How to Protect Yourself from Senior Financial Scams

Senior financial scams are on the rise across the United States, with scammers targeting older

adults through phone calls, emails, and even in-person interactions. The Federal Trade Commission (FTC) reports that seniors lose billions of dollars each year to fraud, making financial scams one of the biggest threats to older adults. In Tennessee, where nearly a fifth of the population is over the age of 65, scammers often take advantage of trusting individuals by posing as government agencies, financial institutions, or even family members. Understanding the most common scams and how to recognize them can help protect against financial loss.

Common Scams Targeting Seniors

Government impersonation scams are among the most frequently reported fraud schemes. Scammers pretend to be from the various governmental agencies, including the IRS, Social Security Administration, or Medicare, claiming that a victim owes money or that their benefits are at risk. They often pressure seniors into making immediate payments, sometimes requesting unusual forms of payment such as gift cards or wire transfers. The Social Security Administration has confirmed that they will never threaten benefits over the phone or demand payment without official written communication.

Another common scam involves fraudulent sweepstakes and lottery winnings. A senior may receive a call or letter stating that they have won a large sum of money but must first pay taxes or processing fees to claim their prize. Once the victim sends money, the scammer continues to request additional payments, leading to significant financial losses. Legitimate sweepstakes never require winners to pay upfront fees to collect their winnings.

Scammers also use fake family emergencies to manipulate seniors. A common tactic, known as the "grandparent scam," includes a caller pretending to be a grandchild or close relative in distress, asking for immediate financial assistance. The scammer may claim to be in jail or stranded in another country, urging the victim to send money without verifying the situation. The Tennessee Attorney General's Office has reported an increase in these types of scams, emphasizing the importance of confirming any emergency requests with other family members before taking action.

Tech support scams have also become more prevalent, with fraudsters calling seniors and claiming that their computers have been infected with a virus. They convince victims to grant remote access to their devices or pay for unnecessary software. Tech support fraud is particularly harmful to seniors, who often end up providing sensitive banking information or personal data.

Investment and financial advisor fraud is another area where seniors are frequently targeted. Scammers posing as financial advisors convince older adults to invest in fraudulent opportunities, often promising guaranteed high returns. Fraudulent investments can lead to devastating financial losses, particularly for retirees who depend on their savings.

Protecting Against Senior Financial Scams

Recognizing the warning signs of scams can help prevent financial exploitation. Government agencies will never call unexpectedly to demand payment or threaten legal action. Sweepstakes and lottery winnings should never require upfront payments, and family emergencies should always be verified before sending money. Tech support services will never reach out to consumers unsolicited, and financial investments should always be researched thoroughly before making any commitments.

For seniors and their families, protecting assets and financial security is a top priority. Johnson McGinnis Elder Care Law & Estate Planning in Nashville, TN, helps seniors understand their financial rights and legal options. Our team is here to provide trusted guidance. If you or a loved one needs assistance, contact Johnson McGinnis Elder Care Law & Estate Planning to learn how we can help.