13 elder scams to avoid

It’s an unfortunate fact that older adults are targeted by financial scams more than any other demographic. Scams targeting older adults also appear to be increasing, making awareness and prevention especially important. According to the Federal Trade Commission, losses from fraud against older adults rose 71% in 2021 compared with 2020. The pattern appears to have continued into 2024: AARP reports that overall consumer losses from financial scams increased by 43% in 2024 over the prior year.¹ Fraud can hurt anyone’s bank account, but it can be particularly devastating for older adults.

That’s why fraud prevention and education for older adults matter now more than ever. Retirees often have more savings at their disposal than other groups, which can make them particularly attractive targets for scammers. Some older adults also experience age-associated memory or cognitive difficulties that may make them more susceptible to fraud. Others may not know how to report a scam or may hesitate to report one because they’re afraid their family will think they can no longer manage their own affairs.

Knowing about the most common scams targeting older adults is an important first step. When you understand how these schemes work, you’re better prepared to protect yourself, a parent, or another person you care about. Watch for the following types of fraud:

Impostor scams

Impostor scams were the category of financial scams with the highest increase in 2022. Also called investment scams, they were responsible for more than $3.8 billion in losses that year, double the losses from the same category in 2021. In this type of scam, a criminal poses as someone else, such as a Medicare or Medicaid office representative, utility company employee, bank representative, or government agency official. Whatever the guise, the scammer usually claims to represent an official organization or entity with which the target already has an established relationship.

Telemarketing and phone scams

Phone calls are one of the most common ways scammers defraud older adults. A scammer might pose as a salesperson promoting an enticing new product or as a charity requesting an urgent donation. This approach takes advantage of the anonymity of a phone call and the target’s response to a confusing, time-sensitive offer that seems to require an immediate decision. Because this type of fraud usually leaves no paper trail and doesn’t happen in person, authorities may have difficulty identifying and tracing the person responsible.

Lottery scams

This type of scam tricks people into believing they’ve won a large cash prize or another appealing offer, such as a vacation or car. To claim the prize, however, the scammer says they must make a payment first. In some cases, the scammer may even send the person a fake check, then try to collect additional fees for “processing payments” or “taxes.”

Health insurance or Medicare scams

Many older adults are concerned about their health, and these scams take advantage of that concern. In a “rolling lab” scam, for example, unnecessary or sometimes entirely fake tests are administered and then billed to the person’s insurance company. People may also be charged later for medical equipment they were originally told was free or for services and care they never received.

Because most people older than 65 automatically qualify for Medicare, scammers may find it easier to obtain their personal information and use it to carry out schemes like those described above.

Counterfeit prescription drug scams

Prescription drugs can be an expensive necessity for older adults with health conditions. As online markets for prescription drugs have grown, these types of scams have become increasingly common in recent years. Counterfeit drug scams can cost someone money while also putting their health at risk by providing substances that may be ineffective or even unsafe to use.

Internet fraud

Although the internet is now a common part of daily life, many older adults are still learning how to use it and recognize its risks. That lack of familiarity can make them targets for several types of internet fraud. Phishing scams may steal credit card information, fake antivirus software and “ransomware” can hijack computers, and untrustworthy websites may take someone’s money without delivering the products they ordered.

Funeral scams

The death of a loved one is a very difficult time, and grief can make it harder to focus on unfamiliar financial details. Because funerals can be expensive and many people aren’t familiar with all the associated costs, they may not realize they’re being scammed. Disreputable funeral homes may overcharge customers or bill them for unnecessary services, such as insisting that a casket is required for direct cremation. They may also try to add cancellation or transportation fees that are against the law.

Reverse mortgage scams

Reverse mortgage scams have become popular in recent years. With a reverse mortgage, a lender pays the homeowner in return for equity in property they own. Because older adults often own property, they can become targets for many of these scams. Posing as professional brokers or real estate investors, scammers may offer an older adult a free house or cash in exchange for equity in their property. In some cases, a scammer may also try to use an older adult as a straw buyer while illegally flipping a property.

Fraudulent anti-aging products

Like counterfeit prescription drugs, fraudulent anti-aging and beauty products often promise extremely low prices and results that sound too good to be true. Older adults concerned about their appearance should be wary of anyone selling treatments or medications with unrealistic claims. Although these products may sound appealing, they may not work and could cause unwanted side effects.

Romance scams

In romance scams, criminals target lonely older adults online by posing as interested romantic partners on dating websites. While some scams happen quickly, romance scams may unfold over a much longer period. The criminal develops a relationship with the person and carefully builds trust before asking for money, personal details, or bank account information. The requests may begin with seemingly innocent questions or small amounts of money. As the scam progresses, the person may send increasingly large amounts or disclose sensitive personal information. The criminal may then gain access to bank accounts or credit cards before disappearing.

The grandparent scam

In this scam, someone receives a call from a person claiming to be their grandchild. To assume that identity, the caller asks an open-ended question such as, “Do you know who this is?” If the grandparent answers with a grandchild’s name, the scammer assumes that identity and requests financial help for an urgent expense, such as rent or a mortgage payment. Like romance scams, this simple and surprisingly effective form of fraud preys on personal relationships.

Tech support scams

In this scam, criminals pose as tech support representatives online to gain remote access to someone’s devices. Once inside, they can reach sensitive personal information. Tech support scams can lead to financial losses and identity theft.

Family or caregiver scams

Unfortunately, a relative, family friend, or hired caregiver may try to take financial advantage of an older adult. Under the guise of helping with personal care or managing financial affairs, the person gains access to the older adult’s home and finances. This type of scam can happen in several ways. The person may coerce or influence the older adult to change the beneficiaries of insurance policies, wills, or trusts. They might also persuade the older adult to hand over control of their finances, add the person’s name to an account, or simply steal money or property.

Only allow someone you trust into your home to help with your care or finances. If you’re supporting a parent or another person you care about, stay aware of what’s happening in their home so you can help identify possible financial exploitation or abuse. It can help to talk to your loved one early on about how they want to manage their finances.

How to report a crime against an older adult

Stopping fraud requires knowing how scams work and reporting them when they happen. Although recovering money lost to a scam can unfortunately be difficult, reporting the crime may still help authorities identify and catch the person or group that took advantage of you or someone you care about.

Organizations such as the Better Business Bureau and the Federal Trade Commission are places to contact, as are credit reporting agencies. AARP also provides a comprehensive list of agencies to contact if you’ve experienced fraud.