not just Medicare fraud.
- Do not fall for threats to terminate your coverage or benefits if you do not sign up for a certain “preferred plan.” Medicare does not endorse any specific plan.
- Cut or shred your old Medicare card once a new one is issued. Some scammers falsely claim you need to return your old card.
- Do not offer information about your health or medical records, and do not use a genetic testing kit that wasn’t authorized by your doctor. Refuse the delivery or return to sender.
- To report a suspected Medicare scam:
- Call 1-800-MEDICARE (1-800-633-4227).
- Call the Senior Medicare Patrol Resource Center at 1-877-808-2468 or contact them online.
- Submit a report online to the Federal Trade Commission.
IRS Stimulus Scams
2024 is the last year people can claim missed government stimulus checks, and scammers know it. The IRS will never call you about stimulus payments; any communication from the IRS about your finances will always be through the U.S. mail. For legitimate information about IRS stimulus money, call 1-800-919-9835 or visit IRS.gov.
Check Baking Scams
Despite the name, this scam is not about a cozy time in the kitchen. It’s about exploiting the fact that many older people still use checks to pay their bills. If a swindler gains access to a check you’ve written (from your outgoing mail, trash, etc.), all they need to do is take a photo of it and run it through digital software that can erase the name and amount but retain the signature.
If possible, pay your bills online; if not, mail check payments directly from the post office. Credit card payments are an alternative to checks, but beware of credit card scams, too.
Reverse Mortgage Scams
A reverse mortgage is an option some seniors use to tap into equity built up in their homes. It’s also another way scammers can cheat older adults. Beware of anyone pressuring you to take out a reverse mortgage or claiming to help you access your home’s equity. In the wrong hands, your financial information could be used to steal not only your money, but also the deed to your home. Be sure you’re working with a reputable lender if you’re considering a reverse mortgage.
Gift Card Scams
According to the Federal Trade Commission, the most-reported way people lose money is by giving scammers the PIN on a gift card. If anyone asks you to purchase a gift card to pay a bill, fee, debt, claim a prize or for any other reason, don’t do it! Learn from AARP how gift card scams work, how to report them, and watch a video of a woman recognizing a gift card scam as it was happening.
Tech Support Scams
Some older adults are uncomfortable or unfamiliar with technology, making them ideal targets for tech scams. Phony “experts” call or email to say there’s a problem with your computer. If allowed remote access to your computer, they can run a fake test and “fix” your problem – for a fee. Do not engage in any communication with a stranger regarding a problem with your electronic or digital equipment.
Sweepstakes/Lottery Scams
“Congratulations! You’ve won a big prize!” are words that should immediately set off alarm bells. Sweepstakes and lottery scams promise monetary awards that can only be collected when payment is sent, usually via wire transfer. Knowing it will take some time for a bank to reject it, the scammer sends a fake check to the victim.
Scams That Prey on Elder Concerns or Insecurities
Here are just a few of the hundreds of scams fraudsters use to dupe vulnerable older people:
- Grandparent scams. This cruel ploy plays into our worst fear – a loved one is in peril. In this scam, someone pretending to be a distressed grandchild or relative says the only way they can get out of a dire situation is if money is sent. A.I. technology is making it even easier to mimic loved ones’ voices.
- Sweetheart scams. Real love doesn’t have a price tag, but these scams come at a great cost. More than a few seniors looking for love or companionship have shelled out thousands of dollars (sometimes their life savings) to someone they’ve never met. Armed with a fake photo and A.I. or robotic voice technology, these scammers claim that once they have enough money, they can leave whatever far-off place they’re stuck in and finally be with their hoodwinked “lover.”
- Anti-aging products. Anything promising to reverse or slow the aging process should be a red flag. Not only are many anti-aging products ineffective, they’re also dangerous, containing such ingredients as carcinogens, aluminum and bacteria. Do your research with an organization such as the National Institute on Aging before making any such purchases.
- Funerals. Aided by published obituaries, con artists extort money from grieving spouses or family members by claiming that the deceased has outstanding debt that must be paid immediately.
And the list goes on. It’s disheartening and frightening, and with advancing technology, new scams are appearing all the time. But there are some over-arching precautions seniors – and everyone – can take to protect themselves from would-be scammers.
General Tips to Avoid Being Scammed
- Become a skeptic. Be hyper-aware that scams of every possible variety exist, and don’t trust anyone who contacts you out of the blue. Remember, this goes for phone numbers and emails that look like they come from a legitimate source.
- Never give out personal information – EVER! No real agency would pressure you to give out identification or account numbers, financial statements, medical records, etc.
- Report a suspected or confirmed scam to the appropriate agency immediately. Not sure what the appropriate agency is? Search online in the simplest terms what happened to you (e.g., “Someone tried to sell me a gift card,” plus the word “scam”), and make sure the results are from valid, trustworthy entities (often sites ending in .gov or .org).
- Listen for dead air. A suspicious call will often be precipitated by silence. While you’re saying hello, there’s nothing in return until a computer center somewhere registers that you’ve picked up and tries to connect you to a real person. Don’t give them a chance; hang up first.
- Seek advice from a relative or friend. Don’t hesitate to consult with a trusted relative or friend if you suspect you’re being scammed. Adult children, check in with your parents occasionally to ask if they’ve received any suspicious calls or emails. Assure them you’re only looking out for their best interest, and if they have been scammed, do not shame them for being foolish or careless. It can happen to anyone.
- Place a fraud alert with your credit agencies if you suspect a scam. If you have in fact been scammed, close all bank and credit cards opened during the scam period.
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