7 Senior Citizen Scam Statistics You Need To Know [Infographic]

Scammers cheat seniors out of approximately $2.9 billion annually, according to the Senate Special Committee on Aging. No one is exempt from being a potential target of a scammer, and many con artists prey upon seniors who are well-educated and have above-average incomes. They use sophisticated, convincing sales pitches that sound legitimate, making it easy for anyone to become a target.

Being the victim of a scam can be detrimental to seniors’ mental health, making them feel helpless, embarrassed, anxious, depressed, fearful, or distrusting of others. These feelings can affect seniors’ physical health as well, so it’s important to take care of yourself if it happens to you.

By being informed about common scams and taking steps to protect yourself from fraudsters, you can avoid becoming a victim.

Scams by the Numbers

1. In 2023, Adults 60 and Older Lost Over $1.9 Billion to Fraud                                 

The year 2023 saw a staggering rise in financial losses among older adults due to fraud, with the Federal Trade Commission reporting that individuals aged 60 and older collectively lost more than $1.9 billion. 

This alarming figure highlights the vulnerability of seniors to various types of scams, ranging from digital phishing schemes to more traditional phone scams. 

2. In 2023, the Median Loss for Adults Aged 80+ Was $1,450

For adults aged 80 and over, the median financial loss from fraud was approximately $1,450 in 2023. To put this in perspective, seniors’ median loss is four times that of individuals in their twenties and thirties.

3. Credit Card Fraud Is the Most Common Form of Identity Theft for Adults Aged 70-79

Among seniors aged 70 to 79 who fall victim to identity theft, credit card fraud stands out as the most frequently reported type. 

This often includes unauthorized charges, fraudulent applications for new cards, and other forms of financial exploitation through stolen credit information. 

Given that many older adults may not closely monitor their accounts or recognize unfamiliar charges, they are particularly susceptible to this type of fraud. 

4. Business Imposters Are the #1 Reported Risk for Fraud Among Adults Aged 70-79

For adults between 70 and 79, business imposters represent the highest reported fraud risk. These scams often involve scammers pretending to be representatives from legitimate companies, such as financial institutions, utility companies, or tech support services. 

Older adults may be tricked into providing personal information, making payments, or even sharing account credentials. 

Following business imposters, online shopping scams and tech support scams rank as the next most reported fraud types, demonstrating the range of tactics scammers use to target seniors.

5. Credit Cards Are the #1 Form of Fraud Payment for Adults Aged 70-79

When paying fraudsters, credit cards are the most frequently used payment method for adults aged 70 to 79, with 26% of victims in this age group reporting credit card payments. 

19% of seniors also reported paying through gift cards or reloadable cards, and another 12% used debit cards, reflecting scammers’ tendency to request alternative payment forms to avoid detection.

6. Investment Scams Are the Most Costly for Adults 60 and Over

Investment scams lead to the highest financial losses for adults aged 60 and above, costing this age group a staggering $404 million in 2022 alone. 

These scams often take the form of fraudulent investment opportunities, Ponzi schemes, or fake retirement plans targeting older adults who may be looking to increase their savings. 

7. AI-Driven Scams Could Cost Older Adults as Much as $100 Billion by 2025

AI (Artificial Intelligence) scams are on the rise. They’re projected to cost a staggering $100 billion by 2025, posing a significant risk to your financial security and trust in others.

Consider the story of a retired attorney from New York. Responding to an innocent LinkedIn message, he fell victim to a fake romance scam, losing $468,000 in just 75 days. The scammer used sophisticated AI technologies to appear genuine, posing as a career-oriented woman offering assistance to earn money through cryptocurrency.

Romance scams are not the only concern. Ransom calls and fake government collection notices are also common in AI scams. Scammers use AI tools to mimic the voice of someone you trust or change caller ID information, making it hard to tell real from fake. These clever techniques can deceive even smart and careful people. In fact, a McAfee report stated that 70% of adults lack confidence in distinguishing between real and cloned voices.

To protect yourself, staying informed is crucial. Here are three key tips:

1. Be Informed: Know that these tech-savvy scams are becoming more common. Keep updated on their tricks to spot anything suspicious.

2. Verify Before Trusting: Hesitate before providing personal or financial details to unexpected callers or messages. Instead, call back with a verified number if you must pay over the phone.

3. Safeguard Your Passwords: Treat your passwords like your house keys. Keep them secret, unique, and locked away from others.

What Are the Most Common Types of Senior Scams?

Fake Medical Insurance Plans

One of the most common scams targeting seniors involves unscrupulous companies that claim to be selling comprehensive healthcare plans. They falsely claim that they are experts who provide government-sponsored health insurance policies, and some even claim to be affiliated with AARP or be providers of Medicare supplement insurance plans.

In reality, the plans these companies are selling are not comprehensive and have limited benefits. Some plans are medical discount plans rather than insurance plans, and they don’t offer adequate coverage.

These scammers create websites that look official, making them difficult to recognize that what they are offering is a scam.

Tech Support

Some scammers operate fake technical support operations, which are promoted through internet ads directed toward those needing technical support or password recovery assistance.

When consumers click on these ads, they are provided with options for diagnostic testing. This fake testing will reveal that viruses are creating problems for their computers. This “testing” is a tool that these companies use to convince seniors that they need to purchase a service plan to remove these viruses and prevent further problems. Seniors who are unaware of this scam and decide to purchase these service plans are putting their financial well-being at risk when they provide credit card information for payment.

Robocall Credit Card Interest Reduction

These robocall scammers claim they can help seniors lower their credit card interest rates to as low as zero percent. They claim that they just need to confirm and collect some information to activate this discount.

Scammers involved in this scam trick consumers into providing their credit card numbers, Social Security numbers, and other personal information. They use this information to apply for unauthorized credit cards in consumers’ names.

The new, lower-interest credit cards issued to consumers often have promotional rates that are low for a limited time and will eventually increase. Consumers can also be left on the hook for substantial bank fees or transaction fees.                                                                                                                                    

Business Opportunity Schemes

“Be your own boss. Enjoy your golden years. Fire your boss and build your dreams.” These are just some of the claims you may have seen in ads made by scammers running business opportunity schemes. These ads make unsubstantiated claims that people who purchase their programs or sign up for their services can make thousands of dollars in a short time.

In reality, consumers end up paying thousands of dollars for worthless programs, and they will never get their money back. In addition to investing large amounts of money, many seniors have also ended up with loans or credit card debt to cover the cost of these financial scams.

Money Transfer Systems Fraud

There are several different types of money transfer system scams that con artists use to steal money from unsuspecting consumers. Some may claim to provide transfer services for a fee to send money overseas. Others may tell you that you’ve won a lottery or cash prize, and you need to send them money to cover processing fees and taxes. Some scammers pose as representatives from charities who want you to transfer money as a donation.

Another common way scammers use money transfer scams is to pose as sellers on auction websites, such as eBay. When a consumer purchases a product and uses a money transfer to pay for it, the seller takes the money but doesn’t send the product.

Real Estate Scams

Some scammers use fake real estate deals to steal money from seniors. These fake companies claim they are selling lots for residential development in new, luxury communities in foreign countries, often in Central America. 

They claim that these developments will include luxury amenities, such as golf courses. They also claim that since these developments will be completed soon, the value of the lots will increase quickly, providing a large amount of equity for buyers.

These scammers often have colorful brochures that highlight how attractive the developments are, when in reality, the land is far away from utilities, out in the middle of nowhere, or not worth a fraction of the price paid. Sometimes scammers even use fake documents to sell land that they don’t own.

Negative Option Marketing

This scheme involves companies that are giving away free trials of their products if buyers pay shipping and handling costs. After unsuspecting consumers sign up for these free products, the scammers enroll them without their consent into an auto-delivery plan for more products at full-price. Sometimes consumers are also charged full-price if these free trials are not canceled within a short time.

Unscrupulous fraudsters have also used this method to scam consumers out of money by charging them for additional products that they did not even purchase. These scammers sell a variety of products, including personal care items, weight loss products, stop-smoking patches, and subscription programs.  

Anti-Aging/Health Claims

Scammers often target seniors by selling fake anti-aging products that promise miraculous results. From fake Botox alternatives and face creams to youth serums and stem cell therapy treatments, the products are endless. Some companies make unsupported claims that their products can help cure medical conditions, such as Parkinson’s disease and macular degeneration.

Unsuspecting consumers can end up spending several thousand dollars as they sign up for expensive initial anti-aging treatments and then find out they need more treatments to achieve the promised results.

Some of these anti-aging products are nothing but placebos, and some may include harmful chemicals, such as formaldehyde.

How to Avoid and Report Scams

Below are some tips to help you protect yourself from unscrupulous con artists and avoid becoming the victim of a scam.

1. Question Companies’ Claims and Motives

If it sounds too good to be true, it probably is. Companies that claim their products can cure illnesses, provide miraculous results, take years off of your appearance, or land you in the middle of a luxury development in paradise, are probably not legitimate.

2. Never share your personal or financial information over the phone.

If someone who claims to be from your bank or credit card company contacts you, don’t provide any information over the phone. Instead, ask for a phone number to call them back. Scammers usually hang up at this point. Remember that any companies, agencies, or creditors you do business with will already know your personal information.

3. Don’t buy anything from solicitors over the phone.

If someone tries to sell you something or collect money for a charity over the phone, you should tell the caller that you don’t purchase items or donate money over the phone, and you will need information in writing.

4. Get on the “Do Not Call” list.

This is a free national registry designed to prevent telemarketers from contacting you. You can register your home or mobile phone to eliminate these calls. You could still receive calls from charities, debt collectors, or political groups since the registry doesn’t apply to them.

5. Remember you may be at risk from those close to you.

According to the National Council on Aging (NCOA), more than 90% of all elder abuse, including financial abuse, happens at the hands of seniors’ family members. Strangers aren’t the only ones who can defraud you, and many family members, including adult children and grandchildren, have drained joint bank accounts and stolen assets from their senior relatives.                                                                                                                          

6. Monitor your credit card and bank accounts.

Check your bank and credit card statements every month for any unauthorized charges. If you notice any suspicious credit card activity, call your credit card company right away. For suspicious activity with your bank account, contact your bank.

7. Make sure your computer doesn’t have any viruses lurking

Viruses can disguise themselves as legitimate programs and become very annoying once installed. You may see pop-ups and ads for services you never subscribed to or have no interest in. The FixMeStick is a virus removal device on a USB stick. It empowers you to clean your own computer from the comfort and privacy of home. Learn more here: www.FixMeStick.com.

If you have been the target of a scam, you should report it to the FTC. Filing a complaint can provide investigators with the information they need to identify scammers and prevent them from harming other older people. You can contact the FTC by phone or online:                                                                                                                     

FTC: (877) FTC-HELP (877-382-4357) or TTY 866-653-4261

ftc.gov/complaint

Sources:

• https://www.ftc.gov/system/files/documents/reports/protecting-older-consumers-2018-2019-report-federal-trade-commission/p144401_protecting_older_consumers_2019_1.pdf
• https://public.tableau.com/profile/federal.trade.commission#!/vizhome/AgeandFraud/Infographic
• https://www.ftc.gov/news-events/press-releases/2019/10/ftc-report-congress-details-fraud-reports-older-consumers
• https://www.ftc.gov/news-events/blogs/business-blog/2019/10/scams-older-consumer-some-surprising-findings
• https://www.consumer.ftc.gov/features/feature-0030-pass-it
• https://www.justice.gov/usao-ri/pr/five-charged-online-romance-scams-targeting-seniors
• https://www.ncoa.org/economic-security/money-management/scams-security/top-10-scams-targeting-seniors/#intraPageNav4
• https://www.cnbc.com/2019/02/13/older-americans-lose-almost-3-billion-a-year-to-scams.html
• www.collins.senate.gov/sites/default/files/2019%20Fraud%20Book.pdf
• https://www.ncoa.org/economic-security/money-management/scams-security/protection-from-scams/https://
• www.donotcall.gov/
• https://www.lifepathscounseling.com/emotional-support-fraud-scams/