There are many different ways seniors are scammed and defrauded. Fraud involves someone using a senior’s vulnerability to convince the senior to hand over property, money or valuable information under false pretenses. Theft involves the perpetrator taking property or assets directly from the senior.

Who Are the Victims?

• Most are between the ages of 80 and 89
• Women are twice as likely as mento be victimized
• Most live alone
• Most require some level of help with either health care or home maintenance.

Who Are the Perpetrators?

• Strangers: 51%
• Family/Friends/Neighbors: 34%
• Business: 12%
• Medicare/Medicaid Providers: 4%
• 60% of known perpetrators are men, mostly between the ages of 30 and 59
• Women perpetrators tend to be younger, mostly between the ages of 30 and 49.

(Source: The MetLife Study of Elder Financial Abuse)

1. Misuse of assets: Involves an individual with power of attorney or guardianship misusing an elder’s assets.
2. Consumer fraud/scams: Consumer fraud involves telemarketing and mail fraud. Individuals pretending to care for older persons in order to exploit them is an example of a “sweetheart scam.”  
3. Theft: Theft involves the act of stealing possessions or money, or gaining access to seniors’ personal information to steal their identity or to open credit cards.
4. Negligence: Occurs when a person deemed to be responsible for an elder’s financial matters and/or care neglects these duties.

Other specific types of elder financial fraud & abuse include:

• Power of Attorney Abuse: Gaining legal representation over a senior and using it to take property or other assets.

• Reverse Mortgage Scams: Using seniors’ fear of financial insecurity to “sell” fraudulent reverse mortgages.

• Living Trust and Annuities Scams: Using seniors’ fear of financial insecurity to purchase unneeded, inadequate, unethical or confusing investments.

• Deed Theft and Foreclosure Rescue Scams: Using seniors’ fear of financial insecurity to scam.

• Healthcare Scams: Getting information about seniors’ medical accounts —like Medicare and Medicaid—in order to submit fraudulent claims.

• Lottery and sweepstakes scams: Telling a senior about winning a “prize” that requires wiring funds abroad first in order to receive it.

• Government or “official” impersonator scams: Asking the victim for personal identifying information to “verify” a false bill or transaction.

• Failure to pay bills
• Failure to buy food or medication
• Large amounts of money withdrawn or transferred
• Missing personal property or belongings
• Isolation of the elder from friends or family

• Be aware that it can happen to anyone.
• Pay attention to possible signs of financial abuse among your family members, friends and clients.
• Educate seniors and their caregivers about financial abuse risks and what to look for.
• Advise older adults to contact caregiver support groups if they need help.
• Stay knowledgeable about your community’s resources so you can provide caregivers with current information.
• Report! If there are any signs of wrongdoing, immediately file a report with the local police department or the police department where the crime was located. Reports can be made anonymously and the reporter’s identity is protected.
• Research the Federal Trade Commission’s (FTC) education campaign Pass It On.  It provides education materials and resources for discussing different types of fraud and recognizing scams. Orders for such materials can be placed here: ftc.gov/PassItOn, ftc.gov/pasalo (Spanish), and ftc.gov/Bulkorder. FTC also released a video called Hang up On Social Security Scam Calls to publicize an alarming and common type of phone scam. View the link to learn what this scam sounds like and pass it along to inform other seniors. 
• Learn about COVID-related scams and issues at FTC’s new campaign website here.