Protect your wallet: A guide to avoiding financial scams
Source: USAging’s Eldercare Locator
Scams targeting people age 60 and older resulted in more than $3.4 billion in losses in 2023, according to the FBI. While financial scams and fraud happen throughout the year, the holidays are a predictable time to see an increase. More online shopping, along with increased phone or email donation appeals, means more opportunities for fraud. It is also an emotional time of year for many people, especially those who may feel lonely or isolated, which scammers can exploit.
The Eldercare Locator can help older adults, caregivers and their families to stay safe and worry free by protecting themselves and loved ones from financial fraud and scams during the holiday season.
Here are some of the most common types of scams and fraud, according to the Consumer Financial Protection Bureau (CFPB):
- Charity: Scammer pretends to represent a real or made-up organization and asks for donations.
- No delivery: A person buys something online but never receives the item.
- Grandparent: Scammer pretends to be a grandchild or relative in trouble and asks for money or gift cards.
- Tech support: Scammer pretends to be a computer expert offering technical support to trick people into giving access to their computers and personal information.
- Romance: Scammer pretends to be romantically interested in someone, develops trust, and then asks for money or a loan.
- Blackmail: Scammer threatens to release personal information unless the victim sends money using wire transfer or gift cards.
- Investment: Scammer pretends to be a financial professional with urgent investment opportunities that are fake, including offers to teach you how to invest in cryptocurrency.
Tips to avoid scams
Here are some of the things you can do to prevent getting scammed or becoming a victim of financial fraud:
- Be wary of someone offering you a “great deal” that seems too good to be true or pressuring you to act quickly.
- Do not be afraid to say “no” or hang up if you feel uncomfortable or suspicious about a phone call solicitation or to ignore suspicious emails or text solicitations.
- Never send money using a gift card or wire transfer directly to a seller or unknown person.
- Do not click on suspicious links or open unknown attachments in text messages, emails, websites or social media.
- Be suspicious of a company asking you by phone or email to update your password or account information. Look up the company’s phone number on your own, then call the company to find out if the request is real.
- Keep personal information in a safe and secure location that unauthorized individuals cannot access.
- Do not share numbers or passwords for accounts, credit cards or Social Security.
- Monitor your financial accounts by setting up alerts for unusual activity and reviewing statements more frequently during the holidays.
- Build a strong support network and stay connected with others to prevent social isolation. This can decrease the chances that you will experience financial exploitation and the likelihood that it goes unnoticed.
- Stay informed about current scams and keep older family members up to date on official warnings about current scams or fraud.
Scam-fighting resources
- U.S. Department of Justice’s National Elder Fraud Hotline: People age 60 and older who are victims of financial fraud can call 1-833-FRAUD-11 (1-833-372-8311). A case manager will assist with the reporting process at the federal, state and local levels.
- Federal Trade Commission: Report suspected fraud at 1-877-382-4357 or ReportFraud.ftc.gov.
- Eldercare Locator: Gateway for older adults and people with disabilities searching for information and resources vital to their well-being and independence. 1-800-677-1116 (voice, videochat or text) | usaging.org/h4h2024
- Philadelphia Corporation for Aging: Report suspected elder abuse, including financial exploitation of an older Philadelphian to PCA’s Older Adult Protective Services 24/7 at 215-765-9040.
