Top Financial Scams Targeting Seniors

Seniors are common targets of financial scams, for their perceived naivety and significant savings accounts. When older individuals are not protected against identity theft and other forms of fraud, the results can be devastating. What can you do to help your aging family members be more aware? Familiarize yourselves with some the most common financial scams targeting seniors. We’ve listed 5 from the National Council on Aging (NCOA).

Health Insurance

In this scenario, a scammer pretending to be a Medicare representative may try to coax a person over the age of 65 into providing personal information for insurance needs.

To combat this common occurrence, warn your loved one that it’s unlikely for Medicare to call and ask for sensitive information, such as a Social Security number.

Prescription Medications

While it may seem like a great idea to save money on prescription drugs, not all “online pharmacies” are legitimate. Buying from these schemers may result in your loved one taking an unsafe medication.

To avoid this, do your research and never make an online purchase from a website that does not have a secure padlock in the address bar. This indicates that all communications between you and the website are encrypted, including credit card numbers and addresses you may enter.

Funeral Fraud

Unfortunately, some people take advantage of grief for money. In this scenario, a fraudster will scour the obituaries for a local funeral to attend. After the service, the scammer approaches the family and claims the deceased owes a debt.

In extreme cases, the fraud may even involve the funeral directors, who push unnecessary expenses on grieving families and pocket the extra money. The best defense is to do your research on funeral costs and be wary of strangers who suddenly appear after the death.

Internet Scams

This may not be true of all seniors, but many older people can be resistant to learning new technology. When a pop-up or unfamiliar email appears online, they may not know it’s unsafe to click. Scammers take advantage of this through supposed anti-virus software that actually downloads malware to steal personal information from computers. To avoid becoming a victim of internet fraud, never click on links from unfamiliar senders.

Phony Calls

Commonly known as the grandparent scam, a fraudster calls an older person claiming to be a grandchild. They say something like, “Hi Grandma, do you know who this is?” assuming the individual will take their best guess at who the voice sounds like. If it works, the scammer will request money for some kind of financial emergency. If this happens, your loved one should hang up the phone and contact another family member about the grandchild’s whereabouts. More often than not, the child is safe and sound at home.

There are a variety of ways that an identity thief can gain access to your loved one’s personal information. To be prepared for the unexpected, conduct a monthly financial checkup to make sure credit reports and account transactions are in order.
 
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