Older adults especially should be aware of fraud schemes for the following reasons¹:

• Older citizens are most likely to have a “nest egg,” to own their home, and/or to have excellent credit—all of which make them attractive to con artists.
• People who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting. Con artists exploit these traits, knowing that it is difficult for these individuals to say “no” or just hang up the telephone.
• Older adults are less likely to report a fraud because they don’t know who to report it to, are too ashamed at having been scammed, or don’t know they have been scammed.
• When an elderly victim does report the crime, they often make poor witnesses. Con artists know the effects of age on memory, and they are counting on elderly victims not being able to supply enough detailed information to investigators. In addition, the victims’ realization that they have been swindled may take weeks—or more likely, months—after contact with the fraudster. This extended time frame makes it even more difficult to remember details from the events.
• Older citizens are more interested in and susceptible to the products that the con artist might be selling.

According to the National Council on Aging (NCOA), the top 3 scams targeting seniors include the following²:

1. Medicare — Fraudsters pose as Medicare representatives to get seniors to give them their personal information, such as their Medicare identification number. The fraudster uses this information to bill Medicare for fraudulent services and then pockets the money.
2. Counterfeit Prescription Drugs — As prices for prescription drugs increase, seniors look on the internet to find cheaper prices for their medications. Fraudsters are aware of this and set up websites that advertise cheap prescription drugs which are usually counterfeit.
3. Funerals — Fraudsters use obituaries to find out information about the deceased in attempts to extort money from family members or grieving spouses. They claim the deceased has an outstanding debt that must be paid immediately. In another scheme, dishonest funeral directors might try to deceive the elderly by capitalizing on their unfamiliarity of funeral costs and sell them unnecessary services.

• Older Americans lose $27.4 billion each year to financial scams and abuse.

• 5 million cases of elder fraud occur in the United States annually.6

• Over 90% of all reported elder abuse is committed by the older person’s own family members, most often their adult children, followed by grandchildren, nieces, and nephews, and others.³

• Declining cognition is associated with a 33% increase in scam susceptibility, but even healthy older adults can fall victim.

• In 2015 there were over 5,800 reports of seniors being scammed via private messages, resulting in a loss of $33 million. This number increased to over 25,000 in 2021 alone, resulting in a loss of over $201 million. 7

• The median loss for romance fraud victims in their 20s was $770. People in their 50s reported losing twice as much. The losses reached $3,000 for victims in their 60s and $6,450 for those in their 70s. 7

• Debit card scams make up 32.9% of elder fraud cases, with credit card and bank deposit account scams making up 11.6% and 10%, respectively.6

• The National Council on Aging (NCOA) has stated in a recent study that Michigan alone accounts for $718,124,389 in losses due to elder fraud, approximately 9.19% of elders facing some sort of financial abuse, with the average amount lost per case being more than $34,000.⁶

If you know or care for an older adult, here are some additional warning signs that may indicate they are the victim of financial abuse⁴:

• There are unusual recent changes in the person’s accounts, including atypical withdrawals, new person(s) added, or sudden use of a senior’s ATM or credit card.
• The senior suddenly appears confused, unkempt, and afraid.
• Utility, rent, mortgage, medical, or other essential bills are unpaid despite adequate income.
• A caregiver will not allow others access to the senior.
• There are piled up sweepstakes mailings, magazine subscriptions, or “free gifts,” which means they may be on “sucker lists.”

The Adult Protective Services (APS) program is the “911” for elder abuse. Anyone who suspects elder abuse, neglect, or exploitation should make a report. The reporter’s identity is protected. APS services are confidential, so the reporter may not be able to learn the outcome of the case. APS respects the right of older persons to make their own decisions and to live their lives on their own terms. In cases of cognitive impairment, however, APS will take steps to protect the older person to the degree possible.

8 tips to protect yourself⁵

1. Be aware that you are at risk from strangers—and from those closest to you. 

Over 90% of all reported elder abuse is committed by the older person’s own family members, most often their adult children, followed by grandchildren, nieces and nephews, and others. Common tactics include depleting a joint checking account, promising but not delivering care in exchange for money or property, outright theft, and other forms of abuse, including physical abuse, threats, intimidation, and neglect of basic care needs.

Everyone is at risk of financial abuse, even people without high incomes or assets. Understand the top 10 most common scams targeting seniors, so you can spot one before it’s too late.

2. Don’t isolate yourself—stay involved!

Isolation is a huge risk factor for elder abuse. Most family violence only occurs behind closed doors, and elder abuse is no exception. Some older people self-isolate by withdrawing from the larger community. Others are isolated because they lose the ability to drive, see, or walk about on their own. Some seniors fear being victimized by purse snatchings and muggings if they venture out. Visit the Eldercare Locator to find services nearby that can help you stay active. Or contact your local senior center to get involved.

3. Always tell solicitors: “I never buy from (or give to) anyone who calls or visits me unannounced. Send me something in writing.”

Don’t buy from an unfamiliar company and always ask for and wait until you receive written material about any offer or charity. Neighborhood children you know who are selling Girl Scout cookies or school fundraising items may be an exception, but a good rule of thumb is to never donate if it requires you to write your credit card information on any forms.

It’s also good practice to obtain a salesperson’s name, business identity, telephone number, street address, mailing address, and business license number before you transact business. And always take your time in making a decision.

4. Shred all receipts with your credit card number

Identity theft is a huge business. To protect yourself, invest in—and use—a paper shredder. Monitor your bank and credit card statements and never give out personal information over the phone to someone who initiates the contact with you.

5. Sign up for the “Do Not Call” list and take yourself off multiple mailing lists

Visit Do Not Call to stop telemarketers from contacting you.

Be careful with your mail. Do not let incoming mail sit in your mailbox for a long time. When sending out sensitive mail, consider dropping it off at a secure collection box or directly at the post office. You also can regularly monitor your credit ratings and check on any unusual or incorrect information at AnnualCreditReport.

6. Use direct deposit for benefit checks to prevent checks from being stolen from the mailbox

Using direct deposit ensures that checks go right into your accounts and are protected. Clever scammers or even scrupulous loved ones have been known to steal benefits checks right out of mailboxes or from seniors’ homes if they are laying around.

7. Never give your credit card, banking, Social Security, Medicare, or other personal information over the phone unless you initiated the call

Misuse of Medicare dollars is one of the largest scams involving seniors. Common schemes include billing for services never delivered and selling unneeded devices or services to beneficiaries.  Be wary of salespeople trying to sell you something they claim will be paid for by Medicare.

Review your Medicare statements to be sure you have in fact received the services billed, and report suspicious activities to 1-800-MEDICARE.

8. Be skeptical of all unsolicited offers and thoroughly do your research

Be an informed consumer. Take the time to call and shop around before making a purchase. Take a friend with you who may offer some perspective to help you make difficult decisions.

Also, carefully read all contracts and purchasing agreements before signing and make certain that all of your requirements have been put in writing. Understand all contract cancellation and refund terms. As a general rule governing all of your interactions as a consumer, do not allow yourself to be pressured into making purchases, signing contracts, or committing funds. These decisions are yours and yours alone.