Scams against the elderly are on the rise. The FBI says individuals aged 60 and older lost $3.4 billion to scammers in 2023, an increase of 11% compared to the previous year. Scammers tend to target the elderly more than other age groups. Help your residents recognize new senior scams to avoid them falling victim to scammers.
What Are the Most Common Senior Scams?
The FBI has identified the most common types of elder fraud as being:
- Tech support scams. A scammer poses as a tech support worker and claims the victim’s computer has a virus or other issue but that they can fix it.
- Personal data breaches. Seniors are vulnerable to identity theft if their personal information is exposed.
- Confidence and romance scams. The scammer attempts to befriend or romance victims to gain their trust and convince them to send money.
- Non-delivery scams. The scammer does not deliver items the victim has paid for.
- Investment scams. Scammers persuade victims to invest money using false promises.
How Are Senior Scams Changing?
While savvy seniors may be aware of some of the most common scams, they may still fall victim to new scams or old scams with new twists. Scammers are constantly trying new ploys. Here are some of the latest:
- Gold bars. In recent years, scammers have often asked victims to send money in the form of gift cards. Now that retailers and seniors are increasingly watchful for gift card scams, crooks are asking seniors for gold bars. In this scam, scammers convince victims that their assets are compromised and that they need to convert their savings to gold bars for safekeeping. The scammers collect the gold bars and are never seen again. According to Channel 7 Eyewitness News, a widower in Indiana lost $80,000 to such a scam and a woman in New York says she lost $700,000.
- Deepfake scams. With modern deepfake technology, it’s easy to create fake videos that appear to be a recording of someone a senior knows or trusts. The Guardian says scammers used deepfake videos of celebrities to carry out crypto scams, while Variety says a French woman lost $850,000 in a romance scam in which someone posed as Brad Pitt using AI-generated images.
- Voice clone scams. In the grandparent scam, a scammer poses as the victim’s grandchild and requests money to deal with an emergency situation, such as an arrest or kidnapping. Now, the FCC says scammers are also using voice cloning technology to mimic the grandchild’s voice, in addition to incorporating personal information found through social media to make the con more convincing.
- Wrong number scams. Everyone has received a “wrong number” call or text at some point. These interactions are usually innocuous, but scammers have been staging them as a way to start a conversation that eventually leads to an investment or romance scam.
How to Raise Awareness at Your Adult Residential Care Facility
Considering how common senior scams have become, it’s reasonable to assume that many of your residents will be targets at some point. Help your residents avoid falling victim by raising awareness.
- Make education an ongoing priority. Don’t assume that your residents already know how to avoid scams. Since scammers are constantly changing their tactics, ongoing education is critical. Put up posters, send emails, encourage conversations, and hold meetings to educate your residents about scams. Consider inviting an expert (such as a local law enforcement officer) to your facility to talk to residents.
- Share resources. Many of the resources to help seniors avoid scams are free. Check out what the Consumer Financial Protection Bureau, the National Council on Aging, the S. Department of Justice, and the FTC have to offer.
- Encourage residents to come to you for help. Scammers often try to pressure victims into acting quickly. Let your residents know they can come to you if they are unsure if a contact is legitimate. Encourage them to always wait and talk the request over with someone else before acting.
- Pay attention to overall wellbeing. The University of Southern California says older adults who are lonely are more vulnerable to fraud. It makes sense – if you’re desperate for companionship, you’re more likely to carry on a conversation with a scammer. The University of Florida says reduced brain health, cognition, and social and emotional capacities also make seniors vulnerable. Identify residents who may be at risk and provide extra support.
Senior scams are often financially and emotionally devastating, but caregivers are in a good position to help seniors steer clear of these terrible scenarios.
Tangram provides insurance for residential care facilities through the Personal Care & Assisted Living Insurance Center (PCALIC). Learn more.
