In an increasingly digital world, financial scams targeting seniors have become so prevalent that "elder fraud" is now a recognized term describing the systematic exploitation of adults aged 60 and older. With scammers developing increasingly sophisticated methods, understanding these threats is the first step toward protection.

The growing threat of elder fraud

The digital age has expanded opportunities for criminals to access personal information and even virtually enter homes through connected devices. According to AARP, government impersonation scams alone cost Americans over $394 million in 2023—a staggering 63% increase from the previous year.

"Scammers are becoming increasingly aggressive and creative," warns Mary Bach, chair of AARP Pennsylvania's Consumer Issues Task Force. "They rely on fear and urgency to push people into acting before verifying if a claim is legitimate."

The U.S. Department of Justice's Elder Justice Initiative works to combat this growing problem through coordinated efforts and educational campaigns. Their research has identified several common scams specifically designed to target seniors.

IRS and Social Security Administration impersonators

These sophisticated scams involve criminals claiming to represent government agencies. They typically contact victims by phone, claiming suspicious activity has prompted the suspension of their Social Security number or that they owe taxes.

The scammers often employ caller ID spoofing, making it appear that calls originate from legitimate government offices. They may demand immediate payment through unusual methods like gift cards or cryptocurrency to create urgency and panic.

AARP notes that legitimate IRS communication typically begins with official letters sent through the U.S. Postal Service—not phone calls, texts, or emails. In-person IRS visits are rare and scheduled in advance.

Tech support fraud

This increasingly common scam involves criminals posing as representatives from well-known technology companies who call to inform seniors that viruses or malware have been detected on their devices. Some claim the victim's computer has been hacked.

The Federal Trade Commission warns that these scammers request remote access to devices to "fix" nonexistent problems. Once granted access, they can view sensitive information or charge fees for unnecessary services. Some even call back later offering refunds for "overcharges," requesting banking details to complete the transaction.

Lottery and sweepstakes scams

In these schemes, callers inform victims they've won a foreign lottery or sweepstakes. Scammers typically identify themselves as lawyers, customs officials, or lottery representatives.

While many of these operations are based overseas, they follow a consistent pattern: winners must pay various fees, including shipping and customs duties, until their funds are exhausted. The promised winnings never materialize.

Romance scams

Dating sites, social networking platforms, and chat rooms provide fertile ground for romance scammers. These criminals build relationships with victims over time, establishing trust before requesting money for emergencies, travel expenses, or medical costs.

The FTC notes many victims are too ashamed to report these scams even after realizing they've been deceived. The Elder Justice Initiative emphasizes a crucial warning sign: online love interests who ask for money are almost certainly scam artists.

Protecting yourself 

David Kalinoski, AARP associate state director, offers simple but effective advice: "You must pause and verify any government-related contact. If you get a suspicious call or message, don't engage. Instead, hang up, close the door, and contact the agency directly."

Additional protection strategies include:

• Never share personal information via phone or email with unsolicited contacts
• Verify all communications through official channels using contact information from official websites
• Be skeptical of urgent requests for money, especially through unusual payment methods
• Report suspicious activity immediately to local law enforcement
• Use the AARP fraud helpline (1-877-908-3360) for guidance if you suspect a scam

Remember that legitimate organizations won't pressure you for immediate decisions or unusual payment methods. Taking time to verify claims is your strongest defense against fraud.

For more comprehensive information about financial scams targeting seniors, visit justice.gov/elderjustice or contact your local AARP chapter.