Scams that Prey on the Elderly

Editor's Note: The following is an excerpt from an article by Miriam Cross, Associate Editor of Kiplinger's Persoanl Finance, origianlly posted in November 2019. Use the link at the bottom to read Cross' full article.

Many scams are universal, from the IRS imposter who calls and threatens to arrest you if you don’t pay your taxes, to phishing emails that trick you into sending sensitive data or downloading malware onto your computer. But some types of fraud target older adults specifically or affect them disproportionately. Older adults may fall for certain scams because they are in the habit of answering calls from unknown callers, open junk mail rather than tossing it in the trash, or are not as practiced with the privacy settings on social media as younger generations.

“Older adults make great targets because they have accumulated assets over time and are living off their savings,” says Larry Santucci, who coauthored a report about elder financial victimization for the Federal Reserve Bank of Philadelphia. “Some are also very lonely or socially isolated, which makes them susceptible to exploitation.” Moreover, cognitive decline—which hampers your ability to gauge risk or sense that something is awry—starts seeping in as early as your 50s. It may lead to diminished financial capacity, compromising your ability to handle your own money.

Here are six scams that you and your parents should watch out for. (Click on the link below to read Chase's complete description and advice):

1. Sweepstakes or Lottery
   Even if the contest carries a legitimate name, stay away from schemes that require you to pay to claim your prize.
   
   
2. Tech Support
   Seek tech support only from the contact information provided with your devices.
   
   
3. "Grandchild" in Need
   Hang up and call your grandchild or an in-the-know relative to check in.
   
   
4. Romance
   The seducer may spend weeks or months building a relationship over phone and e-mail, then ask for money—perhaps to help him or her travel to you or to deal with medical issues.
   
   
5. Social Security
   If you’re not sure whether a call is legitimate, don’t rely on your caller ID; hang up and call 800-772-1213 to speak with a real representative.
   
   
6. Natural Disasters and Contractors
   Ignore [the offers of fake contractors] and search for contractors on your own.
   

See the full details of Chase's comments on these scams.