Financial scams are everywhere these days and no one is immune. And sometimes it leaves older adults with no way to recoup their losses. Worldwide, people age 60 and over lost a combined $3.4 billion to fraud in 2023 alone.¹ Behind that shocking figure? More than 100,000 very real people who have been robbed of their savings and financial security.¹

“We all need to work together to make sure our seniors, their caregivers, families, and friends know the signs to look for that a criminal is after your money,” said FBI Criminal Investigative Division Assistant Director Michael Nordwall in a Facebook post.

NCOA is here to help. When it comes to stopping online scammers, knowledge is power. Below, we cover the most common scams targeting older adults. We’ll also tell you what to do if you or someone you know encounters one.

Why do financial scammers target seniors?

Fraudsters and con artists tend to go after older adults because they believe this population has plenty of money in the bank. But it’s not just wealthy older Americans who are targeted. Older adults with low income are also at risk for fraud.

Plus, many people are embarrassed to report financial scams. And they can be tough to prosecute. Criminals therefore consider them “low-risk.” However, these scams can be especially devastating for older adults whose ability to recover their losses is limited.

How common are financial scams targeting older adults?

In 2023, 536 people filed complaints with the U.S. Senate Special Committee on Aging Fraud Hotline. That brings the total number of registered complaints to nearly 12,300 since 2013.

The five scams that top the list of complaints for seniors:²

1. The grandparent scam. The grandparent scam is so effective because it exploits people’s emotions. First, a caller gains trust by tricking their target into volunteering information, like a grandchild’s name. They may say something like, “Hi Gram, do you know who this is?” Then, with that name at the ready, they impersonate the grandchild.

In this scam, fake grandchildren ask for help with car repairs, late rent, a medical emergency, or even to post bond. They pretend to be in distress. They may even beg the grandparent not to tell anyone.

In other versions of this scam, a caller claims to be an arresting police officer, doctor, or lawyer trying to help the grandchild. They prey upon emotions to pressure victims into sending money as quickly as possible. And who among us wouldn’t readily help a cherished relative in desperate financial need? These scams are even harder to identify and resist thanks to artificial intelligence (AI). Today, con artists can clone real voices of real relatives and use them to commit fraud.

People who run grandparent scams often ask to be paid through gift cards or wire transfers. These don’t always require identification to collect, which means victims have no way ever to recover their money. Some victims report that scammers showed up at their homes, posing as “couriers” to pick up the money.

2. Financial services scam. These cons work because they appear to come from a legitimate source: a bank, a mortgage company, or a debt collection agency. Scammers call, text, or send email messages that look and sound perfectly legitimate. They may claim that a checking or savings account has been compromised and ask for personal information, such as a password or Social Security number, to “secure” it. They may promise better rates or terms on a home loan. Or they may threaten arrest for unpaid medical bills—which may or may not exist.

Each of these types of claims is a lie. But scammers know how to be convincing. They can easily fake the information on Caller ID. They know how to make email addresses and links look real. And they often will use threatening language to scare their victims into volunteering sensitive information or sending money. Usually, the people committing this type of fraud will demand immediate payment through a peer-to-peer (P2P) platform.

3. Tech support scams. These scams prey upon the doubts and discomforts that many people have around computers. In fact, when it comes to fraud committed against older adults, tech support scams top the list.² How do they work? Typically, a person’s computer or phone screen will freeze or go blank. A pop-up message will appear with a phone number to dial for help. When the user calls it, the scammer on the other end will ask for permission to log on to the device remotely. This fake “tech support” representative also may demand a fee to repair the “issue.”

4. Government impersonation scams. In government impersonation scams (also known as government imposter scams), callers pretend to be from the Internal Revenue Service (IRS), Social Security Administration, or Medicare. They threaten to arrest or deport the person who picks up the phone if they don’t pay their “unpaid taxes”. Or, they may threaten to cut off Social Security or Medicare benefits unless the person provides personal details. This information can then be used to commit identity theft.

Government imposters may demand prepaid debit cards, cash, or wire transfers as payment. Using special technology, they often “spoof” the actual phone number of a government agency or call from the same ZIP code (202 for Washington, D.C., for example). This can trick some people into thinking the caller is from a valid source.

5. Romance scams. As more people turn to online dating, con artists are seizing the opportunity. Romance scammers create fake social media profiles and use them to gain trust and steal money. In some cases, these scammers may be (or pretend to be) overseas. They may ask their victims to pay for visas, medical emergencies, and travel expenses to come to the U.S. Romance scams (also called sweetheart scams) can drag out for a long time. As a result, victims often lose a lot of money. The FTC found that in 2023 alone, more than 64,000 people reported a romance scam, with losses totaling $1.1 billion.² Get tips for avoiding sweetheart scams.

Other popular scams targeting older adults

• Sweepstakes and lottery scams. The sweepstakes scam is familiar to many of us. Here, bad actors call with good news: the person answering the phone has won the lottery or a prize of some kind. In order to claim their winnings, that person must send money, cash, or gift cards up front—sometimes amounting to thousands of dollars. Supposedly, this money covers “taxes” and “processing fees”. Scammers may impersonate well-known sweepstakes organizations (like Publishers Clearing House) to build trust among their targets. Of course, no prize is ever delivered. Sometimes, fraudsters convince people to send even more money by telling them their winnings will arrive soon. Many continue to call people for months and even years after defrauding them out of an initial sum of money.
• Robocalls and phone scams. One common robocall is the “Can you hear me?” call. When the person who answers says “yes,” the scammer records their voice and hangs up. The criminal then has a voice signature to authorize unwanted charges on items like stolen credit cards. Robocalls use automated technology to dial large numbers of households from anywhere in the world. While there are legal uses for this technology, robocalls can also be used to carry out a variety of phone scams. These include false claims about expiring car or electronics warranties. Just like government impersonation calls, scammers often spoof the number they're calling from to make it seem like they’re from a trusted organization. Yet another popular phone scam is the “impending lawsuit” scam. In this case, someone receives an urgent, frightening call from a person pretending to be from a government or law enforcement agency (like the IRS or the police). They are told if they don't pay a fine by a certain deadline, they will be sued or arrested for some made-up offense.
• Business imposter scams. The Federal Trade Commission (FTC) has found that at a business imposter scam takes a heavy financial toll on consumers age 60 and older.³ These criminals pretend to be from a business or charity, which makes them seem trustworthy. Like government imposters, business imposter scammers can fake their caller ID to make it seem like a legitimate communication. These fraudsters will try to convince someone to send money or a gift card or share personal information. 
• Investment scams. This type of scam involves the illegal or alleged sale of financial instruments that typically offer low risk and guaranteed returns. The use of cryptocurrency (digital assets, such as Bitcoin) is common in investment scams. Cryptocurrency-related investment fraud cost adults age 60 and over $716 million in reported losses in 2023.¹
• Medicare and health insurance scams. Every U.S. citizen or permanent resident age 65 and over qualifies for Medicare. This makes the program a prime tool for fraud. In Medicare scams, con artists pose as Medicare representatives in order to convince older adults to share their personal information. Scammers might also provide bogus services at makeshift mobile clinics, then bill Medicare and pocket the money. Medicare scams often follow the latest trends in medical research, such as genetic testing. 
• Internet and email fraud. Some older adults come to technology late, and their learning curve is therefore steep. That makes them easier targets for internet and email scams. These scams include pop-up windows that look like anti-virus software; in reality, these windows install computer viruses when clicked on. These viruses can expose personal information or even disable the computer until a person pays a lot of money to have it fixed. (Sometimes this is called “ransomware.”) Internet firewalls, built-in virus protection, and other safety precautions can help prevent this type of fraud. However, users must know about these tools—and it can be hard to keep up with the latest ones. Another scam, called a “phishing” scam, uses emails and text messages that seem legitimate. They appear to come from a well-known bank, credit card company, or online store. These messages may request personal data, such as a log-in or Social Security number, to verify an account; or they may ask the recipient to update their credit card info. Scammers use this information to steal money or additional personal details. Find out how to protect yourself against phishing scams.

What to do if you think you've been scammed

Scams are specifically designed to catch us off guard, and they can happen to anyone. There’s nothing to be ashamed of if you think it’s happened to you. Keep important phone numbers handy, including the local police, your bank, and Adult Protective Services.

“It’s a heartbreaking fact that scams have wiped out people’s retirement savings,” said Lois Greisman, Associate Director, Division of Marketing Practices at the FTC. “If a business, government agency, or even a grandchild in need contacts you, it’s critical to check who you’re really dealing with. Never panic or react quickly. Contact them at a number you know is real to verify.”

To obtain the contact information for Adult Protective Services in your area, call the Eldercare Locator, a government sponsored national resource line, at 1-800-677-1116 or visit their website.

You can also report scams online to the FTC. Sharing your experience can help prevent it from happening to someone else.

Sources

1. Federal Bureau of Investigation. Internet Crime Report 2023. Found on the internet at https://www.ic3.gov/AnnualReport/Reports/2023_IC3Report.pdf

2. U.S. Senate Special Committee on Aging. Fighting Fraud: Scams to Watch Out For. September 2024. Found on the internet at https://www.aging.senate.gov/imo/media/doc/2024_fraud_book_english.pdf

3. Federal Trade Commission. Age and Fraud. Found on the internet at https://public.tableau.com/app/profile/federal.trade.commission/viz/AgeandFraud/Infographic