Protecting Seniors from Financial Scams: What You Need to Know
Older adults are facing rising threats from financial scams as we lean more and more into a digital existence. Scammers have become more sophisticated, and they target seniors with schemes that can cost thousands of dollars and erode a lifetime of hard-earned savings.
The FBI’s 2024 Elder Fraud Report noted that Americans over age 60 lost over $4.8 billion to scams in 2024.
“September, which spotlights both Life Insurance Awareness and the ongoing protection of retirees, is a timely moment to raise awareness about these dangers,” says Robert Cavanagh, Senior Vice President, Investments at David Lerner Associates, Inc. “Understanding the most common types of scams can help you protect yourself or your loved ones from financial harm.”
1.Recognizing the Threat of Impersonation Scams
One of the most frequent and damaging types of fraud involves scammers impersonating government agencies like the IRS, Social Security Administration, or Medicare.
According to the FTC, imposter scams were the most reported scam type in 2024. Government imposter scams caused $789 million in losses in 2024. An increase of $171 million from the previous year.
Imposters may call or email pretending to need personal information or claim you owe money. If someone contacts you claiming to be from a government agency and demands immediate payment or threatens arrest, hang up or delete the message. Government agencies never request sensitive information or payments this way. Instead, contact the agency directly using verified numbers or websites.
Remaining skeptical of unsolicited communications is essential. Talk to a trusted family member or investment counselor before taking any action.
2.Be Wary of Sweepstakes and Lottery Claims
Another common tactic is to inform seniors they’ve won a sweepstakes or lottery—but there’s a catch. Scammers request “processing fees,” taxes, or bank information to release the prize.
Any request for payment in exchange for a prize is a red flag. These scams often rely on building a sense of excitement and urgency, which can lead to rash decisions.
Encourage older family members to pause and verify any such communications. Remind them that real lotteries never ask winners to send money upfront.
3.Guard Against Robocalls & Phone Scams
Robocalls remain one of the most prevalent ways scammers reach seniors. These automated messages might promote fake health care products, warranty extensions, or pretend to be law enforcement demanding money.
Even if the caller ID looks legitimate, scammers can spoof numbers. If a message prompts you to press a number or return a call, it’s safest to ignore it.
The best defense is to use call-blocking tools; register your number on the National Do Not Call Registry and avoid sharing any information over the phone with unknown contacts.
4.Don’t Fall for Tech Support Scams
Many older adults are targeted with fake tech support scams. These begin with a popup or call claiming your device has a virus, urging you to call a number or download software.
Once contacted, the scammer might request remote access to your computer or ask for payment to fix nonexistent problems. This not only leads to financial loss but can compromise your device and personal data.
Legitimate tech companies will never contact you unsolicited to report issues. If you’re unsure, reach out to a trusted family member or local computer repair service.
5.Stay Vigilant About the Grandparent Scam
This emotionally manipulative scam preys on love and concern. A caller pretends to be a grandchild in distress, often needing bail money or help after an accident, and begs for secrecy.
If you receive such a call, resist the urge to act immediately. Contact other family members to verify the situation. Scammers rely on catching people off-guard and using emotion to bypass logic.
You can also establish a family code word to confirm identities during real emergencies.
Conclusion
As scams targeting older adults become more prevalent and complex, awareness remains the first line of defense. By recognizing common tactics from government impersonation to emotional manipulation, you can better safeguard your finances and peace of mind.
At David Lerner Associates, we’re committed to educating and empowering you with the tools you need to make informed decisions. If you’re unsure about a suspicious communication or want guidance on protecting your assets, don’t hesitate to speak with an investment counselor.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.