6 Money Scams Targeting Elderly Individuals: Retirees Lose $28.3 Billion Annually

by | Aug 19, 2023 | Gold IRA




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Retirees get robbed $28.3 billion a year and 88% of cases are unreported

Family, friends, caregivers and other trusted people are the most common perpetrators of financial abuse.

The rate of financial exploitation has more than doubled since mid-March of 2020, exacerbated by the social isolation of the pandemic, according to a separate 2022 study by the AARP Public Policy Institute.

Jilenne Gunther, National Director of AARP’s BankSafe Initiative and lead author of the report, said that while strangers often rely on quick and irreversible transactions such as gift cards or wire transfers, perpetrators who know the victim are more likely to gain direct access to their victims’ bank accounts. But financial exploitation of any kind wreaks havoc on the lives of older adults and their families

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Top 6 Money Scams Victimizing Older Adults: Retirees Get Robbed $28.3B/Year

As we age, it’s essential to remain vigilant and protect ourselves from potential scams that may exploit our vulnerabilities. Unfortunately, older adults and retirees are often targeted by scammers who seek to take advantage of their trusting nature and financial stability. According to recent studies, these scams cost older Americans a staggering $28.3 billion each year. In this article, we will explore the top six money scams that victimize older adults, aiming to raise awareness and help protect our seniors.

1. Grandparent Scam:
One of the most common scams targeting older adults is the grandparent scam. Scammers pose as distressed family members, usually grandchildren, who claim to be in trouble and urgently need money. They exploit the emotional bond between grandparents and grandchildren, tricking them into wiring funds to help. It is crucial to verify the identity of the person asking for money by contacting other family members before taking any actions.

2. Sweepstakes/Lottery Scam:
Another prevalent scam that affects older adults is the sweepstakes or lottery scam. Scammers contact victims and inform them that they have won a large sum of money or a luxury prize. However, to claim their winnings, they must pay a fee or provide personal information. It’s important never to send money or share personal details with someone who claims that you’ve won something but demands payment or information upfront.

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3. Tech Support Scam:
Tech support scams mainly target older adults who may not be as tech-savvy as younger generations. Scammers typically pose as computer technicians who claim to have detected a virus on the victim’s computer. They convince the victim to provide remote access to their device, allowing the scammer to install malware or steal personal information. Remember that legitimate tech support companies would never contact you unsolicited, so exercise caution when sharing remote access.

4. Romance Scam:
Romance scams involve fraudsters creating fake online dating profiles to exploit vulnerable individuals, especially older adults who may be seeking companionship. These scammers often spend months building trust before asking for money or personal information. Be wary of individuals who ask for financial assistance or request gift cards, as genuine romantic partners would not have such intentions.

5. Investment/Financial Scam:
Given their financial stability, retirees are attractive targets for investment and financial scams. Scammers pose as financial advisors or offer too-good-to-be-true investment opportunities promising high returns. Always research and verify any investment opportunity or financial advisor before committing any funds. Cold calls or unsolicited emails should be treated with extreme caution, as reputable professionals generally do not operate in this manner.

6. Medicare/Health Insurance Fraud:
Scammers prey on older adults by posing as Medicare representatives or healthcare providers. They aim to obtain personal information, such as Social Security or Medicare numbers, to commit identity theft or fraudulent billing. Remember that Medicare representatives will never call or visit unexpectedly, so be cautious when asked to provide personal information over the phone.

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Protecting older adults and retirees from scams requires awareness, communication, and proactive measures. Remember, if something seems too good to be true, it probably is. Encourage open discussions about scams, educate your loved ones on common tactics, and remind them to never share personal or financial information without verifying the legitimacy of the request.

Maintaining the financial security and peace of mind of our older adults is a collective responsibility. By staying informed and spreading awareness, we can help prevent these scams and protect our loved ones from falling victim to financial exploitation.

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