Protecting Seniors From Financial Fraud:

How To Spot and Prevent Scams

Financial fraud targeting older adults is a growing crisis, with new scams emerging every year. Criminals often prey on seniors to exploit their financial vulnerability.

“Most people over the age of 62 are living off of a very limited set of resources,” says industry expert Kevin Nazemi in an interview with Fast Company magazine. “Typically, this is a Social Security check, and to the extent that they have savings, they’re decumulating.” With fewer opportunities to recover from financial losses, seniors can suffer severe consequences from even small-scale fraud.

In fact, many scams involve amounts that may seem minor but can be devastating for someone on a fixed income. Losing even a fraction of their income or savings can mean the difference between paying rent or affording medication. But plenty of older adults with more significant assets get pulled in by scams, too.

Top Financial Scams Targeting Older Adults

How does financial fraud against seniors continue to happen, even with frequent warnings in the news and articles like this? Scammers are very smart and creative—and now, they have artificial intelligence (AI) to help them.

“AI has the potential to make this problem far worse since it allows fraudsters to impersonate banks and businesses,” writes Shalene Gupta, the author of the Fast Company article. “Worse, scammers can use AI to impersonate loved ones through video and voice.”

According to the National Council on Aging and the FBI, these are among the top scams directed toward older adults:

1. The grandparent scam. Scammers impersonate a grandchild in distress, urgently requesting money for an emergency.
2. Medicare/health insurance scams. Fraudsters pretend to be Medicare representatives and request personal information or offer fake medical services in exchange for payment.
3. Tech support scams. A caller will claim to be from a real tech company alerting the senior to a computer problem. They use the senior’s trust to gain access to their computer remotely, then steal private information and/or demand payment for bogus tech support.
4. Counterfeit prescription drugs. Scammers lure seniors with online deals for cheaper medications that are either ineffective or, worse, harmful.
5. Funeral and cemetery scams. Deceptive operators take advantage of grieving families, pressuring them into unnecessary or overpriced funeral expenses. Some scammers even comb through obituaries to find new victims.
6. Fraudulent “anti-aging” products. Many older adults seeking to maintain their health and appearance are tricked into purchasing bogus treatments that are overpriced and sometimes dangerous.

These scams are not only financially devastating but can also take a serious emotional toll, leaving victims feeling embarrassed, isolated, or fearful.

Warning Signs of Elder Financial Abuse

The American Bankers Association highlights several red flags that may indicate financial fraud or abuse against an older adult:

• Unusual bank account activity – Large, unexplained withdrawals or frequent transfers to unfamiliar recipients.
• Sudden account changes – Adding new signers, changing power of attorney, or switching to unfamiliar financial products.
• Unpaid bills despite sufficient funds – If an older adult suddenly struggles to pay routine bills despite having money, it could indicate fraud or financial manipulation.
• New “friends” or caretakers – A sudden appearance of an overly involved acquaintance who takes control of financial matters may be a red flag.
• Fear or confusion about finances – If an older adult seems anxious when discussing money or is reluctant to speak about financial decisions, they may be experiencing fraud or undue influence.

How To Protect Yourself and Loved Ones

Preventing financial fraud requires awareness, caution, and proactive steps:

• Verify requests for money. If someone claims to be a relative in trouble, contact them directly or check with other family members before sending money.
• Be skeptical of unsolicited offers. Whether it’s a “free” Medicare service or a “limited-time investment,” never share personal or financial information with unknown sources.
• Monitor financial accounts. Regularly review bank and credit card statements for unauthorized transactions. Setting up account alerts can help detect fraud early.
• Shred sensitive documents. Avoid identity theft by shredding statements, medical bills, and other documents containing personal information.
• Report suspicious activity. Report suspected financial fraud to the Consumer Financial Protection Bureau at (855) 411-2372 or the FBI’s Elder Fraud Hotline at (833) 372-8311.

Awareness Is the First Line of Defense

Remember: Stay informed and vigilant. Don’t panic. Remember trusted adages like “If it sounds too good to be true, it probably is.” By staying informed and cautious, seniors can protect themselves from becoming another statistic.

How Right at Home Can Help

Right at Home has been helping seniors and their families navigate the aging journey for the last 30 years. Our caregivers are trained and insured/bonded and provide a wide range of in-home care services. To find out more, use our office locator to call the Right at Home office nearest you and speak to an aging expert. They can help you determine which services will help you and conduct a FREE in-home care consultation.

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