Every year, thousands of older Americans fall victim to elder fraud schemes. According to the FBI’s Internet Crime Complaint Center, people over 60 lost $1.68 billion to scams in 2021.
The FBI’s Washington Field Office has launched a campaign to educate older people, their caretakers, and their families about elder fraud schemes, including romance scams, non-payment/non-delivery schemes, tech support scams, and timeshare resale schemes.
“Elder fraud schemes target some of this country's most vulnerable people — devastating them financially and often emotionally,” said Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division. “The FBI and our partners are committed to educating older Americans and their caretakers about these heartbreaking scams to prevent them from happening. You can only protect yourself and your loved ones if you know how to recognize—and report—fraud.”
Criminals target people over 60 because they are often financially stable, more trusting, and less likely to report crimes. As the older population in this country grows, scammers are likely to continue targeting older Americans.
Common Elder Fraud Schemes
Romance Scams
In romance scams (also known as confidence scams), criminals create fake profiles on dating sites or social media platforms to form relationships with victims. They leverage these relationships to manipulate and steal from victims—and often break their hearts.
Romance scams are one of the most common scams reported to the FBI. The IC3 has specifically warned about a rise in reports of romance scammers defrauding victims through cryptocurrency schemes.
Protecting Yourself from Romance Scams
- Think twice before you share personal information online. Scammers can use details shared on dating sites and social media platforms to better target victims.
- Beware of online suitors who try to isolate you from your family or friends or who ask you to send inappropriate photos or financial information that they could later use to extort you.
- Don’t send money to someone you’ve never met in person.
In non-delivery schemes, a buyer—the victim—pays a seller for a good but never receives it. In non-payment schemes, the roles reverse: A seller—the victim—ships a good to a buyer but never receives payment.
Many older Americans have recently fallen victim to non-delivery/non-payment schemes because the COVID-19 pandemic forced them to shop online for the first time. Some of these victims reported ordering goods from links advertised on social media and either receiving nothing or receiving something different than the advertised product.
Protecting Yourself from Non-Delivery/Non-Payment Schemes
- Before you make an online purchase, check if the retailer and its website are legitimate.
- Beware of websites that use top-level domains like .club or .top instead of .com.
- If possible, purchase goods online with your credit card because you can often dispute the charges if something goes wrong. Ensure transactions are secure before you share your credit card number.
In tech support scams, fraudsters pose as customer or tech support representatives. They may call, email, or text their targets and tell them they need to fix problems with their devices.
A scammer can also trick victims who have legitimate technical problems by paying to have a fraudulent company’s telephone number or website in search results. When victims search for customer support online, they may inadvertently see one of these fake ads.
Legitimate customer and tech support representatives won't initiate unsolicited contact with customers. They won’t demand immediate payment or require payment via mailed cash, prepaid cards, or wire transfers either.
Protecting Yourself from Tech Support Scams
- Keep your devices and software up to date.
- Don’t give unverified people financial information or remote access to your devices or accounts.
In timeshare resale schemes, scammers pose as representatives of timeshare resale companies and make unsolicited contact with owners of timeshare properties. Some promise to pay owners for their timeshares, while others claim owners are entitled to valuable shares of stock in connection with their timeshares—shares that they offer to liquidate in exchange for a commission.
Fraudsters have various methods to make themselves seem legitimate. Some design websites that mimic real companies’ websites; others file fraudulent documents with state or local officials. Some scammers even give victims official-looking documents, including contracts and title paperwork.
Timeshare owners should beware if they receive unsolicited calls, emails, letters, or texts about their timeshares.
Protecting Yourself from Timeshare Resale Schemes
- Research resellers before you decide to work with them and deal only with licensed real estate agents and brokers. Ask if the reseller’s agents are licensed to sell real estate where your timeshare is located.
- Don’t sign a contract until you know the details of its terms and conditions, e.g., the services the reseller will perform, the fees you will have to pay, etc.
- Beware if a representative asks you to pay money up-front in order to obtain funds or property to which they claim you are entitled or if they request you wire money in connection with your timeshare.
