As technology advances, so do the tactics of fraudsters looking to exploit unsuspecting individuals. Elder scams are fraudulent schemes specifically designed to deceive and steal from senior citizens. These scams can take many forms, including phone calls, emails, postal mail, or even in-person encounters. The goal of these scammers is often to gain access to financial information, such as credit cards or bank accounts, personal data, or directly steal money from their victims.
The following information is provided as a guide to help family members and friends take an active role in protecting their loved ones from unscrupulous fraudsters who prey on them. Highlights include why seniors are targeted, common types of scams targeting them, and how they can protect themselves and others.
Why Are Seniors Often Targeted for Scams?
Trusting Nature
Seniors often grew up in an era when trust was a valued trait, making them more likely to trust strangers.
Isolation
Loneliness can make seniors more vulnerable as they may seek social interactions, even with unknown sources.
Memory Challenges
Aging can affect memory and recognition, making it harder to spot scams and remember details like bank balances.
Lack of Technical Savvy
Seniors may be less familiar with modern technology and online scam signs, making them easier targets.
Financial Security
Many seniors have substantial savings, own their homes, and have good credit, making them attractive to fraudsters.
Insecurities
Scammers exploit seniors' insecurities by using threats related to health care or Social Security to coerce them into giving up financial information.
Common Scams Against Seniors
Grandparent Scams
A scammer poses as a grandchild in trouble, asking for money urgently for legal troubles or medical emergencies. AI technology can mimic voices, making it even more convincing.
For example, a trusted financial institution shared a case where an elderly customer recently fell victim to a grandparent scam and withdrew $12,500 in cash. The scammer claimed to be his granddaughter, saying she was in legal trouble and under a gag order, with threats to her life if the money wasn’t paid. The customer said it sounded just like his granddaughter. A "courier" came to his home in Omaha to collect the cash. Thankfully, the bank staff explained how AI can mimic voices and advised the customer to file a police report.
Lottery Scams
Claims of winning a lottery but requiring payment of taxes or fees before releasing funds.
Romance Scams
Someone they’ve never met in person expressing a deep emotional connection such as “love” or “soul mate”.
Telemarketing Scams
Unsolicited calls offering fake prizes, low-cost health care products, or financial schemes.
Charity Scams
Fake charities solicit donations, often after natural disasters or during holidays.
Tech Support Scams
Calls or pop-up messages claiming to be from tech support, requesting access to computers or personal information.
Account Takeover Scams
Scammers use stolen credentials to gain access to seniors’ bank accounts and make unauthorized transactions.
Check Fraud
Scammers forge or alter checks to withdraw money from seniors’ accounts.
Overpayment Scams
Sending fake checks for larger amounts, asking victims to deposit and return the excess funds before the check bounces.
Investment Scams
Promises of high returns, leading seniors to transfer money from their bank accounts into fake investments.
Wire Transfer Scams
Convincing seniors to wire money under the guise of helping a relative in distress or securing a prize.
Impersonation Scams
Scammers posing as bank representatives, calling seniors to "verify" account information or report suspicious activity. Metro will never call and ask a member to very account information.
Automatic Withdrawal Scams
Unauthorized automatic withdrawals from seniors’ bank accounts through fake subscriptions or services.
How to Protect Your Loved Ones from Financial Exploitation
Stay Informed
Help them keep up to date with common scams.
Verify Sources
Tell them to always verify the identity of anyone contacting them unexpectedly, whether by phone, email, or in person.
Be Skeptical
Encourage them to be suspicious of unsolicited offers, especially those that seem too good to be true.
Use Strong Passwords
Ensure that all their online accounts are protected with strong, unique passwords.
Monitor Finances
Help them regularly review bank statements and credit reports for any suspicious activity.
Set Up Alerts
Help them use Metro Credit Union’s app to set up alerts for suspicious activities on their accounts.
Most of all, it’s important to regularly discuss the dangers of scams and encourage the seniors in your life to ask their family and friends for help if they’re unsure about a situation. Remind them you’re just a phone call away.
If you suspect that you or a loved one has been scammed, it’s crucial to act quickly:
Contact Metro
Report any unauthorized transactions and request to freeze your accounts.
Report the Scam
If you believe you or someone you know has fallen victim to a scam, please reach out to the National Elder Fraud Hotline at 833-372-8311 or file a report with local law enforcement and the Federal Trade Commission (FTC).
Notify Credit Bureaus
Place a fraud alert on your credit reports to prevent further damage.
