Scam Watch-Be On Guard
In 2024, scams reported to the Federal Trade Commission (FTC) by adults age 60 and older reached $2.4 billion, up 26.3% from $1.9 billion in 2023, according to the FTC’s annual report to Congress. The increase was driven by scams that involve individual losses of $100,000 or more, accounting for $1.6 billion of the total. Here are four common financial scams targeting seniors—and what victims can do.
Investment Scams
These scams aim to swindle seniors in particular by promising them high guaranteed returns with little risk in fake cryptocurrency ventures or phony high-yield investments, among other pitches. Scammers pretend to be investment managers, telling victims they can make money by investing in cryptocurrency. Victims wire money to phony online accounts. Scammers then send them fake account statements that look so real they fool experts.
• What to Do: Report an investment scam to the FBI’s Internet Crime Complaint Center, the FTC or call the Financial Industry Regulatory Authority’s helpline to file a complaint at 844-574-3577.
Government Impostors
Swindlers are increasingly contacting seniors by phone, email and text or appearing in person pretending to be agents from the Internal Revenue Service, Medicare, Social Security Administration and other government agencies to discuss account issues. They may use a caller ID to make it seem like they are calling from an official government number, use AI to create fake voices to trick victims, or send a phishing text or email with a link that when clicked installs malware or steals personal data. Some accuse victims of owing back taxes and demand immediate payment to the IRS under threat of arrest or deportation. Others claim there is a problem with Social Security accounts, often alleging it has been linked to a crime. Their goal is the same: to steal your personal information and money.
The IRS, the Social Security Administration and the Centers for Medicare and Medicaid rely on the U.S. Postal Service to send important account information.
• What can you do? Contact credit-rating firms to freeze credit and report the scam to the relevant agency and the FTC. Review all statements from Medicare, Medicaid, Social Security and any agency that contacted you to see if there are any unauthorized benefits or billing for fake services, medical care, equipment or prescriptions. If you were a victim of a tax scam, file a paper 1040 tax return and attach it to Form 14039 Identity Theft Affidavit or submit the forms electronically at IdentityTheft.gov.
Romance Scams
Social-media romance scams exploiting seniors who may be lonely and seeking companionship are on the rise, according to fraud experts. In romance scams, perpetrators create fake social media and dating sites and apps to create relationships with seniors. Their goal is to develop a trusted relationship and make a pitch for money.
• What you can do: Tighten privacy settings on all socialmedia platforms to limit who can see you and send you messages. Report the crime to the FBI’s Internet Crime Complaint Center, the FTC and local police. Update online banking passwords.
