Common financial scams that target seniors

Financial scams are as old as the concept of currency. But consumers' vulnerability to scams has seemingly increased in the twenty-first century, when the Internet and devices like smartphones have enabled scammers to gain access to potential victims' financial information and even gain virtual entry into their homes. Seniors are targeted by financial scammers with such frequency that the term "elder fraud" has entered the English lexicon and is now widely recognized as a notable threat to individuals age 60 and older. In recognition of that threat, the Elder Justice Initiative aims to support and coordinate U.S. Department of Justice efforts to combat financial fraud that targets older adults. Those efforts are ongoing and include a number of initiatives to educate older adults about elder fraud, including warning seniors about some notable scams that criminals use to target older adults. · Social Security Administration Impostor Scam: When perpetrating this scam, criminals typically contact prospective victims via telephone and falsely claim that suspicious activity has prompted the suspension of their Social Security number. Scammers may also indicate money must be withdrawn from a potential victim's bank and stored on gift cards for security's sake. It's important to note caller ID spoofing is often utilized when perpetrating this scam so an incoming call appears to be coming from the Social Security Administration. · Tech Support Scam: This scam involves criminals claiming to be representatives from widely recognized companies who are calling to inform seniors that viruses or malware have been detected on their devices. Some also may claim a target's computer has been hacked. The Federal Trade Commission notes perpetrators of this scam pretend to be tech support and request victims enable them to remotely access their devices or computer. Granting such access provides an avenue to view sensitive information, but scammers also may diagnose nonexistent problems and charge a fee. But the scam does not always stop there. Some call back later and offer a refund to account for services that can no longer be rendered or to correct an overcharge. The scammers then request victims' specific banking details under the guise of "correcting" these alleged oversights. · Lottery Scam: The lottery scam involves scammers calling potential victims and informing them they have won a foreign lottery or sweepstakes. Perpetrators of this scam typically identify themselves as lawyers, customs officials or lottery representatives. The telemarketers behind this scam may be based in Jamaica, but the U.S. Embassy in Jamaica warns that those behind the scam will ask winners to pay various fees, including shipping and customs duties, until victims' funds are exhausted. · Romance Scam: The FTC warns that wildly popular dating sites, social networking platforms and chat rooms provide opportunities for scammers to identify and exploit potential victims. The aim of these scams, which many victims are too ashamed to report even after they realize they've been victimized, is to convince targets to send money in the name of love. But the EJI warns that online love interests who ask for money are almost certainly scam artists. These are just a handful of the many ways that modern scammers target seniors. More information about these and other scams is available at justice.gov/elderjustice.