Help protect yourself from elder fraud — a little vigilance goes a long way

Read time: 7 minutes

Thieves have been trying to separate people from their money since time immemorial. While break-ins and pickpocketing will still do for some ne’er-do-wells, online scams are on the rise.

According to CNN, a record $12.5 billion in losses from online scams were reported to the FBI in 2023 — the highest tally of losses from digital scams since the FBI began reporting on the subject more than two decades ago.

And, according to the FBI’s Internet Crime Complaint Center (known as IC3), elder fraud complaints to the FBI increased by 14% in 2023. And that percentage would be higher if not for the fact many of these crimes go unreported.

Three other takeaways from the FBI’s 2023 Elder Fraud Report:

Older Americans seem to be disproportionately impacted by scams and fraud.
Scams targeting individuals aged 60 and older caused over $3.4 billion in losses.
Tech support scams were the most widely reported kind of elder fraud — and investment scams were the costliest.

Here’s how a few of these scams work:

Computer tech support

A pop-up message or blank screen appears on your computer or phone, telling you your device is damaged and needs fixing. When you call the support number for help, the scammer may either request remote access to your computer and/or demand you pay a fee to have it repaired.

Tip: Whether it’s a phone call or a website, legitimate tech support won’t ever proactively contact you to fix an issue.

Government impersonation scams, such as someone posing as a Medicare/Social Security/IRS representative asking for account information, or through phishing.

The scammer might:

Say your Medicare or SSA benefits may be cut off if you don’t provide Personal Identifiable Information (PII).
Say you have unpaid taxes that must be paid immediately or you’ll be arrested or deported — and you must pay in cash, prepaid debit cards or wire transfers.
Spoof the phone number of a government agency or call from the same area code (202 for Washington, DC, for example).

Tip: Government agencies will never call, email, text, or message you on social media to ask for money or personal information. Only a scammer will do that.

Phishing Phishing is when you get an unexpected email or text message that looks like it’s from a company you know or trust — like a bank or credit card company. The scammer wants you to click on a link or open an attachment within the email or text in order to try to steal your passwords, account numbers or Social Security number … so they can get access to your email, bank, or other accounts. According to the Federal Trade Commission (FTC), the scammer might: Say they’ve noticed some suspicious activity or log-in attempts — they haven’t Claim there’s a problem with your account or your payment information — there isn’t Say you need to confirm some personal or financial information — you don’t Include an invoice you don’t recognize — it’s fake Want you to click on a link to make a payment — but the link has malware Say you’re eligible to register for a government refund — it’s a scam Offer a coupon for free stuff — it’s not real While real companies might communicate with you by email, legitimate companies won’t email or text with a link to update your payment information.	Investment-related scams These scammers promote their own investment “success,” often luring people to bogus investment websites. They promise huge returns and often say an investment is growing. But if people invest (reports say it’s usually in cryptocurrency), they end up empty-handed.
	The grandparent scam The scammer pretends to be a grandchild or other relative in distress. “Hi, Grandma (or Grandpa), do you know who this is?” When the person, caught off guard, gives a grandchild’s name or asks questions, the scammer works to secure their trust, and asks for money.
	Fake prize, sweepstakes and lottery scams You’ve supposedly won something, but to claim your winnings, you’re asked to send cash or gift cards up front, or to provide some kind of account information.

Phishing

Phishing is when you get an unexpected email or text message that looks like it’s from a company you know or trust — like a bank or credit card company. The scammer wants you to click on a link or open an attachment within the email or text in order to try to steal your passwords, account numbers or Social Security number … so they can get access to your email, bank, or other accounts.

According to the Federal Trade Commission (FTC), the scammer might:

Say they’ve noticed some suspicious activity or log-in attempts — they haven’t
Claim there’s a problem with your account or your payment information — there isn’t
Say you need to confirm some personal or financial information — you don’t
Include an invoice you don’t recognize — it’s fake
Want you to click on a link to make a payment — but the link has malware
Say you’re eligible to register for a government refund — it’s a scam
Offer a coupon for free stuff — it’s not real

While real companies might communicate with you by email, legitimate companies won’t email or text with a link to update your payment information.

Investment-related scams

These scammers promote their own investment “success,” often luring people to bogus investment websites. They promise huge returns and often say an investment is growing. But if people invest (reports say it’s usually in cryptocurrency), they end up empty-handed.

The grandparent scam

The scammer pretends to be a grandchild or other relative in distress. “Hi, Grandma (or Grandpa), do you know who this is?” When the person, caught off guard, gives a grandchild’s name or asks questions, the scammer works to secure their trust, and asks for money.

Fake prize, sweepstakes and lottery scams

You’ve supposedly won something, but to claim your winnings, you’re asked to send cash or gift cards up front, or to provide some kind of account information.

Romance scams

The FTC reported in the first six months of 2023, half of people who said they lost money to an online romance scam said it began on Facebook, Instagram or Snapchat.

Robocalls and phone scams

These methods take advantage of sophisticated, automated phone technology (for which there are legal uses) to carry out scams on people who answer the phone.

The scammer might:

Ask, “Can you hear me?” When a person says “yes,” the scammer records the reply and now has a voice signature to authorize charges on stolen credit cards.
Claim a warranty is expiring on an electronic device and payment is needed to renew it.
Claim to be from a law enforcement or government agency, warning of an impending “lawsuit.” You’re told if you don’t pay a fine, you’ll be sued or arrested.

Online shopping scams

Most of these reports are about undelivered goods, with no-show clothing and electronics topping the list. These scams most often start with an ad on Facebook or Instagram.

Romance scams

The FTC reported in the first six months of 2023, half of people who said they lost money to an online romance scam said it began on Facebook, Instagram or Snapchat.

Online shopping scams

Most of these reports are about undelivered goods, with no-show clothing and electronics topping the list. These scams most often start with an ad on Facebook or Instagram.

Robocalls and phone scams

These methods take advantage of sophisticated, automated phone technology (for which there are legal uses) to carry out scams on people who answer the phone.

The scammer might:

Ask, “Can you hear me?” When a person says “yes,” the scammer records the reply and now has a voice signature to authorize charges on stolen credit cards.
Claim a warranty is expiring on an electronic device and payment is needed to renew it.
Claim to be from a law enforcement or government agency, warning of an impending “lawsuit.” You’re told if you don’t pay a fine, you’ll be sued or arrested.

How to protect yourself from scams and fraud

The National Institute on Aging offers these tips to help protect yourself and older adults from scams:

Don’t give out any Personal Identifiable Information (PII) over the phone or in response to an email, social media post, or text message. PII includes your Social Security number, bank account information, credit card numbers, PINs and passwords, as well as Medicare card number, etc.
Check incoming bills for charges you didn’t authorize. Contact the utility provider, credit card company, or bank if you see any charges you don’t recognize.
Protect your electronic accounts by keeping the security software on your computer and smartphone up to date and by using multifactor authentication when possible.
Don’t transfer money to strangers or to someone over the phone. Never buy a gift card to pay someone over the phone. Once you transfer money or share the numbers on the back of a gift card, there’s usually no way to get your money back.
If someone is trying to scam you, they may threaten you or pressure you to act immediately. If this happens to you, end the call.

The FTC recommends these ways to protect yourself from scams on social media:

Limit who can see your posts and information on social media. All platforms collect information about you from your activities on social media, but visit your privacy settings to set some restrictions.
If you get a message from a friend about an opportunity or an urgent need for money, call them. Their account may have been hacked — especially if they ask you to pay by cryptocurrency, gift card, or wire transfer. That’s how scammers ask you to pay.
If someone appears on your social media and rushes you to start a friendship or romance, slow down. Read about romance scams. Never send money to someone you haven’t met in person.
Before you buy, check out the company. Search online for its name plus “scam” or “complaint.”

To learn more…

Scammers are savvy and convincing, and their scams are designed to catch people off guard. Don’t be embarrassed if you think you or someone you know has been a victim of a scam — it can happen to anyone.

There are many resources to help you learn about, avoid and report scams. Here are just a couple.

Federal Trade Commission

www.consumer.ftc.gov

ftc.gov/scams

If you spot a scam, report it to the FTC at ReportFraud.ftc.gov.

National Elder Fraud Hotline

https://ovc.ojp.gov/program/elder-fraud-abuse/national-elder-fraud-hotline

Health insurance fraud and Medicare fraud are on the rise

Here are three resources for you if you suspect Medicare fraud.

Medicare (Office of Inspector General)

To report fraud involving Medicare, call 800-HHSTIPS (800-447-8477). This is the U.S. Department of Health and Human Services’ Office of Inspector General hotline. Or, if you prefer to file your report online, go to https://oig.hhs.gov/fraud/report-fraud/. You may need to request a new Medicare card if your number has been compromised.

State Health Insurance Assistance Program

If you’ve been a victim of Medicare fraud, you can also request assistance from your State Health Insurance Assistance Program (SHIP). To locate your state SHIP office, call 877-839-2675 or use the SHIP locator at https://www.shiphelp.org/.

Physicians Mutual^®

If you suspect fraud involving your insurance coverage with Physicians Mutual^®, please call our fraud hotline at 1-877-602-09261-877-602-0926.