According to the FBI’s Internet Crime Report, U.S. consumers ages 60 and older submitted more complaints about financial fraud than any other age group in 2024 (147,127, marking a 46% increase over 2023). They also reported losing more money to scams than any other age group ($4.8 billion, representing a 43% increase over 2023). And while another report, the BBB’s Scam Tracker Risk Report, indicates that the age group most susceptible to scams in 2024 was adults ages 55–64, it also shows that U.S. consumers ages 65 and older suffered the largest median monetary losses when falling victim to scams during the year.
Both reports clearly spotlight the importance of financial fraud prevention for seniors. And the best ways to protect seniors from financial fraud and scams include education, encouraging skepticism, and helping them implement security best practices.
Cause for Concern About Financial Scams Against Seniors
Knowing that millions of elderly Americans are victimized by financial scams each year, the FBI maintains a constant focus on fraud against seniors. According to the nation’s top law enforcement agency, the elderly can be especially vulnerable to scams because they often share common traits that make them highly attractive to scammers:
- Seniors are widely considered to be trusting and polite.
- They typically own a home, have good credit, and have accumulated substantial financial savings.
- The elderly are often less likely to report fraud because they don’t know how or are embarrassed to have fallen victim to scams.
In addition, Psychology Today reports that the medical conditions and medications that inherently become more common with age can lead to cognitive impairments that make older consumers more vulnerable to financial scams.
Common Financial Scams Targeting Seniors
To help keep seniors’ identity and assets safe, it’s critical to encourage them to stay up to date on the latest trends in financial fraud. According to the previously mentioned 2024 Internet Crime Report from the FBI, the top six types of senior citizen fraud reported in that year were:
1. Phishing/Spoofing
These cybercrimes involve using deceptive practices to trick the target into providing money or sensitive information, such as usernames and passwords. Phishing scams use fake emails or websites to impersonate legitimate and trusted businesses or organizations. Often used to facilitate phishing efforts, spoofing refers to the practice of disguising the source of communications to make them appear legitimate.
2. Tech Support Scams
In tech support scams, cybercriminals offer “fixes” for nonexistent issues with their targets’ computers, phones, and other technological devices, then request payment for those services. They may seek remote access to the device they claim to be servicing in order to steal the owner’s personal information or install malicious software.
3. Extortion
In extortion schemes, criminals use threats or intimidation to obtain money, property, or services from their victims. Extortionists commonly leverage compromising information about the intended target, such as intimate photos or private details the victim would not want shared with others.
4. Personal Data Breach
In these security incidents, consumers’ personal information — such as Social Security numbers or financial information — is accessed, disclosed, or stolen without their authorization. The breaches often result from a failure by legitimate holders of the information to keep it protected. Criminals can use the compromised information to commit identity theft, financial fraud, or other crimes targeting seniors.
5. Investment Scams
Investment scams use misleading information and/or false promises to convince victims to buy into fraudulent or nonexistent investment opportunities. The scammers behind them often tout high returns with little to no risk attached, all with the ultimate goal of stealing investors’ money.
6. Non-Payment/Non-Delivery Scams
Often carried out in the e-commerce environment, each of these scams involves a breach of the foundational buyer-seller agreement. In a non-payment scam, a “buyer” receives goods or services from a seller without making a payment. A non-delivery scam is the opposite: A “seller” accepts funds from a buyer without ever providing the goods or services purchased.
7 Financial Fraud Prevention Tips for Seniors
Following fraud prevention best practices is one of the best ways to avoid falling victim to financial scams targeting seniors. Here are seven tips that can help seniors (and everyone else) steer clear of scams:
1. Resist the urge to act quickly.
Many scammers send fake messages that attempt to create a sense of fear or urgency to get victims to act fast, without thinking things through or practicing due diligence.
2. Be leery of unusual payment types.
Any request to send funds via gift cards, cryptocurrency, wire transfer, or other unusual form of payment should serve as a red flag, as scammers often seek these forms of payment.
3. Confirm the identity of anyone making requests.
Make sure the person or organization behind the communication you receive is legitimate, whether the request for money or information comes via phone, text, or email. One effective tactic is to track down the official contact information of the person, business, or group behind the request, then reach out directly before providing any funds or sensitive data.
4. Safeguard personal information.
Be careful about providing personal or financial details to anyone, especially when you didn’t initiate the communications. In the wrong hands, this information can enable scammers to commit identity theft or financial fraud.
5. Don’t follow suspicious or unknown links.
Links sent via email, text, or social media could be fraudulent, especially when coming from an unknown sender. To make sure you’re going where you expect to go online, navigate directly to the official website then find what you’re looking for there.
6. Closely monitor accounts.
Keep a close eye on your credit card, checking, savings, and other financial accounts, monitoring them regularly for any unfamiliar transactions. Today’s digital banking and mobile app offerings can provide fast and easy access to account information at any time and from anywhere, so you don’t have to wait for statements to review your current standing.
7. Leverage tech tools.
Modern tools, including multi-factor authentication and account alerts, provide added layers of security for your financial accounts. These steps make it harder for scammers to commit fraudulent acts or to do so unnoticed.
Recognizing Financial Abuse Red Flags
Financial abuse is a type of financial exploitation committed by someone the victim knows. As with helping seniors avoid financial fraud and scams, protecting an elderly person from financial abuse involves a mix of education and strong security measures. It can also be helpful for family and friends to closely monitor the financial well-being of elderly loved ones and know the signs of senior financial exploitation.
Common red flags for elder financial exploitation cited by the U.S. Department of Justice include:
- Abrupt changes in banking behaviors or bank account balances
- Unexpected charges on the individual’s credit card
- Sudden changes in a senior’s will or other important finance-related documents
- Unauthorized cash withdrawal(s) using the individual’s ATM card
- Newly added names on the individual’s banking signature card
- Purchases of new and unnecessary services
- A sudden and unexplained transfer of the individual’s assets
Financial scams targeting seniors are unlikely to go away, so knowing how to protect the elderly is the best prevention tactic. Educate yourself on current trends and best practices for avoidance, then share that information with your loved ones and help them implement proactive security measures that protect their financial and personal information.
Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs ranging from checking and savings to retirement accounts, mortgages, other personal loans, and more, visit arthurstatebank.com.
