Top 15 financial scams targeting older Americans — and what you can do to keep your money safe
Financial scams are among the most common crimes out there. And seniors are taking the brunt of it. The FBI Internet Crime Complaint Center (IC3) received more than 101,000 reports of scams and fraud against people ages 60 and older in 2023, causing seniors to lose over $3.4 billion. And those are just the reported cases: The FBI estimates that only about half of older Americans affected by fraud report it.
Seniors are being targeted in part because they own a large part of the nation’s wealth — about 72%, according to recent data from the Federal Reserve. But the scams being perpetrated are sophisticated enough to prey on everyone, no matter their age.
While it’s impossible to list every scam that’s out there, we’ve rounded up the most common peer-to-peer, impersonation and other scams on the rise. Once you become familiar with the various ways online fraudsters work, you may be better positioned to fend off the next attack — or better recognize a shady proposition.
3 common methods for scams
Common scams fall into one of three main types that generally depend on how you’re approached for your private and financial information, though a scam can cross into multiple categories, depending on how advanced the scheme:
Phishing or spoofing is a type of scam that includes sending emails designed to look as if they’re coming from legitimate sources. They often include links to "mirror" or cloned websites that can trick you into submitting your personally identifiable information (PII) — such as your name, Social Security number, addresses or bank account details.
Vishing involves calling or leaving voicemails claiming to be from legitimate financial or other companies. Adding to the scam is caller ID that appears to come from a known or trusted number. Answering or calling back puts you in touch with phony agents who talk you through revealing your personal and financial information, exposing you to fraud.
Smishing involves texting messages designed to sound as if they’re from reputable sources. They can entice you into clicking a shady link or “verifying your account” with information the scammers can then use to log in to your accounts.
Each of these scams uses sophisticated technology and tools to target people who are trusting, playing on your empathy or fear to get what they want. The best way to fight back is with awareness.
Impersonation scams
The anonymity of the internet gives scammers multiple ways to take advantage of vulnerable people, allowing these fraudsters to impersonate almost anyone to get their hands on your personal financial information. And they use multiple tools to do it.
Impersonation scams can be as simple as receiving a call, text or email to confirm your financial information or solve a problem, or as complicated as building a relationship with you over the course of a few months or anywhere in between — each with the goal of robbing you down the road.
The most important thing to remember is that no legitimate company, provider, financial institution or government agency will ask you to provide sensitive personal or financial details by text or email. For phone calls, tell the caller you will call them back at a verified customer support line to resolve any issue.
Stay vigilant and keep your money safe by looking out for these top scams.
????Government or financial institution impersonators
You get a call, email or text from someone claiming to be from a government agency, such as the IRS, Medicare or Social Security. Or maybe they say they’re calling from your bank, P2P account or credit card issuer. Either way, the person tells you there’s a problem — with your taxes, your next payment, your statement or a fine you’ll have to pay — and that you need to resolve it right away. In your panic to make it right, you trust who’s calling and give away personal or financial information the scammer can exploit to steal from you.
What to do
Never provide personal or financial information to any caller asking for it. Instead, hang up and reach out directly to the government agency, financial institution, P2P account or other company they claim to be calling from, using the verified number on their site or app.
????Widow and widower scams
Scammers are known to scan print and online obituaries looking for people who’ve recently lost a spouse or partner to strike up a friendship or romantic relationship when the survivor is most vulnerable. Using a method called catfishing, they might create a fake online persona to charm you out of money or manipulate you into giving up personal financial information.
What to do
Stay suspicious of the people you meet online, taking what they say with a grain of salt until you know for certain they are real people with your real interests at heart. Bring in family if you need the extra help to confirm their identity, and do not send money, share financial details or provide sensitive information with online “friends” at any point.
????"A loved one is in danger" and family scams
You’ll get a distressed text from a child, family member or friend, followed by a call from the police or a bail bondsman. The caller asks you to pay them immediately to keep your loved one out of prison. If a text, it may ask you to send money right away to help them.
With a similar scam, you answer the phone and the person on the line asks, “Do you know who this is?” If you guess a grandchild or family member, the caller pretends to be that person, and eventually asks for money.
Unfortunately for you, when you provide your payment information — or gift cards or a money transfer — it’s used to scam you out of money.
What to do
Do not provide your financial information, money transfers or any other type of payment to callers at the end of unsolicited calls. Instead, call your loved one — or other family members — back directly to check on them, after which you can confirm whether they need your help or not.
????Shipping company impersonators
You get a text or email from a shipping company like DHL, UPS or FedEx claiming you have an undelivered package due for reshipment. The notice includes a link that shows a redelivery fee for payment. You pay the fee, but you’ve actually handed money over to a scammer.
What to do
Shipping companies do not charge redelivery fees for undelivered packages, and so you can simply ignore the request. If you’d rather confirm, call the delivery company directly at its verified customer support line to ask about the invoice or pending deliveries.
????Technical support impersonators
You get a call from your internet provider claiming there’s a problem with your computer that needs fixing or requires a diagnostic test, but only if you give them access or click a link they send. You follow their directions and unwittingly allow a scammer remote access to your computer or the ability to download spyware or malware to collect your financial information the next time you log in to your accounts or trick you into providing sensitive information.
What to do
Do not respond to calls from people claiming to be from technical services, like your internet provider or software companies. To confirm whether there’s an issue, hang up and call back to a verified number on the company’s website.
????Investment and mortgage impersonators
A call comes in from a trusted bank or investment group offering you an opportunity to make more money. Or, you might even get a call from a bank offering you amazing terms to refinance your home. They may even send forms that appear to be legitimate, asking you to complete and return them with your personal and financial information.
What to do
As with all other scams, do not provide your personal or financial details to unexpected callers. If you’re not sure, call the company back at a verified customer support line on its website.
Peer-to-peer payment app scams
Peer-to-peer (P2P) payment apps like Paypal, Venmo and Zelle allow users to buy and sell products and services without exchanging credit card or bank account information. And they can be a secure way to exchange money.
Unfortunately, scammers have created quite a few ways to deceive users with these services. A quick Google search — either describing your situation or using the exact language in your communications — can often unearth the scam, along with steps as to how to report it.
Here are scams to look out for when buying and paying for items online.
????Accidental payment scams
You see an unexpected payment to your account and then a message from the sender saying they’ve accidentally sent you the money meant for someone else. It often comes with some kind of sob story about how they need you to return the money immediately. If you do, it’s likely the original payment came from a stolen account — which will soon be reported to the P2P app as fraud, leaving you on the hook to pay it back.
What to do
Do not reply or provide any information. Instead, report any mistaken payments or suspicious emails asking for payment directly to the app’s customer support team.
????Item-not-as-advertised scams
You use your P2P app to pay for an item, and either it doesn’t arrive or it’s not at all what was advertised.
What to do
Report the issue to the platform’s customer support team and contact the seller so that you have a record. For future online shopping, pay with a credit card for the protection issuers provide against disputed or fraudulent charges.
????Fake or return check scams
You’re notified that you’re “hired” for remote or contracting work and then asked to deposit a check, using your P2P account or money transfer to either forward money to another employee or purchase equipment for a home office through a provided site. When the check bounces or is reversed weeks later, you’re not only out the money you sent but also possibly subject to insufficient funds fees.
What to do
Take any unexpected offer of employment with a grain of salt, especially if it comes with payment before you start. Even if you’ve applied for a role, do your research to confirm an offer is valid and from a legitimate company. Never cash a suspicious check that comes with promises of reimbursement. If you’re not sure whether a check is real, take it to your local bank and ask a cashier to confirm it’s legitimate.
????‘Can I borrow your phone?’ scam
A stranger at a store or in a parking lot asks to borrow your mobile phone to call a friend or family member for help. After you hand over your phone, the stranger pretends to make a call while managing to drain cash from your unlocked P2P app.
What to do
It’s hard to say no to a stranger in need, but never let a stranger borrow your cellphone. Instead, you can suggest the person ask to use the store’s phone or escort them to a help desk, where a store clerk can make a call on their behalf.
????Fake invoice or refund scam
You get an invoice from PayPal, Amazon or another digital company for items you never purchased. The invoice includes a number for you to call for a refund. When you call, scammers ask for your bank account or credit card information to process the refund, using your financial information to scam you out of money.
What to do
If you receive an invoice from a seller, website or company that you don’t recognize or did not purchase items from, do not call the number provided. Instead, find a legitimate number for that business to call directly and confirm the issue.
Even if you think a transaction or sale is legitimate, record and keep all email and text conversations about a transaction, just in case you need to file a dispute with your credit card company later.
Other common scams to watch for
Obviously, not all scams fit into tidy boxes. Common fraud schemes on the rise that you may come across include these four designed to part you from your money.
????Charity scams
Donating to charitable causes and people in need is a noble act, and these scams prey on the very empathy behind your actions to steal your hard-earned money.
Charity scams can reach you by way of email, phone calls, social media pleas — even on the street from clipboard-carrying “representatives” — asking for your financial information to complete a pledge you might not remember making.
What to do
In this situation, hang up, sign out or walk away to avoid falling for this common scam. For future donations, research the charities or nonprofits before you send money. Resources for researching the legitimacy — including whether your gift is tax-deductible and how much of your donation is used to pay for administrative overhead — include:
Charity Navigator — charity-rating organization through which you can search by specific nonprofit or a cause, like “children’s hospital care”
CharityWatch — nonprofit backed by the American Institute of Philanthropy that’s dedicated to in-depth analyses on charities
Tax Exempt Organization Search — IRS tool for confirming an organization’s tax-exempt status and official filings
And when donating, always pay by credit card or check so that you can track your money in the event of fraud.
????Gift card scams
With this scam, you’re asked to buy a fraudster a gift card from a specific retailer or card issuer — like American Express, Amazon or Visa — sometimes with an offer to pay you more than the card costs. Or you might be asked to pay for an item, donation or other service with a gift card, and not a credit card or check.
In either case, you’re asked to share the gift card number and pin code over the phone or text, handing over all the scammer needs to drain the money you’ve put on the gift card. And because gift cards are not traceable, there’s no recourse if you don’t receive the item or service you’ve paid for.
What to do
Do not respond to gift card requests by phone, text or online. Adding to the sophistication of this scheme are scammers that monitor your social media for details that can trick you out of your gut feelings. For example, people report new bosses asking to send out gift cards as part of their job only to find that a scammer had seen them talking about a new job online and took advantage.
????Sweepstakes and lottery scams
You get a call or text that excitedly announces you’ve won a prize, raffle or cash. The person might say they’re from the government, or Amazon, or the name of an organization or company you’ve talked about online. But to get your reward, you need to provide your bank account details or pay shipping costs in advance. After you pay the upfront costs, you learn there never was any prize — and you’re out the money.
What to do
Like all other scams, your best action is to ignore the message and block the number from reaching out to you again.
????Robocall scams
You get a recorded call with an urgent message: Your warranty is expiring, or you must renew your insurance policy or take advantage of an investment opportunity, or a family member needs your help. Another variation starts with a simple question: “Can you hear me?”
By responding to the request, the scammer is able to record your answers as a voice imprint they can then use to authorize future charges or purchases.
What to do
Any recorded message you receive can be a robocall. Unless you know for certain who it’s from — say, a doctor office confirming your appointment or a missed call from an expected source — don’t respond. Instead, hang up and block the number from calling you again.
What to do if you suspect a financial scam
If you get a call, email or text from an unknown number or address, take caution — even if what you’re seeing or hearing isn’t a scam you’ve heard of. It’s always better to stay safe and do a little research before you take any action. If it turns out the message is real and there’s a problem you need to fix, you’ll have time to confirm next steps with your bank, institution or company in question.
It’s a good idea to stay apprised of developing scams — just as you’re doing here. Educational forums like Reddit’s r/scams board and organizations like the Consumer Financial Protection Bureau keep on top of people’s experiences with scams so that you can stay alert to new fraud schemes.
One way to cut down on exposure to future scams is adding your number to the National Do Not Call Registry, as well as reporting and blocking unknown senders from your inbox. Open up your email and look for “Block Sender” or “Block Contact,” or Google your specific email provider for directions. To block callers, open your phone app, go to your settings and look for “Block This Caller” or “Silence Unknown Callers.”
Taking these steps won’t stop scammers completely, but reporting spam and scammers can help your wireless provider and email service block those users for everyone.
Dig deeper: How to block and unblock email addresses in AOL Mail
What to do if you’re the victim of a financial scam
When you’re the victim of a scam, it’s often an emotional experience that can leave you feeling vulnerable and exposed. You might be angry or feel guilty, scared and embarrassed.
The reality is that even the most prepared and careful people are vulnerable to fraud. And the more sophisticated the scheme, the more difficult it is to recognize you’re being scammed.
Breaking through the emotions can be hard, but it’s important to put a plan in action as soon as you can to more quickly get on the road to recovery, help authorities punish the fraudsters and keep others from falling to the same scam.
Here are general steps to follow if you — or somebody you love — is the victim of a financial scam.
Step 1: Report the crime
Start by contacting the fraud hotline or customer support at your bank or credit union for any accounts involved in the scam. You can also call any payment app or wire transfer company used for the scam. A support rep can walk you through the steps of freezing or canceling related debit and credit cards — and, depending on the scam, starting the process of reversing fraudulent charges while they conduct their investigation.
Next, contact your local police to file an official report. A report creates a paper trail to help in your recovery, and it could prompt the police to gather details and warn others in your community.
After you’ve reported the crime to your financial institutions and the authorities, create a fraud alert with the main credit reporting bureaus. Get started here:
Alerts tell credit companies that you’ve been targeted and can freeze future extensions of credit without your permission.
Finally, it’s a good idea to report the scam with wider state and federal government agencies at the following links:
FBI Internet Crime Complaint Center — The FBI collects reports of cyber-enabled crime, including schemes that target seniors and retirees ages 60 and older.
FTC Fraud Report — Use the reporting assistant to report common phone, online, text and other scams.
Your state’s consumer protection office — Search for your state’s consumer support to report scams, fraud and other complaints. Many states offer a toll-free hotline to speak to a human for help.
????I am a family member or caretaker of a senior who’s been scammed. What should I do?
If you’re the loved one of somebody who’s been a victim of elder fraud, call the National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311) weekdays from 10 a.m. to 6 p.m. ET. Run by the Department of Justice, the hotline provides nonjudgmental support to help you navigate the process of reporting suspected fraud and even put you in touch with a case manager and other resources, should you need it.
Also take advantage of your local adult protective services. The National Adult Protective Services Association (NAPSA) publishes a directory for reporting fraud and abuse targeted at seniors or retirees in your city or state. Your local agency might also provide local resources to help in your recovery — including mental health services designed to help vulnerable seniors through the process.
Step 2: Protect yourself from future scams
Here are steps you can take in the wake of fraud to protect your finances from future scams and better position you for catching issues early:
Run a scan of your computer. No matter whether a scammer gained access to your computer, it’s a good move to run a full scan of your computer for malware, viruses and cyber criminality. AOL partners with AppGuard, Norton, MalwareBytes and other top brands to keep your devices safe today and into the future. You might already have access to protection through your computer or device’s settings.
Change all of your passwords. Even if the scammer didn’t gain access to your computer, take the opportunity to change the passwords for all of your accounts, just to be safe. For more secure passwords, consider a password manager like LastPass (which also comes with LifeLock ID theft protection).
Follow up with your account holders to assist with their investigation. Offer to send them the FTC and police reports and make sure any fraudulent charges have been reversed from your account.
Set up and customize account alerts. For new and old accounts, set up alerts with your bank or financial institution that can flag you into unusual activity, credit and debit card use and low account balances — giving you plenty of heads-up for fixing issues. Go to your bank’s online banking portal or banking app and look for account alerts.
Step 3: Let your loved ones know what happened
This step can be the hardest. Often we’re too embarrassed or don’t want to burden our family with financial issues. But it’s important to get help when you go through something like this — even if it’s just emotional support.
If someone broke into your home or stole your car, you’d want to reach out. Digital and financial fraud is no different, and it can take the same mental and emotional toll.
By sharing your story, you’re also spreading information about the scam that can help others avoid a similar situation in the future. And by allowing them to help in your reporting and recovery, you’re showing them what to do should they ever fall victim to a financial scam themselves.
FAQ: Keeping your finances and digital money management safe
Learn more about how to keep your money safe from scams, fraud and cyber crime.
Is it worth it to pay for ID theft protection or account monitoring services?
It depends on your needs and budget. AOL partners with Experian CreditCenter, AppGuard and Norton Online Security, among other products, that protect your identity, safety and security — many offering free trials for you to test whether it's right for you.
But you might not have to pay for credit monitoring — CreditWise from Capital One is a free service that monitors your personal information online and on the dark web, alerting you if it finds your bank account details, passwords, Social Security number or email address have been stolen or compromised.
Are there services I can use to help me with my finances if I don’t have a family member I can trust?
Yes. Look into assigning a fiduciary to manage your finances alongside you. A professional, licensed fiduciary is required by law to make decisions with your best interests in mind and only to manage your finances in a way that you’ve agreed on. Learn more about how to find a trusted retirement advisor, including looking for — and, importantly, vetting — a fiduciary.
Sources
Distribution of Household Wealth in the U.S. since 1989, Federal Reserve. Accessed July 30, 2024.
Elder Fraud, in Focus, FBI. Accessed July 30, 2024.
About the writer
Heather Petty is a finance writer who specializes in consumer and business banking, personal and home lending, debt management and saving money. After falling victim to a disreputable mortgage broker when buying her first home, Heather set on a mission to help people avoid similar experiences when managing their own finances. Her expertise and analysis has been featured on MSN, Nasdaq, Credit.com and Finder, among other financial publications. When she's not breaking down the complexities of finance, she's a young adult mystery writer of an internationally acclaimed series — and counting.