Common Scams Targeting Seniors
Seniors are frequently targeted by scammers looking to exploit their trust and financial situations. Below are some of the most common scams seniors should be aware of, especially when dealing with real estate transactions:
Real Estate Scams
- Fake Property Listings: Scammers create fake real estate listings for homes that either don’t exist or are listed without authorization. They often lure potential buyers or renters with attractive prices and demand deposits or personal information before disappearing.
- Fraudulent Buyers: In this scam, fraudsters pose as interested buyers, often using fake identities to initiate transactions. They may ask for sensitive personal information or try to commit wire fraud by redirecting closing funds to illegitimate accounts.
- Reverse Mortgage Scams: Reverse mortgages are an important tool for seniors, but they can also be used in fraudulent schemes. Scammers often target seniors with misleading offers, unnecessary fees, or even try to steal the home’s equity through illegal reverse mortgage practices.
Phone and Internet Scams
- IRS and Government Impersonators: Scammers may call or email seniors pretending to be from the IRS or other government agencies, demanding immediate payments for unpaid taxes or threatening fines. These scams often use fear tactics to extract money or personal information.
- Robocalls and Spoofing: Automated calls or spoofed numbers appear to come from legitimate sources, but they’re often used to convince seniors to hand over personal information or make payments for non-existent services.
- Phishing and Email Scams: Seniors may receive emails that look legitimate but are designed to trick them into providing personal details, login information, or banking data. These emails often mimic banks, service providers, or even government agencies.
Medical Identity Theft
Scammers steal seniors’ Medicare or insurance information to obtain medical services, drugs, or financial reimbursements in their name. This not only causes financial harm but can also disrupt legitimate healthcare for the victim.
By understanding these common scams, seniors can better protect themselves from fraud and avoid falling victim to these schemes.
Red Flags to Watch For
Being aware of common red flags can help you avoid falling victim to scams. Scammers often use these tactics to create urgency, manipulate emotions, or confuse you into making quick decisions. Here are the key warning signs to watch for:
Urgency and Pressure to Act Quickly
Scammers often create a false sense of urgency, claiming you need to act immediately to avoid a fine, secure a deal, or prevent legal action. Always take the time to verify the information before proceeding.
Requests for Untraceable Payments
Be cautious of anyone asking for payment through untraceable methods like gift cards, wire transfers, or prepaid debit cards. These methods are difficult to trace and recover, making them common tools for scammers.
Unsolicited Communication from Unknown Sources
If you receive unexpected calls, emails, or messages from people or companies you don’t recognize, be skeptical. Scammers often pose as legitimate companies or government agencies to steal your personal information.
Too-Good-to-Be-True Offers
If an offer seems too good to be true, it probably is. Scammers often entice their victims with deals that are unrealistically favorable, asking for personal information or financial details in return.
By recognizing these red flags, you can better protect yourself from scammers and make sure you’re dealing with legitimate professionals.
Steps to Avoid Being Scammed
While scams can be hard to spot, following these practical steps can help you avoid falling victim. By staying vigilant and working with trusted professionals, you can protect yourself and your assets from fraud.
Verify Listings and Buyers
Before making any real estate decisions, always verify that the property listings and buyers are legitimate. Work with a trusted real estate agent, like an SRES®, to ensure all information is accurate, and avoid deals that seem suspicious or too good to be true.
Register on the Do Not Call Registry
Reduce the number of robocalls and telemarketing scams by registering your phone number on the National Do Not Call Registry. This can help limit unsolicited calls that may lead to fraud attempts.
Use Trusted Professionals
When handling financial or real estate transactions, always work with licensed and verified professionals. An SRES® is specifically trained to help seniors navigate real estate safely, making them a valuable resource for preventing scams.
Stay Skeptical of Unexpected Requests
If you receive an unsolicited call, email, or message asking for personal information, financial details, or immediate payments, proceed with caution. Always take the time to verify the legitimacy of the request before responding.
By following these steps, you can minimize your risk of falling victim to common scams and ensure that your transactions are handled safely.
What to Do if You’ve Been Scammed
If you suspect you've fallen victim to a scam, acting quickly can help minimize the damage and protect your financial and personal information. Here are the steps to take if you believe you’ve been scammed:
Report the Scam
The first step is to report the scam to the appropriate authorities. Contact the Federal Trade Commission (FTC), the IRS, or other relevant agencies to file a complaint. Reporting helps prevent scammers from targeting others and may assist in recovering your losses.
Contact Your Bank or Financial Institutions
If you’ve shared personal or financial information, immediately contact your bank or credit card company to freeze accounts, block unauthorized transactions, and issue new cards or account numbers if necessary.
Change Your Passwords
Update your passwords on all your online accounts, especially for financial and email services. Use strong, unique passwords for each account, and consider enabling two-factor authentication for added security.
Block the Scammer
Block the phone number or email address of the scammer to prevent further contact. You can also report suspicious emails or messages to your service provider for additional protection.
By taking these steps, you can limit the potential damage from a scam and better protect yourself moving forward. Always stay vigilant and consult trusted professionals for advice when making major financial decisions.
Resources for Seniors
If you’re concerned about scams or want to learn more about how to protect yourself, here are some trusted resources that offer valuable information and assistance for seniors:
Federal Trade Commission (FTC)
ReportFraud.ftc.gov
The FTC’s online complaint center allows you to report fraud and learn about common scams targeting consumers. It also provides tips for protecting yourself from future fraud.
IRS Fraud Reporting
Treasury.gov/tigta
If you’ve received suspicious communication from someone claiming to be with the IRS, use this tool to report the scam directly to the Treasury Inspector General for Tax Administration (TIGTA).
Medicare Fraud
oig.hhs.gov
Seniors can report Medicare fraud and other healthcare-related scams to the Office of Inspector General (OIG) through this website. It also provides information about preventing medical identity theft.
Social Security Administration (SSA) Fraud Reporting
oig.ssa.gov
If you suspect Social Security fraud or receive suspicious messages about your benefits, this website allows you to report the scam and access resources to protect your Social Security information.
Eldercare Locator
eldercare.acl.gov
This government service helps seniors and caregivers find trusted local services, including housing, healthcare, legal assistance, and financial help. It’s a great starting point for seniors seeking help in their area.
These resources are designed to protect seniors from scams and offer support if you suspect fraud. Remember, if you ever feel unsure about a transaction or communication, consult a trusted professional for guidance.