Spotting the Scam

Spotting the Scam: Protecting Yourself from Financial Fraud

Helen got a phone call late one night. The voice on the other end sounded shaky and distressed.
“Grandma, it’s me. I’m in trouble. I need money.”

Helen’s heart pounded. She has four grandchildren, and the voice did sound a little like her grandson, David. The caller claimed he’d been in a car accident and needed $5,000 immediately to avoid going to jail. He begged her not to tell anyone—especially his parents.

Helen was reaching for her purse when something felt… off. She hesitated, hung up, and called David’s mother. Minutes later, David himself called back—safe at home, completely unaware of the situation.

Helen had nearly fallen for what’s known as the “grandparent scam.” And she is far from alone.

Scams Are on the Rise

Scams targeting older adults are increasing every year. In 2024 alone, the FBI received over 147,000 fraud complaints from people 60 and older. Losses totaled nearly $5 billion

Why do scammers target seniors?

  • Older adults are often more trusting

  • They may be home during the day to answer calls

  • They may have savings or established credit²

And many victims never report what happened—because they feel embarrassed or fear being seen as incapable.²

But scams can happen to anyone. Even smart, careful people get tricked. What matters is knowing the warning signs.

Common Scams Targeting Seniors

The Grandparent Scam

A caller pretends to be your grandchild—or someone calling on their behalf. They claim your grandchild is in trouble and needs money immediately.³

Scammers may:

  • Use information found online

  • Know your grandchild’s name

  • Use AI technology to mimic their voice⁴

Tech Support Scams

You get a call, email, or pop-up saying there’s a problem with your computer. The scammer offers to “fix it,” but really wants to steal your data or charge you for fake services.⁵
Losses from tech support scams reached $1.3 billion in 2023.²

Government Impersonation Scams

Someone pretends to be from the IRS, Social Security, or Medicare. They claim you owe money or your benefits are in danger. They pressure you to pay immediately—usually with gift cards or wire transfers.⁶
Real agencies never demand immediate payment.

Lottery and Sweepstakes Scams

You’re told you won—but must pay fees or taxes first. The prize doesn’t exist.⁷

Romance Scams

Someone online pretends to start a relationship. Once they gain trust, the requests for money begin. Romance scams cost Americans over $1 billion in 2024.⁷

Investment Scams

You’re offered a “guaranteed” investment with high returns and no risk. The investment is fake. Your money disappears.⁹

Warning Signs to Watch For

Most scams share some common red flags:

  • Urgency — “Act now!” “This is your last chance!”

  • Strange payment methods — gift cards, wire transfers, crypto

  • Secrecy — “Don’t tell anyone”

  • Too good to be true offers

  • Unexpected contact

  • Fear tactics or threats

If anything feels off, trust your instincts. Hang up. Don’t click. Don’t send money.

What to Do If You Think It’s a Scam

  • Pause first. Scammers rely on panic.

  • Verify. Call the real person or agency using a number you know.¹⁰

  • Don’t share personal info. Ever.

  • Talk to someone you trust. A second opinion can save thousands.

What to Do If You’ve Been Scammed

If you’ve lost money or shared personal information:

  • Contact your bank or credit card company immediately

  • Report the scam:

  • Call the National Elder Fraud Hotline: 833-FRAUD-11 (833-372-8311)⁶

  • File a police report

You are NOT alone. Reporting helps protect others too.

Helen’s Story Continues

After Helen realized what had happened, she told her family right away. Together, they agreed on a simple rule: if anyone gets a call about an “emergency,” they hang up and call the person directly.

Helen also signed up for FTC scam alerts so she can stay ahead of new tricks scammers are using.

“I felt embarrassed at first,” Helen said. “But now I know it can happen to anyone. And I always tell people—never send money until you’ve checked the story.”

Where to Get Help

  • Federal Trade Commission (FTC) – Report scams: www.reportfraud.ftc.gov or 1-877-FTC-HELP¹¹

  • FBI Internet Crime Complaint Center – Report online fraud: www.ic3.gov¹²

  • National Elder Fraud Hotline – 833-FRAUD-11 (833-372-8311)⁶

  • AARP Fraud Watch Network – 1-877-908-3360, www.aarp.org/fraud¹³

  • Local Office for the Aging – Connect with local support

This article shares general information only. This is not legal or financial advice. If you believe you have been the victim of a scam, contact law enforcement and the resources listed above.

References

  1. Aura. "The Worst Scams Targeting Senior Citizens This Year." https://www.aura.com/learn/senior-citizen-scams

  2. FBI. "Elder Fraud." https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud

  3. FBI Internet Crime Complaint Center. "FBI Warns of Scammers Targeting Senior Citizens in Grandparent Scams." https://www.ic3.gov/PSA/2023/PSA231117

  4. FCC. "Grandparent Scams Get More Sophisticated." https://www.fcc.gov/consumers/scam-alert/grandparent-scams-get-more-sophisticated

  5. FBI. "Elder Fraud." https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud

  6. IRS. "IRS Warns Against Scams Targeting Seniors." https://www.irs.gov/newsroom/irs-warns-against-scams-targeting-seniors-joins-other-federal-agencies-to-recognize-special-awareness-day

  7. Regions Bank. "Top 10 Scams Targeting Seniors and How to Avoid Them." https://www.regions.com/insights/wealth/article/scams-targeting-seniors

  8. National Council on Aging. "The Top 5 Financial Scams Targeting Seniors." https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/

  9. Aura. "The Worst Scams Targeting Senior Citizens This Year." https://www.aura.com/learn/senior-citizen-scams

  10. Michigan Attorney General. "Grandparent Family Emergency Scam." https://www.michigan.gov/consumerprotection/protect-yourself/consumer-alerts/scams/grandparent-family-emergency-scam

  11. FTC. "Report Fraud." https://reportfraud.ftc.gov

  12. FBI Internet Crime Complaint Center. https://www.ic3.gov

  13. AARP Fraud Watch Network. https://www.aarp.org/fraud

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