Keep your Golden Years golden: Tips to prevent elder fraud

Linda Fisher

By Linda Fisher

Each year, up to 20% of older Americans become victims of elder fraud, a type of financial exploitation that explicitly targets people 60 years and older. According to the FBI, total losses from elder fraud scams rose 11% in 2023 to more than $3.4 billion.

For individuals living off retirement income, this type of loss can significantly disrupt quality of life, robbing people of their golden years.

Though older individuals are typically targeted for elder fraud scams, there are several ways that seniors, their family members and caregivers can prevent elder fraud abuse.

Stay up to speed on scams

While scams are constantly evolving, it is important to know what tricks fraudsters have on rotation in case you, a family member or client is on the receiving end. In 2023, the most common scams that caused financial losses to seniors included the following:

• Government impersonation scams in which a fraudster, posing as an IRS, Social Security or Medicare employee, says that the person has unpaid taxes or is going to lose their Social Security or Medicare benefits if they do not provide personal identifying information. This information is used to commit identity theft.

• Sweepstakes and lottery scams in which a scammer claims the individual has won something and needs to send money to cover supposed taxes or processing fees.

• Robocalls and phone scams in which a scammer, using phone number spoofing to make it appear as if the call is coming from a reputable organization, claims the individual needs to pay by a certain deadline to renew a warranty or prevent an impending lawsuit.

• Computer tech support scams in which a fraudster plants a pop-up message on an individual’s computer or phone, telling them their device needs to be fixed. When they call the indicated support number, the scammer may either request remote access to the person’s computer and/or demand they pay a fee to have it repaired.

• Grandparent scams in which scammers call a grandparent and say something like: “Hi, Grandma, do you know who this is?” When the grandparent guesses the name of the grandchild the scammer most sounds like, the scammer secures their trust and asks for money to resolve an urgent financial problem.

Stay proactive to prevent elder fraud

• Stay educated: Resources such as the FTC and FCC websites, as well as your bank’s website, can be used to keep up on new forms of fraud and ways to avoid them. For instance, First Interstate Bank has several resources available to keep people in the know.

• Monitor accounts: Regularly check bank statements and account activity for new or unusual transactions.

• Communicate: Have regular and open conversations with trusted family members about financial decisions.

• Report suspicious activity: Immediately report any suspicious emails, texts, calls or app requests to your bank and local authorities.

• Give it time: If someone calls urgently requesting cash or a money transfer, even if their phone number appears to be correct, tell them you will call them back, and hang up.

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Keep your Golden Years golden: Tips to prevent elder fraud