If you watch the nightly news, it can seem like a new fraud scheme aimed at seniors appears every week. Scammers are becoming more sophisticated, combining technology and psychological tactics to target older adults, making it harder for families and caregivers to stay ahead of them.
Common schemes used against seniors include:
- Phone calls or emails demanding immediate payment for fabricated fees or fines
- Overcharging for medical care or billing for services that were never provided
- Prepaid funeral or cemetery plot scams
- Recurring credit card charges for subscriptions or services that were supposed to be canceled
How widespread is elder fraud, and what practical steps can seniors and their families take to reduce the risk?
A costly and all-too-common crime
Elder fraud is a serious form of financial abuse. According to data compiled by elder protection organizations, financial exploitation is the most common form of elder abuse. Research from the Senior Investor Protection Resource Center estimates that one in five people over age 65 have experienced financial fraud or exploitation, with total losses reaching billions of dollars each year.
Between 2013 and 2017, banks and financial institutions filed approximately 180,000 Suspicious Activity Reports tied to accounts held by older adults, covering more than $6 billion in assets believed to have been targeted. Over that period, elder financial exploitation increased markedly.
On an individual level, the average loss to fraud for people aged 70 to 79 was tens of thousands of dollars. Losses are often larger when the perpetrator is someone the senior knows: family members, friends, or trusted acquaintances can cause particularly devastating financial harm.
>> Related: How to Recognize and Address Elder Abuse
Protecting seniors from elder fraud
Whether the abuser is a stranger or someone close, elder fraud can leave long-term financial and emotional damage. To reduce the risk, families and caregivers can take several proactive steps:
- Hold a family meeting with the senior to review all financial accounts, determine who has access, and clarify how bills are verified and paid. Discuss how frequently accounts are monitored for suspicious activity.
- Choose a trusted family member or friend to compile a list of monthly income and expenses so there is a clear picture of regular financial flows.
- Set up a regular process to monitor bank accounts and credit card statements. Periodically obtain and review the senior’s credit report to spot unfamiliar accounts or inquiries.
- Use online banking tools to establish automatic payments for recurring bills such as insurance, mortgage or rent, and utilities to reduce missed payments and sudden changes.
- Consider consolidating financial accounts to simplify management and close unused credit cards to reduce exposure.
- Establish a durable power of attorney for finances so a trusted person can act if the senior becomes unable to manage their accounts.
>> Related: Financial Caregiving: An Important Topic No One Wants to Discuss
What to do if you suspect fraud
Even with precautions, scammers find new ways to exploit seniors. If you suspect fraud, act quickly to limit harm:
- Contact the bank or financial institution immediately to report suspicious transactions and request holds or freezes if appropriate.
- Report the situation to your local adult protective services (APS) agency so professionals can investigate and provide support. You can find your local APS contact information through the Eldercare Locator or by phone.
- File a complaint with the Federal Trade Commission to report scams and help track ongoing fraud trends.
There are many resources to learn more about preventing and responding to elder fraud, including materials produced by consumer protection agencies and public health organizations. Staying informed, maintaining open communication with older loved ones, and putting simple safeguards in place can significantly reduce the risk of financial exploitation.