Elder scams and fraud is a growing problem, with millions of seniors falling victim to scams designed to manipulate someone’s trust while creating fear and confusion. Scammers know how to exploit human psychology and prey on someone’s emotions. Understanding how and why seniors are targeted is the first step in helping them avoid being taken advantage of.

When those aged 60 and older are scammed, the losses are significant. They’re also on the rise. The Federal Trade Commission reports that the number of older adults reporting losses of $100,000 or more has more than tripled since 2020. This figure could be even higher, as many people don’t file a report after being scammed. The National Council on Aging reports that those age 60 and older lost a combined $3.4 billion to fraud in 2023.

That’s why we offer this advice on protecting the elderly from phone scams. We’ll start by explaining why and how seniors are targeted, discussing the most common types of scams, and providing steps you can take to avoid them.

Why Are Seniors Prime Targets for Scammers?

Many scammers target seniors because they believe this population is vulnerable to being taken and may have retirement savings to steal. Scammers also target the elderly because they’re hoping to find victims who are suffering from cognitive decline and memory issues. Many seniors report suffering from isolation and loneliness, which leaves them vulnerable and receptive to someone trying to connect with them.

Common Elder Scams and Their Psychological Hooks

Scams with psychological hooks are the most common types of elder scams today. They all try to create an emotional hook to trap their victims. It might be the fear of financial loss, of a family member in trouble, or the allure of a phony romance.

The Tech Support Scam

This one relies on victims who are typically less savvy with technology than the rest of the population. According to the FBI, this was a top scam impacting older victims in 2022 and 2023. Older adults lost nearly $590 million to scams in 1993 alone.

A con artist contacts someone and claims to be from a recognizable company such as Microsoft, Apple, Dell, or Best Buy’s Geek Squad. The scammer might claim the victim’s computer was hacked or infected with a virus. The scammer convinces the victim to give them remote access to their computer or to download and install a nefarious computer program. A scammer might also ask for someone’s credit card and banking information, claiming they must bill the victim for their time.

Sometimes, a victim sees a pop-up window on their computer that claims it has a virus, has been hacked, or has a security risk. The message gives the victim a number to call for “tech-support,” or convinces them to click on a button or link that will install malware or give the scammer access to the victim’s computer.

Scammers use this to collect personal information they can use for identity theft, steal from the victim’s bank accounts, or lock up the victim's computer and demand a ransom.

The Impersonation Scam

This often involves a scammer pretending to be from the IRS, the Social Security Administration, Medicare, or law enforcement. The scammer claims the victim has unpaid taxes and could be arrested or lose their Social Security and Medicare benefits unless they pay immediately. They often use technology to create a “spoof” number on someone’s caller ID to make the scam seem more convincing.

These are also known as government impostor scams. The goal is to steal money from the victim directly and/or obtain personal information for identity theft. The scammer may demand payment using prepaid debit cards, gift cards, wire transfers, or handing a large amount of cash to a “courier.”

The Grandparent Scam

This is a variation of the impostor scam, and it preys on someone’s emotions and concern for their family. The FBI reports that this type of elderly scam is gaining popularity among fraudsters. Earlier this year, the Department of Justice charged 25 Canadians with running a multimillion-dollar grandparent scam that defrauded American seniors in multiple states.

Here’s how this elder scam works: a scammer uses the Internet and social media to discover the names of someone’s grandchildren and calls a victim claiming to be their grandchild. Sometimes, a scammer will say, “Hi grandma/grandpa, do you know who this is?” This tricks the victim into revealing the name of one of their grandchildren. Some scammers use artificial intelligence to impersonate a victim’s relative or just to make their voice sound younger.

The “grandchild” claims to have an emergency and asks for help paying for car repairs, medical bills, or rent. In some cases, the “grandchild” claims they were arrested and need bail. The scammer might also have someone else pose as an attorney or law enforcement officer who can help arrange “bail.”

The scammer begs the grandparent not to tell anyone because they’re embarrassed or, if they claim to have been arrested, they’ll claim a judge put a gag order on the case. The grandparent is tricked into making a wire transfer, sending money through gift cards, or handing cash over to someone posing as a bail bondsman or courier.

The Sweepstakes or Lottery Scam

A fraudster will contact the victim and claim they won a lottery or sweepstakes drawing, but there’s a catch: The victim must send money to the scammer to cover the “taxes” and/or “processing fees.” The victim is told to send money, cash, or gift cards to cover this. Sometimes, a scammer will contact the victim and offer a reason for the victim to send more money to cover additional costs. Scammers may claim to represent the victim’s state lottery or a well-known sweepstakes company, such as Publishers Clearing House.

The Romance Scam

Romance scams can affect all ages, especially seniors. The Federal Trade Commission (FTC) reports that Americans lost more than $1 billion to romance scams in 2023 and more than $1.2 billion in 2024. Scammers create fake profiles on social media and dating apps, where they connect with potential victims. Once someone takes the bait, the scammer offers plenty of attention over several days or weeks to build trust with their target. Many scammers claim they can’t meet in person because they live in another country or are in the military overseas.

Once a victim is emotionally invested, the scammer asks for a financial commitment. A scammer might offer to help the victim with investing, claim to have a financial or medical emergency, or propose marriage and ask the victim to send money for a plane ticket. The scammer will keep this going for as long as possible, while repeatedly asking for money and offering excuses why they can’t meet.

The Financial Services Elder Scam

Scammers contact a victim, claiming to represent a bank, a credit card company, a mortgage company, or a debt collection agency. They might send emails with a spoofed return address and a company logo to seem legitimate. The scammer claims the victim’s accounts were compromised and either asks for their password or sends them a link to change their password. They might ask for the victim’s Social Security and account numbers. A scammer might claim to be from a collection agency and threaten the victim with arrest unless they send money.

How to Protect the Elderly from Phone Scams

Scammers create a sense of urgency and fear in their victims, so someone acts before they have time to think about what they’re doing. That’s when you need to slow down, think about what you’re doing, verify if someone is legitimate, and rely on people you can trust to protect you.

Use the “Pause & Verify” Rule

The “pause and verify” rule, also known as the “10/2 rule,” says that if someone contacts you unexpectedly and wants you to make a rushed decision, take the time to think about what they’re asking for. Take 10 minutes to think about what’s happening and talk to at least two people you can trust.

If someone claims to be from a financial institution or the government, ask them for their contact information. You can also write down whatever number appears on your caller ID, but keep in mind that scammers have a way to use a phony number when they call you. You can then find out the real number for this company or organization and call them to verify what’s happening.

If someone claims to be a relative, such as a grandchild, and is asking for money in a hurry, try to avoid giving them any personal information. Instead, ask questions that only your grandchild would know. You might ask them to verify when you last saw each other, what you gave them for their most recent birthday, or to tell you an old family story. You could also call another family member to have them verify what’s happening, or call your grandchild at a number that you know is legitimate.

Set Up Call Blocking and Screening

Your phone company might be able to help you block unwanted calls or at least label them. Many cell phone and landline phone companies offer scam alerts in their caller ID information when they suspect a call could be a scam.

See if your cell phone provider will let you block calls from unknown numbers or any number that isn’t in your contacts. In many cases, these calls will be sent directly to your voicemail. You can then take the time to figure out whether to ignore, investigate, or respond to the call. The Federal Trade Commission (FTC) has useful information about online call blocking tools and resources.

Create a Trusted Contact System

A trusted contact is someone you designate as an emergency contact with your bank or some other financial institution. This person must be at least 18 years old and should be someone you trust and are in regular contact with.

This person could also have your power of attorney, although they’re in different roles. Someone with power of attorney can access your accounts and transact on your behalf. A trusted contact has a more limited role and is someone who could:

• Confirm your contact information and whether it’s changed.

• Your health status.

• Put your bank in touch with your other trusted contacts and your power of attorney.

With a trusted contact list, we would have someone to contact if we suspected fraudulent activity on your accounts and were unable to reach you. For example, if someone attempted an unusually large withdrawal from your account and you were in the hospital, your trusted contact could help us confirm whether you approved the transaction.

Never Share Personal or Financial Information

Don’t ever share personal information such as your Social Security number, date of birth, or account numbers until you’ve verified that the request is legitimate.

Use Financial Safety Nets

Setting up alerts can be a valuable tool for avoiding scams. You might ask your bank to send you alerts through email, text messaging, a mobile banking app, or all three. Consider setting up alerts for:

• Unusual account activities include alerts for any amount transfers over a certain dollar figure.

• Large purchase alerts on your debit card and/or credit card. If you rarely spend more than $100 on a single purchase, you can set up an alert for transactions above that amount.

• Large ATM withdrawals for any cash amounts above a dollar limit.

• Debit card alerts, such as someone using your card in an unusual way or location, such as another country.

Stay Safe. Stay Secure. Let Us Help.

Above all, remember that your Marion Community Bank bankers are on your team. If you ever feel uncertain about a phone call, email, or request for money, don’t act—ask!

Call us first at your local branch. We’ll help you determine if it’s real or a scam—protecting your financial security is our priority.

When in doubt, don’t give it out! Stay vigilant, trust your instincts, and rely on us to help keep your money safe.

You can contact us at any time or visit one of our branches in Marion, Selma, Maplesville, Jemison, Clanton, or Montgomery.

Bonus: Protect Yourself from Check Theft and Check Washing

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