Sweepstakes, IRS Impersonation & More: Scams Every Senior Should Know About
It seems to be an unfortunate certainty these days: if you’ve got a phone or a mailbox or an email address, chances are good that at some point someone has tried to scam you. For a variety of reasons, seniors are particularly vulnerable to scams. In fact, research recently published in the Annals of Internal Medicine found that a vulnerability for scams may be a warning sign of dementia.
A recent report from the United States Senate Special Committee on Aging sets out, state by state, the scams most frequently reported to their Fraud Hotline.
We’ve talked about scams that seniors are susceptible to before. Here is an updated list of of the top four scams reported by seniors in Rhode Island in 2018. Be sure to talk to the seniors in your life about them.
- IRS Impersonation Scam
One of the most pervasive scams, it’s estimated that the IRS impersonation scam has duped Americans of more than $72.8 million. In this scam, fraudsters tell the victim that they owe back taxes, and threaten foreclosure, arrest or deportation if payment is not immediately made. The payments are demanded in a range of methods from the expected (certified check, wire transfer, etc.) to the unorthodox (iTunes or other retail gift cards). - Robocalls/Unsolicited Phone Calls
Despite long-standing laws supporting the national Do-Not-Call Registry, Americans receive more than 2.4 billion robocalls every month! This one is not so much a type of scam, but a tool used in the process of scamming. Scammers use technology to call phone number lists in massive volumes, and make it appear as though the call is coming from a trusted source (either the government or other authoritative body or a local area code). Once someone answers the call, the scammer proceeds with his attempt. - Elder Financial Abuse
With elder financial abuse, it’s often people in positions of trust or care who exploit the senior: family members, paid homecare workers, financial advisors or legal guardians. The abuser frequently has joint financial control or power of attorney. The abuse often comes in the form of outright theft (taking money), forged signatures, inflated invoices, etc. This type of exploitation can be extremely difficult to report to authorities, because it often involves family members. - Sweepstakes Scams
This scam preys on the near-universal dream of unexpectedly winning the lottery or another significant prize. Generally occurring by phone or mail, this scams convinces people they have won (or are just a few steps away from winning) a lottery (often the Jamaican lottery), car or luxury vacation–all they need to do is pay a processing fee to claim their prize or increase their odds of winning. The scammer will often tell the victim not to tell their family members so as not to ruin the surprise.
In addition to suffering severe financial consequences, seniors who fall victim to a scam often feel embarrassed or even ashamed. If you or a loved one have been targeted or affected by a scam, please know that there is no need to feel embarrassed. Report it to the US Senate Special Committee on Aging’s toll-free Fraud Hotline at 1-855-303-9470, where you will get help with what steps to take next. And take heart in knowing that by talking about and reporting the fraud or fraud attempt, you will help prevent others from being defrauded as well.