THE PROBLEM

This involves financial advisors who trick seniors into buying financial products that are not in their best interest (e.g., annuities, stocks, mutual funds, insurance policies). This scam is insidious because these advisors often work for bona fide organizations, like large insurance companies. They use the legitimacy of their companies to get their foot in the door with seniors—and then convince them to buy products for their own financial benefit, not the senior’s. One trick is a sales pitch that focuses only on the positives of a product without disclosing the negatives.

This scam happens when handymen or building contractors sell their services to seniors and require payments upfront—but then do not start or complete the work.

These schemes involve people using unethical sales tactics to sell health-related products. This is devious as seniors are often concerned about their health and willing to invest big money to improve it. A common example is a person or a website making extreme claims about a product’s health benefits—like a product that “reverses aging,” “cures diseases,” “does it all for older adults,” or “is a scientific breakthrough based on Nobel Prize winning research.”

Using fake names and credentials, fraudsters pretend to be employees of well-known companies or officials from law enforcement, the Social Security Administration, IRS, or some other government agency. They concoct stories—often using fear or high pressure tactics—and convince seniors to pay fines to get out of trouble or buy products under false pretenses.

Scammers pretend to be a family member of an elder—usually a grandchild—and ask for money. These scams often take place over the phone or via texts or emails. The imposters act like they are in trouble and need money urgently and confidentially.

Some scammers start romantic relationships with elders so that they can take advantage of them financially. They act affectionately towards them to gain their trust, and then begin to influence them in unscrupulous ways. Sweetheart scams are also perpetrated through online dating apps or websites. These scammers develop fake relationships online and through phone conversations. Once they gain their target’s trust, they begin to run their scams.

Telemarketers call claiming that the target won a lottery, a free vacation, or other type of prize. The fake reward can be hundreds of thousands or even millions of dollars or an exotic vacation abroad. Scammers ask for personal information and ask that the senior pays for shipping, insurance, and taxes on the “prize” with the promise to receive it after those costs are paid.

An unknown caller claims that the senior has a virus or malware on their computer, and convinces them to give remote access to fix the “problem.” They use this access to gather personal information, download malware, or convince them to buy a corrupt product or service.