What Is Elder Fraud?

Elder fraud refers to financial scams and deceptive schemes targeting older adults. Criminals use a variety of tactics—ranging from phone scams and online fraud to impersonation of government officials—to steal money, personal information, or both.

With seniors losing over $3 billion annually to scams, elder fraud has become a growing crisis. Many victims hesitate to report fraud due to shame, fear, or lack of awareness, making this crime even harder to track and prevent.

Understanding why seniors are targeted and the types of scams they face can help individuals and families take proactive steps to stay safe.

Why Are Seniors Targeted by Scammers?

Scammers specifically target seniors because they often have stable finances, a trusting nature, and may be less familiar with modern fraud tactics. Criminals exploit these characteristics, using fear, manipulation, and deception to convince elderly individuals to hand over money or personal information.

• Tend to be more trusting and polite, making them easier to manipulate.
• May live alone or experience social isolation, increasing their vulnerability to emotional manipulation.
• Often have significant savings, retirement funds, or home equity.
• May struggle with technology, making online scams harder to detect.
• Might hesitate to report fraud, either due to embarrassment or fear of losing financial independence.

Key Reasons Why Seniors Are Vulnerable to Scams

1. Financial Stability & Assets

Many seniors have retirement savings, pensions, home equity, and investments, making them attractive targets for financial scams. Scammers see older adults as a prime demographic because they often have access to larger sums of money compared to younger individuals still in the workforce.

Additionally, many seniors own property outright and may not closely monitor their accounts for suspicious activity, giving scammers an opportunity to drain funds over time without immediate detection.

2. Trusting & Polite Nature

Older generations were often raised with strong social etiquette, making them more likely to engage in conversation with strangers rather than immediately hanging up on unsolicited calls. Scammers take advantage of this politeness, using friendly tones, official-sounding language, and psychological pressure to keep the conversation going until they gain trust.

Seniors are also less likely to suspect deception, which means they may fall victim to scams that sound too good to be true, such as fake sweepstakes winnings or charitable donation requests.

3. Lack of Familiarity with Digital & Phone-Based Scams

• Many older adults are not as tech-savvy as younger generations, making them easier targets for email phishing scams, online fraud, and phone-based deception.
• Phishing emails designed to look like official government or bank communications can easily trick seniors into clicking malicious links or sharing sensitive details.
• Caller ID spoofing makes it appear as though a scam call is coming from a legitimate source, like Medicare or the IRS, leading seniors to trust fraudulent requests.
• Social media scams exploit seniors who use platforms like Facebook but may not recognize fake profiles or romance scams.

4. Social Isolation & Loneliness

Many seniors experience social isolation, especially those who live alone, have lost a spouse, or have limited interaction with family and friends. Scammers capitalize on this loneliness by posing as friendly figures—whether as romantic interests, fake customer service representatives, or even impersonating family members in distress.

For example, romance scammers build emotional connections over time, gaining their victim’s trust before asking for financial help. These scams can go on for months or even years before the senior realizes they’ve been deceived.

5. Cognitive Decline & Memory Issues

While not all seniors experience cognitive decline, conditions like dementia and mild cognitive impairment can make older individuals particularly vulnerable to scams. Forgetfulness, confusion, or difficulty processing information can make it easier for scammers to manipulate them into giving away personal information or money.

Scammers often call repeatedly, using persistence and intimidation until the victim complies. In some cases, seniors may not even remember sending money multiple times, making them easy repeat targets.

6. Fear & Pressure Tactics

Scammers frequently use high-pressure tactics and fear to rush seniors into making hasty decisions. Common fear-based scams include:

• IRS or government impersonation scams, where fraudsters claim the victim owes back taxes and will be arrested if they don’t pay immediately.
• Medicare scams, where criminals pretend to be Medicare representatives and say the victim’s benefits will be canceled unless they provide personal details.
• Grandparent scams, where scammers pose as a distressed family member needing immediate financial help.
• By creating a sense of urgency and fear, criminals prevent seniors from taking time to verify claims, making them more likely to comply.

By recognizing these risk factors, seniors and their families can take steps to spot fraudulent behavior early and avoid falling victim.

10 Common Elder Fraud Scams

Scammers use various tactics to deceive older adults. Below are some of the most widespread elder fraud schemes and how they work.

1. Romance Scams

Romance scams target seniors by preying on emotional vulnerability and the desire for companionship. Fraudsters pose as potential romantic partners on dating websites, social media, and even chat apps, slowly gaining the trust of their victims before requesting money under false pretenses. These scams can be particularly devastating as they not only lead to financial loss but also cause emotional distress when the victim realizes the relationship was never real.

Unlike quick, high-pressure scams, romance scams often unfold over weeks or months, making them difficult to detect. Scammers may groom their victims by exchanging daily messages, calling frequently, and expressing love early on to create a strong emotional attachment. Once trust is established, they fabricate convincing emergencies that require financial assistance.

Common Tactics Used in Romance Scams

• Fake identities: Scammers often pose as widowed, divorced, or working overseas (military personnel, engineers, doctors, or business owners) to justify why they can’t meet in person. - Emotional manipulation: They profess love quickly, using affectionate messages to establish a deep emotional bond.
• Financial deception: After building trust, they claim to have a medical emergency, travel issue, legal problem, or business crisis and request financial help.
• Excuses to avoid meeting: They always have a reason why they can’t meet in person or video chat, often citing work obligations or sudden emergencies.
• Fake documentation: Some provide fraudulent passports, plane tickets, or medical bills to make their story seem legitimate.

How to Avoid Romance Scams

• Be skeptical of online relationships that escalate quickly or involve professions requiring frequent travel (military, oil rig workers, international business owners).
• Never send money, gift cards, or wire transfers to someone you haven’t met in person.
• Perform a reverse image search on profile photos to check if they belong to someone else.
• Ask a trusted friend or family member for their opinion before engaging further.
• If you suspect a scam, cut off communication immediately and report the profile to the platform it originated from.
• Warning signs: Requests for money, reluctance to meet in person, or excuses for why they can’t video chat.

2. Tech Support Scams

Tech support scams exploit fear and confusion about technology, particularly among seniors who may be less familiar with cybersecurity threats. Scammers pose as representatives from Microsoft, Apple, or other well-known tech companies, claiming that the victim’s computer has been infected with malware or hacked. They convince victims to grant remote access to their device or pay for unnecessary services, resulting in financial loss and potential identity theft.

These scams typically begin with a phone call, pop-up warning, or email alert that looks urgent and official. The fraudster pressures the victim into acting quickly, warning that failure to comply will result in data loss, stolen passwords, or system failure. In reality, these are fake threats designed to trick the victim into paying for worthless or harmful services.

Common Tactics Used in Tech Support Scams

• Pop-up warnings: Fake security alerts appear on a computer screen, instructing the user to call a “Microsoft” or “Apple” helpline to fix an issue.
• Cold calls from “tech support”: Scammers claim to be from a well-known company and say the victim’s computer has been compromised.
• Remote access scams: The fraudster asks the victim to install a program like TeamViewer or AnyDesk, giving the scammer complete control over their computer.
• Fake repair fees: Victims are pressured into paying hundreds of dollars for bogus security software, virus removal, or extended warranties.
• Data theft: Once scammers gain remote access, they may steal passwords, banking details, and personal files.

How to Avoid Tech Support Scams

• Never trust unsolicited tech support calls—legitimate companies do not contact users about computer issues out of the blue.
• Ignore pop-up warnings instructing you to call a number or download software. Real security alerts never ask you to call a support line.
• Do not give remote access to anyone who calls or emails unexpectedly.
• Keep your antivirus software updated and run scans regularly to check for real threats.
• If in doubt, contact your device manufacturer or a trusted IT professional for assistance.
• Warning signs: Unsolicited calls, pop-up alerts urging immediate action, or demands for payment via gift cards or wire transfers.

3. Grandparent Scams

Grandparent scams prey on a senior’s love for their family, using fear and urgency to trick victims into sending money. Scammers pose as a distressed grandchild or a relative, claiming to be in trouble and in urgent need of financial assistance. These scams are particularly effective because they rely on emotion over logic, catching seniors off guard and pressuring them to act before verifying the situation.

The scam often begins with a phone call, text message, or email, with the fraudster saying something like, “Grandma, it’s me! I’m in trouble, but please don’t tell Mom or Dad.” They create a sense of panic by claiming they were in a car accident, arrested, or stuck in a foreign country without money. The scammer then urgently requests funds via wire transfer, prepaid gift cards, or even cash delivered in person.

Common Tactics Used in Grandparent Scams

• Caller ID spoofing: Scammers manipulate phone numbers to make it appear as if the call is coming from a familiar or local number.
• Impersonation of a family member: Fraudsters may research family details from social media or use vague greetings like “Grandpa, it’s me” to get the victim to fill in the blanks.
• Urgent pleas for secrecy: Victims are often told, “Please don’t tell Mom or Dad”, preventing them from checking the story.
• Requests for quick money transfers: Scammers insist on gift cards, wire transfers, or cash drop-offs, methods that are difficult to trace or recover.
• Fake law enforcement impersonation: Sometimes, scammers pretend to be police officers or lawyers, warning the grandparent that their relative needs bail money immediately.

How to Avoid Grandparent Scams

• Stay calm and verify the caller’s identity. Ask questions that only a real family member would know.
• Call the grandchild or another trusted family member directly to confirm if the situation is real.
• Avoid acting under pressure. Scammers rely on fear and urgency to force a quick decision.
• Never send money via gift cards, wire transfers, or cash drop-offs. These are red flags for scams.
• Set up a family code word that only real relatives know, which can be used to verify a genuine emergency.
• Warning signs: Requests for secrecy, urgent demands for money, or vague details about the "emergency."

4. Government Impersonation Scams

Government impersonation scams involve fraudsters pretending to be IRS agents, Social Security representatives, Medicare officials, or law enforcement officers. They use threats, intimidation, or fake benefits offers to steal money or personal information. Victims are often told they owe unpaid taxes, risk losing Social Security benefits, or must verify personal details to avoid legal trouble.

Common Tactics Used in Government Impersonation Scams

• Threats of arrest or fines: Scammers claim the victim owes money to the IRS or Social Security and will face immediate legal consequences if they don’t pay.
• Medicare or Social Security benefit fraud: Victims receive calls stating their benefits are being canceled unless they confirm personal details.
• Caller ID spoofing: Fraudsters manipulate phone numbers so the call appears to be from an official government agency.

How to Avoid Government Impersonation Scams

Know that government agencies never call demanding payment. The IRS, Medicare, and Social Security only communicate official matters by mail. Never give out personal or banking information to unsolicited callers claiming to be from the government.

Hang up and contact the agency directly using the official phone number found on their website. Warning signs: Threats of arrest, demands for payment over the phone, or requests for Social Security numbers.

5. Sweepstakes & Lottery Scams

Sweepstakes and lottery scams trick victims into believing they’ve won a large prize, such as cash, a luxury car, or a vacation. However, to claim their winnings, they are told they must pay taxes, processing fees, or legal costs upfront. In reality, there is no prize, and the scammer disappears after collecting the money.

Common Tactics Used in Sweepstakes & Lottery Scams

• Unsolicited “winning” notifications: Victims receive calls, emails, or letters claiming they’ve won a contest they never entered.
• Requests for upfront payments: Scammers insist on processing fees, taxes, or customs charges before releasing the prize.
• Fake checks and official-looking documents: Fraudsters send phony cashier’s checks that later bounce, leaving the victim financially responsible.

How to Avoid Sweepstakes & Lottery Scams

• Remember, you can’t win a contest you didn’t enter. Legitimate sweepstakes never require upfront payments.
• Never send money, gift cards, or wire transfers to claim a prize. Real contests cover any associated costs.
• Verify with trusted sources by checking with official lottery organizations before believing any winning notification.
• Warning signs: Winning a contest never entered, requests for upfront payments, or fake checks.

6. Home Repair Scams

Home repair scams involve fraudulent contractors who pressure seniors into paying for unnecessary, overpriced, or incomplete repairs. These scammers often appear after natural disasters or go door-to-door, claiming urgent repairs are needed. Once they receive payment, they either perform substandard work, inflate costs, or disappear entirely.

Common Tactics Used in Home Repair Scams

• Unsolicited door-to-door offers: Scammers claim they are "working in the area" and noticed an urgent issue with the victim’s home.
• High-pressure sales tactics: They insist the repair must be done immediately and demand full payment upfront.
• Shoddy or incomplete work: After being paid, they either perform minimal repairs, use low-quality materials, or vanish without finishing the job.

How to Avoid Home Repair Scams

Get multiple estimates from licensed contractors before agreeing to any work. Never pay the full amount upfront; legitimate contractors accept partial payments based on project milestones.

Verify licenses, insurance, and references before hiring any repair service. Warning signs: Unsolicited home repair offers, aggressive sales tactics, or lack of a written contract.

7. Caregiver or Family Fraud

Caregiver or family fraud occurs when a relative, caregiver, or close acquaintance takes advantage of a senior’s trust to steal money, manipulate financial decisions, or gain control over their assets. This type of fraud is especially harmful because it involves betrayal by someone the victim depends on for care or support. Financial abuse can go undetected for long periods, leading to devastating losses before family or authorities step in.

Common Tactics Used in Caregiver or Family Fraud

• Misuse of financial accounts: The caregiver or family member withdraws money, forges checks, or opens credit cards in the senior’s name.
• Coerced changes to wills or power of attorney: Fraudsters pressure the senior to alter legal documents in their favor.
• Isolation and manipulation: They limit access to friends and other family members to hide their actions and control the victim’s finances.

How to Avoid Caregiver or Family Fraud

• Appoint a trusted financial guardian who is not the primary caregiver to monitor financial activity.
• Regularly review bank statements, credit reports, and legal documents for unauthorized changes.
• Encourage open conversations with multiple trusted family members to ensure one person doesn’t have total financial control.
• Warning signs: Sudden changes in financial behavior, missing valuables, or isolation from other family members.

8. Investment & Financial Scams

Investment and financial scams target seniors by offering “risk-free” opportunities with guaranteed high returns. Scammers present fraudulent investment deals, such as phony real estate projects, fake stocks, Ponzi schemes, or cryptocurrency scams, convincing victims to hand over their savings. Once the money is invested, it often disappears, with fraudsters making excuses or cutting off contact.

Common Tactics Used in Investment & Financial Scams

• Guaranteed high returns with no risk: Scammers promise big profits with little to no downside, which is unrealistic in legitimate investments.
• Pressure to act quickly: Victims are told they must invest immediately or risk missing out on a once-in-a-lifetime opportunity.
• Unregistered or offshore investments: Fraudsters push unregulated or hard-to-trace investments that make it difficult to recover lost funds.

How to Avoid Investment & Financial Scams

• Always research investment opportunities through the Securities and Exchange Commission (SEC) or state regulators before committing.
• Be wary of unsolicited financial offers—legitimate financial advisors don’t cold-call or pressure clients into quick decisions.
• Work with licensed professionals and confirm their credentials before making any financial commitments.
• Warning signs: Promises of guaranteed profits, high-pressure sales tactics, or lack of documentation.

9. Fake Charity Scams

Fake charity scams take advantage of seniors’ generosity and willingness to help others, especially after natural disasters or during the holiday season. Fraudsters pose as representatives of legitimate charities or create entirely fake organizations, convincing victims to donate money that never reaches those in need. These scams are particularly effective because they use emotional appeals to pressure victims into making quick decisions.

Common Tactics Used in Fake Charity Scams

• Urgent requests for donations: Scammers claim immediate help is needed for a disaster relief fund or a struggling family.
• Fake websites and caller ID spoofing: Fraudsters create official-looking donation pages or make calls from numbers that appear to be legitimate charities.
• Requests for untraceable payments: They insist on donations via gift cards, wire transfers, or cryptocurrency, which are difficult to recover.

How to Avoid Fake Charity Scams

• Verify the charity’s legitimacy by checking CharityNavigator.org or the Better Business Bureau (BBB) Wise Giving Alliance.
• Never donate over the phone or via email unless you’ve personally contacted the organization through their official website.
• Use secure payment methods such as credit cards or checks to track where your donation is going.
• Warning signs: Requests for payment via gift cards, refusal to provide tax-deductible details, or vague mission statements.

10. Online Shopping & Email Scams

Online shopping and email scams target seniors by tricking them into purchasing non-existent products, providing personal information, or clicking malicious links. Fraudsters create fake e-commerce websites, send phishing emails impersonating trusted companies, or offer too-good-to-be-true discounts to lure victims into revealing sensitive details or making fraudulent purchases. These scams have become more common as more seniors turn to online shopping and digital communication.

Common Tactics Used in Online Shopping & Email Scams

• Fake websites and counterfeit products: Fraudsters create realistic-looking online stores that take payments but never deliver products.
• Phishing emails impersonating companies: Emails claiming to be from banks, Amazon, PayPal, or other trusted brands request login credentials or payment information.
• Urgent or suspicious links: Scammers send messages with fake tracking updates, account warnings, or fake invoices designed to trick users into clicking malware-infected links.

How to Avoid Online Shopping & Email Scams

• Only shop from well-known, reputable retailers and check reviews before making a purchase.
• Never click on links in unsolicited emails—instead, visit the company’s website directly by typing the URL in your browser.
• Look for warning signs of a fake website, such as poor grammar, lack of contact information, and requests for payment via gift cards or wire transfers.
• Warning signs: Unrealistic discounts, requests for payment via wire transfer, or poor website security.

How to Protect Seniors from Elder Fraud

• Verify Requests for Money: Always confirm through a trusted source before sending money.
• Use Strong Passwords & Security Features: Enable two-factor authentication on banking and email accounts.
• Be Skeptical of Unsolicited Calls & Emails: Hang up on unexpected callers asking for personal information.
• Monitor Bank Statements & Credit Reports: Check for suspicious activity and set fraud alerts.
• Talk About Scams with Family Members: Keep seniors informed about current scams and encourage open discussions.

How to Report Elder Fraud

If you or a loved one has been targeted by a scam, report it immediately:

• FBI’s Internet Crime Complaint Center (IC3): ic3.gov
• Federal Trade Commission (FTC): reportfraud.ftc.gov
• National Elder Fraud Hotline: (833) 372-8311
• Local Law Enforcement: File a police report for financial fraud.
• Banks & Credit Card Companies: Request fraud investigations and account protections.

Frequently Asked Questions (FAQs)

What is elder fraud?

Elder fraud is any financial scam or deceptive scheme targeting seniors, often involving phone scams, online fraud, or identity theft.

What are the most common scams targeting seniors?

Common scams include romance fraud, tech support scams, lottery scams, and government impersonation.

How can seniors protect themselves from fraud?

Seniors should verify financial requests, avoid sharing personal details over the phone, and report suspicious activity immediately.

What should I do if I suspect elder fraud?

Report it to law enforcement, financial institutions, and fraud reporting agencies like the FBI’s IC3 or the FTC.

Can banks help if a senior is scammed?

Yes, banks can freeze accounts, investigate fraudulent transactions, and offer identity theft protection services.