Financial scams targeting older adults are becoming more common and more sophisticated each year. In 2024 alone, the FBI’s Internet Crime Complaint Center reported $4.885 billion in losses tied to scams affecting seniors.
Elder fraud reports involving losses of $10,000 or more have increased significantly in recent years, and cases involving losses exceeding $100,000 have grown even faster. For many families, the financial damage isn’t discovered until substantial losses have already occurred.
Understanding how these scams work is the first line defense for families to protect aging parents.
Why Scammers Target Seniors
Scammers target older adults for several reasons.
Seniors grew up in a time when answering the phone or responding to requests for help was understood to be the polite thing to do. Criminals often exploit that trust.
At the same time, many older adults have accumulated retirement savings, home equity, or other financial assets, making them attractive targets for fraud.
Scammers also rely heavily on urgency. Their goal is to create fear or pressure so victims act quickly before they have time to speak with family members, financial advisors, or attorneys.
Because of this, even very careful and financially responsible individuals can become victims.
Common Scams Families Should Recognize
There are several scams that turn up repeatedly in reports from federal investigators. They follow similar patterns, but have different characteristics.
We’ve created a free comprehensive guide to help you identify these scams and make your elderly family members aware of common red flags. We also provide tips on what to do if your elderly family member gets caught up in one of these scams.
Here are the most common scams to look out for:
Grandparent scams start with someone pretending to be a grandchild or family member in trouble who urgently needs money.
Government impersonation scams involve criminals posing as representatives from agencies like Social Security or Medicare and requesting personal information or payment.
Romance scams often begin through social media or online relationships where scammers build trust over time before requesting financial help.
Tech support scams typically appear as urgent computer warnings instructing victims to call a number where scammers request payment and remote access to devices.
All of these scams rely heavily on emotional pressure and secrecy to prevent victims from verifying the situation.
As an added note, criminals are becoming increasingly skilled at using artificial intelligence (AI) to create false identities and even simulate the voices and video clips of their victims’ friends and family as part of the scam. The reason this technology is so effective is that seniors are unaware it exists. It’s crucial that family members understand the capabilities of the technology so that they can educate elderly family members and recognize when it may be being used as part of a scam.
Warning Signs Families Should Watch For
Family members are often the first to notice that something may be wrong.
Some potential warning signs include:
- unusual withdrawals from financial accounts
- requests for money through gift cards or wire transfers
- sudden secrecy about financial matters
- new relationships requesting financial assistance
- a sense of urgency around financial decisions
If something feels “off” in conversations with your parents or loved ones, it may be time to initiate a calm conversation with them about what’s happening.
A Resource for Families
We understand that scams are becoming more sophisticated than ever. That’s why we’ve created a free comprehensive guide for families that explains:
- The most common scams targeting seniors
- Warning signs of financial scams
- Steps families can take to reduce risk
- What steps to take if an elderly family member is victimized by a scam
Download the guide and start the conversation with your family members today!
Download the full guide:
Protecting Aging Parents from Financial Scams