Safety and Protection

Elder Fraud is On the Rise: What You Need to Know

Erin Palmer

January 24, 2025

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Here is a staggering statistic every senior should know: scammers steal more than $3 billion a year from senior citizens, according to data from the FBI. Even worse, those numbers have been increasing each year.

Understanding common scams that target seniors and taking action to protect yourself and your loved ones is the only way to stay safe. 

Read this article, share it with your friends, talk to your family, and take steps to keep your money safe.

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Romance Scams

Online dating is increasingly common. When emotions are involved, it’s much easier to miss red flags and fall for fraudulent activities. 

Scammers set up fake profiles and take time to get you to trust them. They will be affectionate, caring, and make you feel they are your perfect match. 

Often, they will claim to work in an industry that has them travel outside of the country, possibly in the military or on an oil rig. That makes it feasible to avoid meeting in person and it is usually how they will eventually ask for money. They might claim to be widowed, and often post their photos on the same day on social media.

 

Here are some red flags to look for:

  • The person you’re dating never meets you in-person
  • The person moves very quickly and pays you a lot of attention
  • The person asks you for money, claiming a sudden emergency
  • The person asks for your bank account details

 

Follow these tips to avoid romance scams:

  • Do not share personal details online that can help someone get familiar with you 
  • Research the name and photos of anyone you meet online to see if they are legitimate; a reverse image search can help determine if the photos have been used elsewhere
  • NEVER send money or receive money from people you meet online and do not really know
  • If the person seems too good to be true, trust your gut

Investment Scams

Investment scams are one of the costliest types of fraud that impact the elder community, according to the FBI. These scams trick you into “investing” money for “guaranteed” returns.

Let’s look at some red flags for investment scams:

  • Someone asks you to invest money for a guaranteed return
  • You’re asked to bring in additional investors to make more money or get a return on your investment
  • Your investment is used to pay previous investors

 

These are some things to keep in mind before making an investment:

  • Research any person or organization you are considering investing with
  • Do not be fooled by promises of guaranteed returns
  • Never rush into making an investment
  • If someone tells you to keep the opportunity secret, it’s likely a scam
  • Talk to your trusted financial institution if you are concerned about an opportunity 

Business Imposter Scams

A scary truth about scammers is they are experts at fooling you. A phone call from a number you recognize? A text from your financial institution? An email from a business you patronize? It might not be from them at all, it could be a spoofed phone number. Scammers can make it look real even though it is not.

It’s crucial to always be on guard, because you can bet that fraudsters don’t quit. Any text, email, phone call, or website link has the potential to be fraudulent. 

It might sound exhausting, but the truth is a little extra mindfulness can save you from losing your money. Stop and think to stay safe.

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Consider these red flags for business imposter scams:

  • A sudden text that claims you made a purchase or took out funds that you didn’t and has a link for you to check the transaction
  • Misspelled URLs for websites or awkwardly worded emails
  • A caller trying to get you to take urgent action or using scare tactics
  • Any call, text, or email that asks for personal information like bank details, social security number, or passwords/PINs

 

Here are tips to avoid falling for business imposter scams:

  • Keep your fraud radar on at all times
  • Do not engage with any text, call or email that seems suspicious
  • Do not click unknown links
  • Hang up on unexpected phone calls
  • Reach out to a company directly using their verified contact information from their website
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Contest/Prize/Lottery Scams

Winning a life-changing amount of money is a dream most people share, making it perfect bait for scammers to use. These scammers will email, call, or send a letter that claims you won a prize, like a car, iPad, or large sum of money.

Here’s the catch: you have to pay or provide your financial details to get the “prize.” The scammers will make it seem logical in several ways, like saying you have to pay taxes before the prize can be rewarded or give access to your account so the large deposit can be made.

Here are red flags for a lottery or sweepstakes scam:

  • You are told you won a prize even though you didn’t enter anything
  • You are asked to pay or provide personal financial information
  • The scammer pretends to be from the government or an organization you recognize, like Publisher’s Clearing House
  • You are pressured to act fast and not tell anyone about your prize until the money is in your account

 

 Follow these tips to avoid a lottery or contest scam:

 

  • If you’re told you were automatically entered into a contest because you made payments on time or have good credit, it’s likely fraudulent

 

  • If you get an unexpected text, letter, or email claiming you won a contest you didn’t enter, do not click the link or call the phone numbers
  • Remember real sweepstakes won’t ask you to pay to enter or pay taxes ahead of time

 

  • Fraudsters often ask for money in ways that make it difficult or impossible to return, like wiring funds, cashier’s checks, gift cards, usings apps like Zelle or Cash app, or asking you to make deposits into cryptocurrency accounts

Important Things to Know About Elder Fraud/Scams

Please know falling for a scam does not make you stupid or naïve. It can happen to anyone. Though it is a difficult thing to go through, it is nothing to be ashamed of, and you should talk to someone. 

With endless time and technology on their sides, fraudsters have everything they need to deceive you. Even if you are suspicious, they will try to turn it around by saying something like “I would never scam you, I was almost scammed once.”

You have to keep your guard up. Know that celebrities like Elon Musk or Bill Gates will never reach out to you personally for an investment or a favor. Your financial institution or a government entity will not ask you to put money into bitcoin or cryptocurrency.

The scams can be so elaborate. Scammers might plagiarize letterhead from a legitimate construction company to get you to pay deposits for work that will never be done. 

There are even scams to try to get you to not trust your own financial institutions. They claim they need your help to find someone at the company who is stealing money, meanwhile they are stealing your money themselves.

Those cashier’s checks or gift cards you’re being told to send is money you won’t get back, so it is crucial to stay alert. 

A mature couple looking at a tablet
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What to Do if Elder Fraud Happens to You

If you’ve been a victim of a scam or are unsure, reach out to your financial institution and law enforcement right away to report it. 

Sometimes people are reluctant to admit they’ve been scammed, out of embarrassment or simply because they feel like there’s still a chance it’s legitimate.

Please keep in mind, aside from losing money, many scams make you a part of illegal activity as well. Moving money for fraudsters is part of money laundering that can be part of human trafficking, drug operations, and other criminal activities. 

You can be liable if you participate, even if you don’t know the big picture of illegal activity. Sending and receiving money from people you don’t personally know is likely a part of money laundering. 

If your financial institution asks questions about unusual activity on your account, make sure to be honest. They can’t help you if they don’t have the facts. 

Talk with your family members about potential scams, even if it is uncomfortable. They won’t judge if you’re honest, they want to help you.

You work your whole life to get to where you are. Don’t let fraudsters take what’s yours. 

A mature couple drinking coffee looking at a laptop

Suncoast members, if you have been the victim of a scam, please send an email to mailto:abuse@suncoastcreditunion.com. If you are unsure and need help, please stop by a branch or call us at 813-621-7511.

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