You may feel that your money is safe and that you'd never fall victim to a financial scheme — and neither would your loved ones. However, criminals constantly develop new strategies to separate people from their money — which makes staying vigilant crucial.

Older and vulnerable adults are the most frequent targets

Individuals aged 60 and over reported over 101,000 incidents of scams and fraud to the FBI’s Internet Crime Complaint Center (IC3) in 2023. Older adults may be more frequently targeted due to having accumulated savings, home ownership, and good credit. Additionally, they may be less likely to report fraud due to concerns about embarrassment or losing independence.¹

Vulnerable adults, including those with disabilities or cognitive impairments, are also at high risk due to their reliance on others for care and support.

Common financial schemes

Common scams often target older or vulnerable adults. Con artists instill fear ("If you don’t do X, then Y will happen") or create urgency ("Act now or regret it forever").

Investment scams were the costliest elder fraud in 2023, with losses exceeding $1.2 billion. Tech support scams, business email compromise scams, confidence and romance scams, government impersonation scams, and personal data breaches each cost victims hundreds of millions of dollars.¹

According to the U.S. Senate Special Committee on Aging, there are several types of fraud that are especially successful on older Americans: person-in-need and grandparent scam, financial services impersonation and fraud, tech support and computer scams, government imposter scams, and romance scams.²

Grandparent scams:

Scammers may impersonate a grandchild or law enforcement officer, even using AI to clone voices, to claim they need money for an emergency. They exploit emotions to trick family members into sending money.

Financial services and fraud scams:

Fraudsters may impersonate financial services firms, such as banks, debt collectors, or mortgage servicers. For example, they may pose as debt collectors to deceive individuals into paying non-existent debts. These fraudsters often resort to harassment or threats of penalties or imprisonment if their victims refuse to comply.

Government impersonation scams:

Government Impersonation Scams: Scammers pose as government officials from agencies like the IRS or Social Security Administration, threatening arrest or loss of benefits unless immediate payment is made.

Sweepstakes and lottery scams:

Victims are told they've won a prize but must pay fees or taxes upfront to claim it. These scams often involve repeated requests for money.

Tech support scams:

Fraudsters claim to be from tech companies, convincing victims their computers are infected and charging for unnecessary repairs.

Romance scams:

Scammers create fake profiles on dating sites, building relationships with victims and eventually asking for money under various pretenses.

Charity scams:

Exploiters pose as charitable organizations, especially after natural disasters, to solicit donations that never reach those in need.

Warning signs and protective measures

If you care for an older parent or family member, here are some suggestions to protect vulnerable adults:

• Monitor accounts for unusual transactions or changes in financial patterns
• Set up fraud alerts and transaction notifications
• Create a trusted contact on financial accounts
• Discuss common scams openly with family members
• Use call-blocking technology to reduce robocalls
• Verify requests for money or personal information through separate channels

Educate yourself against the various types of financial scams. You can do so by going to these three government websites that provide information on popular scams, tips to protect yourself, and how to report suspected fraud: The Federal Trade Commission, Consumer Finance Protection Bureau, and the Internal Revenue Service. Also, Snopes.com and FBI.gov list common scams

Try to become familiar with your loved ones’ finances. For example, what are their bills each month? Also, have a conversation about some things they should do or not do to mitigate their risk of being a victim of financial fraud.

Let them know these are precautions that you’re taking, too. And ask them if they’d like to have a trusted contact person to have as a backup on their financial accounts in case there are any red flags in the future.

If your loved one becomes a victim of fraud, report it to Adult Protective Services, seek help from your police department, and contact the U.S. Justice Department’s National Elder Fraud Hotline at 833-372-8311.

Fraud isn’t fair. And it seems especially unfair when it impacts vulnerable adults. However, the steps you take now can fortify your defenses and make you less susceptible to a financial attack.