Saving enough money to retire is not easy. So, the idea of losing your hard-earned savings to a scam can be heartbreaking. Unfortunately, retirees are a common target for fraudsters. Scammers often look for people they believe are vulnerable—and older adults with savings are often on that list.
Even if you think you’re careful, your financial and personal information may be more at risk than you realise. The best way to protect yourself is to learn about the most common tricks scammers use.
Let’s look at 14 common scams targeting older Americans, especially retirees, and how to avoid them.
Retirees Are Losing Billions Each Year
According to the AARP, seniors lost more than $28.3 billion in scams in 2023. And many experts believe the real number is even higher because many victims feel too ashamed to report the fraud.
But remember: anyone can fall for a scam, no matter how smart or experienced they are. Knowing what to watch out for is your best defence.
1. The Grandparent Scam
In this scam, someone pretends to be your grandchild or someone calling on their behalf. They say your grandchild is in trouble—maybe arrested or hurt—and needs money urgently.
They often know real personal details about your family, making the story feel real. Some even use services like Uber to collect cash in envelopes. Always verify by calling your grandchild or their parents directly.
2. Government Imposters
These scammers pretend to be from the IRS, Social Security, or Medicare. They often spoof their number so it looks official when they call.
They’ll ask for personal details, like your Social Security Number or Medicare ID, claiming they need it to “verify” you. Don’t share such information over the phone. Government agencies don’t call to ask for sensitive data.
3. Tech Support Scams
These scams start when you search online for help with your computer or account. You may click on a fake number or pop-up that looks real.
Once you call, fake “support agents” ask for access to your device or your personal info. They may even install malware or ask for payment. Always go to official websites and avoid clicking on random ads or pop-ups.
4. Elder Financial Abuse
Sometimes, the scammer isn’t a stranger—it’s someone close, like a family member or caregiver. They may convince you to change your will, give them power of attorney, or loan money they don’t plan to return.
Be cautious and involve a trusted lawyer or financial advisor when making major financial decisions.
5. Fake Investment Opportunities
Scammers pretend to be financial experts and offer you “risk-free” investment deals that sound too good to be true. They may talk about fake bonds or guaranteed high returns.
Once you send them money, they disappear. Always consult a licensed financial advisor before investing anywhere.
6. Phishing Scams
Phishing is when a scammer sends emails or calls pretending to be from a trusted company. They ask you to click links or share your account details.
These links may install malware or take you to fake websites. Always double-check email senders and avoid clicking suspicious links.
7. Romance Scams
Scammers create fake profiles on dating sites or apps and pretend to fall in love with you. After gaining your trust, they ask for money for “medical emergencies” or “travel expenses.”
If someone you’ve never met asks for money, it’s likely a scam.
8. Sweepstakes and Lottery Scams
You get a message saying you’ve won a prize—but you don’t remember entering any contest. The scammer then asks for a “processing fee” or your personal details.
Never trust prize announcements from unknown sources. If you didn’t enter, you didn’t win.
9. Funeral Scams
Some scammers attend funerals after reading obituaries and pretend to be friends of the deceased. They then tell grieving family members that the deceased owed them money, asking to be repaid.
Stay alert at such times and don’t hand over any money without proof.
10. Reverse Mortgage Scams
You might see ads offering help to unlock the value of your home. But some of these are scams that steal your home equity or even the title deed.
Always go through certified mortgage professionals and consult someone trustworthy before signing anything.
11. Online Shopping Fraud
Online shopping can be risky if you’re not careful. Fake websites or sellers may steal your payment details or send fake products.
This scam affects everything from shoes to medicines. Buy only from reputed online stores, and be cautious with new or unknown sites.
12. Fake Charity Calls
After a natural disaster or emergency, scammers may pose as a charity and ask for donations. They may even ask for personal info along with your donation.
Always check if a charity is real before donating. You can verify it through sites like Charity Navigator or the IRS website.
13. Bank Impersonators
These scammers pretend to be from your bank or credit card company. They’ll ask for account details, OTPs, or try to get you to click on a link.
If you get such a call or email, never respond directly. Instead, call your bank using the number on their official website.
14. AI Voice Cloning Scams
Using artificial intelligence, scammers can now mimic voices of your loved ones. You might receive a call from someone who sounds like your child or grandchild asking for help or money urgently.
Before acting, always double-check by calling them back on their real number or confirming with another family member.
Scams targeting retirees are on the rise, but you can protect yourself by staying informed. If something feels suspicious—stop and verify before you respond or share personal information. And remember, falling for a scam doesn’t make you foolish—it makes you human.
Be smart, stay safe, and always talk to someone you trust if you’re unsure about a message, call, or offer.
