Financial exploitation of older adults is a growing concern, and scams are becoming more sophisticated. Fraudsters now use text message scams, phone number spoofing, and fake social media ads to steal money and personal information. According to the National Council on Aging, financial fraud costs older adults at least $36 billion annually, and that number is rising as scams become harder to detect.

Whether the perpetrator is a stranger, a caregiver, or even a family member, financial exploitation can have devastating consequences. Being aware of common scams and taking preventive measures can help protect yourself or a loved one.

The Rise of Digital Scams Targeting Older Adults

Text Message and Phone Scams

Scammers frequently use spoofed phone numbers and fraudulent text messages to impersonate banks, government agencies, and even family members. These messages may claim that an account has been compromised, that immediate action is needed to avoid penalties, or that a loved one is in trouble and needs money.

Common phone and text scams include:

• Fake bank fraud alerts asking for account login information
• Calls pretending to be from the IRS demanding payment
• Scammers posing as grandchildren in distress, asking for money
• Robocalls claiming to offer reduced credit card interest rates

Social Media and Online Shopping Scams

Fraudulent advertisements on platforms like Facebook and Instagram often promote counterfeit or non-existent products. Scammers may also create fake social media profiles to build relationships with older adults before requesting money.

Red flags of social media scams include:

• Ads for products from unknown brands with few or no legitimate reviews
• Messages from strangers that quickly turn into requests for financial assistance
• Investment opportunities promising “guaranteed” returns

Email and Phishing Scams

Phishing emails are designed to look like they come from trusted institutions, such as banks or government agencies. These emails often request sensitive information or contain links that install malware on a victim’s device.

Signs of a phishing email include:

• Unexpected requests for personal or financial information
• Urgent language demanding immediate action
• Poor grammar, misspellings, or suspicious sender email addresses

Warning Signs of Financial Exploitation

Financial exploitation is not always obvious, and it can happen gradually over time. Understanding the warning signs can help identify and stop fraud before it escalates.

Common red flags include:

• Unusual banking activity, such as large withdrawals or new names added to accounts
• Unpaid bills despite having sufficient funds
• Sudden changes to legal or financial documents
• A new “friend” or caregiver who isolates the older adult
• Confusion about financial transactions or missing money
• Unplanned refinancing of a home or property title changes
• Excitement about an unexpected lottery or sweepstakes win that requires upfront payment
• Requests for money via gift cards, wire transfers, or cryptocurrency

For more information about financial exploitation warning signs and cybersecurity best practices, download our free financial cybersecurity guide.

How to Protect Yourself or a Loved One

• Verify Before Taking Action: Always confirm financial requests with a trusted source before responding to texts, emails, or phone calls.
• Enable Strong Security Measures: Use multi-factor authentication for financial accounts and create unique, strong passwords.
• Limit Access to Personal Information: Only share financial details with trusted individuals and regularly monitor accounts for suspicious activity.
• Be Aware of New Scam Tactics: Scammers are now using AI-generated voices and deepfake technology to mimic family members or officials. If something feels off, take time to verify before responding.

What to Do If You Suspect Financial Exploitation

If you or someone you know may be a victim of financial fraud, take action immediately:

• Report to Adult Protective Services (APS): Each state has APS agencies that investigate financial abuse.
• Notify Law Enforcement: Contact your local police department to file a report.
• Monitor Bank Accounts: Report any suspicious activity to the bank immediately and request a freeze on accounts if necessary.
• Call the National Elder Fraud Hotline: The U.S. Department of Justice has a dedicated helpline at 833-372-8311 for elder fraud cases.

Final Thoughts

Financial scams are evolving, and awareness is the first line of defense. By staying informed and taking precautionary steps, you can protect yourself and your loved ones from financial exploitation.

By being vigilant, we can help protect older adults from financial exploitation and ensure their financial security and well-being.