Elder scams are increasing at an alarming rate. Older adults are among the most vulnerable when it comes to financial fraud, and after more than 25 years in the financial services industry, I can tell you that I’ve seen far too many of these situations affect families who never thought it would happen to them.

It’s easy to think, “How could anyone fall for that?” But the truth is, it happens far more often than most people realize.

To make matters worse, with the surge of AI, these scams have become far more sophisticated. The days of spotting a scam simply because of a typo or a poorly written sentence are long gone. Those obvious red flags just aren’t there anymore.

Let’s put the escalation into perspective. According to the Federal Trade Commission (FTC):

In 2020, U.S. consumers reported $3.3 billion in losses to scams.
In 2021, that number jumped to $5.8 billion.
By 2024, reported losses reached a staggering $12.5 billion.

That’s real, hard‑earned money. For some, it’s their entire life savings, gone before they even realize what’s happened. Behind those numbers are real people and real families. That’s why it is important to do everything you can to prevent your loved ones from being a part of these statistics.

What you can do to help protect your loved ones:

Your parents have spent a lifetime accumulating wealth. Helping protect it is one of the most meaningful things you can do for them. But let’s be honest, today’s scam landscape can be confusing, especially for older adults. Scammers are skilled at using fear, urgency, and tight deadlines to pressure people into making quick decisions.

That’s why knowing what to watch for and talking about it ahead of time can make all the difference.

Steps you can take:

Review the common red flags with your loved ones.
Reiterate not to click any links unless you know for certain it is legitimate.
Tell them if they are ever in doubt, ask. “Call me or text me before you respond or click anything.” Have them repeat this back to you!
Inform them not to be concerned with annoying you. You would rather they ask than get caught in a scam.
Set up safeguards for monitoring their accounts. You can set automatic alerts with most financial institutions, which will trigger a notification for major transactions or profile changes.
Remain vigilant and stay engaged.
Monitor their social media activity. Verify their privacy settings, and remind them to only interact with people they know.
Create a safe word that can be used by family members as a quick way to verify someone’s identity.

Knowing they have an advocate on their side is usually all the comfort they need. It gives them the power to be able to respond to a caller with a simple phrase like “I will have to check with my daughter first.” This alone will usually send the scammers on to the next victim.

Why are seniors an easy target?

They typically have money from their lifetime of accumulation.
They tend to be naturally trusting and polite. They feel the need to answer calls and respond immediately.
They may be lonely and socially isolated. An interaction with a stranger can fill that void.
They are experiencing a natural increase in diminished capacity/dementia.
They aren’t tech-savvy and are less familiar with risks associated with technology.
This group has a low rate of reporting fraud due to embarrassment and shame, which also makes them a desired target.

What are the red flags to look for?

Unsolicited communication (Click this link to get a free phone.)
Displays some sort of urgency (I need the money ASAP, or this must be handled today.)
Stresses secrecy (Don’t tell anyone.)
Asking for your credentials (Requesting a password, PIN number, SSN, or other personal information.)
They keep you on the phone, refusing to let you hang up or talk to someone else.

Types of Scams to be aware of:

Investment Scams

These scams promote “exclusive” opportunities or unusually high returns. They are usually tied to cryptocurrency, penny stocks, or alternative investments. If it sounds too good to be true, it usually is.

Lottery & Sweepstakes Scams

Victims are told they’ve won money, but must first pay taxes, fees, or processing costs to receive the prize. Legitimate lotteries never require upfront payment.

Imposter Scams

A scammer pretends to be someone trustworthy, often a relative in trouble, such as a grandchild needing bail, legal help, or medical funds. These requests are typically emotional, urgent, and may ask them not to tell anyone. This is a hard one for grandparents to say no to.

Text & Email Scams (Phishing)

These messages create a sense of urgency, claiming immediate action is required. They prompt you to click a link and enter personal or financial information. Then the scammers steal that information and use it to do financial harm.

Tech Support Scams

This scam typically starts with an alarming pop‑up warning claiming that your computer has been compromised. The scammer convinces the victim to allow remote access, claiming they can fix the issue. Granting that access gives them full control of your computer and your personal information, making it possible for them to steal data or access your accounts.

Romance Scams

Scammers build emotional relationships by providing companionship and gaining trust. Once the relationship is deepened, requests for money begin. These requests usually involve stories about emergencies, travel, or bringing the person to the U.S. This is a common scam that preys on a victim’s loneliness. Be especially vigilant if they have recently lost a spouse.

Conclusion

If you think a loved one has fallen victim to a scam, there are several courses of action. First and foremost, stop communicating with the scammer immediately. Be sure to update any passwords and review all account balances. If you are concerned that they have access to your bank account, you can close it or place a fraud alert with the institution. You can reach out to the major credit bureaus (Equifax, Experian, and TransUnion) to place a fraud alert or credit freeze. You can also file a complaint with the FBI’s Internet Crime Complaint Center or your local FBI field office.

Many seniors may feel embarrassed when they fall for a scam and may be afraid to talk about it. It’s important to constantly revisit this conversation, be empathetic, and have a strategy. It could be the most important thing you do for a senior loved one.

Disclaimer

This commentary is intended solely for informational and educational purposes and does not constitute legal, tax, investment, or accounting advice. It does not represent an offer to sell or a solicitation of an offer to buy any security, financial instrument, or investment interest. Any such offer or solicitation will be made only through formal offering documents and in accordance with applicable laws and regulations.

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