Did you know that billions of dollars are taken away from vulnerable seniors every year due to scams? But why is that the case?
Many seniors are thought to have large amounts of money sitting in their bank accounts. Because of this, many scams targeting senior citizens result in financial abuse.
What do these scams include, and what should you look out for as you or your parent becomes older? In this blog, we’ll talk about five elder scams you should be aware of and how you can protect yourself and your loved ones from falling victim to them.
- Lottery Scams
Winning the lottery or any sort of sweepstakes can seem exciting in the moment. However, AARP explains that if you are ever contacted by phone, postcard, email, or social media that you have won a prize, this is most likely a financial scam.
Con artists may tell you that you have won, but in return, they will ask that you provide them with bank account information, tell you to purchase gift cards and that you provide them with the card numbers, or request you send money through a wire transfer. Be careful not to act too fast. If you or your parent are contacted and told that you have won the lottery or sweepstakes, know that this is likely a scam.
- Grandparent Scams
Does your parent often worry about their family members? Grandparents have a special place in their hearts for their loved ones and will do what they can to make sure that they’re safe and healthy. Unfortunately, this leads many con artists to take part in what is called the grandparent scam.
Scammers will either call or email the grandparent posing as the relative or a lawyer or law enforcement agent who claims to represent the relative. Said individual will tell the grandparent that they are in distress and need money, and the grandparent is often told to wire money to be used for hospital bills, bail money, etc.
If your parent is contacted about this, make sure that they contact their relative at a trusted phone number to confirm what was said. It is best to make sure that all the details are correct before attempting to help the relative, although, it is most likely that these kinds of situations are phone scams.
If your parent falls victim to this, it is suggested that they report it to local law enforcement and a state attorney general, as well as the National Consumers League Fraud Center.
- Mortgage Scams
If you or your parent are homeowners, keep an eye out for reverse mortgage scams. As noted by Investopedia, a reverse mortgage is a tool that is available to seniors who are over the age of 62 as they can be helpful during their retirement years.
However, many scams occur with reverse mortgages, such as foreclosure and equity theft scams. Investopedia shares a few different ways to avoid these kinds of scams, which includes going to reputable sources.
- Investment Scams
As seniors begin to reach their retirement, many begin to want to invest their money in different places, hoping to receive a return later. Beware of “get rich quick” schemes and other scams that may reel you or your parent in. While you will invest your money, you will not get the return you are looking for.
As AARP discusses, scammers try to get people’s attention through email, robocalls, social media, and television. Always be wary of these. Being told to send money immediately is just one of the giveaways that the investment is a scam.
- Medicare Scams
Once seniors reach the age of 65 and are eligible for Medicare, many of these elders are unfortunately targets of Medicare fraud. In this case, as Medicare explains on its government website, scammers might try to possess your Medicare number or other personal information so that they can steal your identity.
To prevent this from happening, make sure that you protect your Medicare card as best as you can. Keep in mind that they will not call to sell you anything, they will not come to see you at your home, they will not ask for your Medicare Number or other personal information (unless you have requested them to contact you previously), and similar scenarios.
Keep in mind that you may receive calls from people who say that they will give you things in exchange for your Medicare Number. Beware of this, and make sure that your parent does not fall victim to it either.
If you do think that you may have been a victim of Medicare fraud, do not hesitate to call the Medicare hotline for help.
Stay Safe, Stay Aware
It is essential that older adults are aware of the different kinds of scams out there that result in elder abuse. They may be more susceptible to falling for scams resulting in financial exploitation, but they don’t have to be. Take the time to educate yourself and your parent about elder fraud. Remember that many scammers ask for important information such as your Social Security, credit card number, and other important personal information. Avoid giving this away.
There are simple ways to make sure that you and your parent do not become victims of these scams, such as registering for the National Do Not Call Registry. If you have been the victim of a scam, contact legal services and Adult Protective Services if you feel prompted to do so. The U.S. Department of justice official website is also a good place to find more information.