With advancements in technology, scams are on the rise, and seniors are often prime targets. The team at American Benefit Services has seen that these scams are becoming more sophisticated and harder to detect, so knowing what to look for and understanding these common scams can help you protect yourself better.
1. Medicare and Health Insurance Scam
Fraudsters impersonate Medicare representatives to steal personal information. They may also promote fake services at mobile clinics, billing Medicare and keeping the funds for themselves.
By guarding your Medicare number closely (as well as all your medical and personal information), you can better keep your personal information private. Don’t give out any information unless you are certain you are speaking to an official Medicare representative. Medicare does not call you uninvited to ask for any personal information. Calls requesting your health insurance or personal information should not be trusted.
If you do receive a call from someone claiming to be a health insurance provider or from Medicare, hang up. You can then call the company back using a phone number from a previous statement or from the company’s official website to ensure you are not being scammed.
You can also check your Medicare Summary Notices (MSNs) or Explanation of Benefits (EOBs) for any suspicious charges. Also, be cautious of free services someone may be offering you. You’ll want to verify anything offered to you with Medicare directly first.
2. Grandparent Scams
Scammers call seniors pretending to be their grandchildren or other family members in distress, asking for money to be sent immediately for emergencies like bail or medical expenses.
Scammers can be very convincing. They may know a little or even a lot about you. Getting a call from a loved one in distress can be very scary, but try to stay calm. Scammers thrive on creating a sense of urgency and panic. You’re less likely to think clearly when you’re upset, and therefore
more easily manipulated by what you’re being told. Be sure to take a moment to think through what is being said so you can figure out the best way to proceed with the conversation.
Always verify the caller before sending money or giving out any information. You should contact your grandchild directly or another family member who can verify the situation first. You can also ask the caller questions only your grandchild or family member would know the answers to or use a code word only your family knows and understands.
3. Investment Scams
With seniors trying to build up and save money for retirement, scammers will offer high-return investment opportunities with little risk. These investment scams can involve financial products, charitable gift annuities, romance scams from dating services, sweepstakes or lottery scams, tech support fraud, and many more.
You should always be skeptical of any investment that promises guaranteed returns or seems too good to be true and be especially careful of unsolicited offers. Instead, do your research first before buying into any offer or opportunity. You can check the credentials of the person offering the investment by verifying their licensing and disciplinary history through the Financial Industry Regulatory Authority (FINRA). Seek advice from a trusted financial advisor. Ask questions and double-check the answers you are given.
Be willing to take your time and don’t rush into any decision. Keep your sights set on your financial goals, and make sure that if you do decide to invest, you are doing so through a trusted and proven company.
4. Telemarketing and Phone Scams
Similar to investment scams, if you receive a phone call from someone selling products or services, or someone trying to solicit donations, you should be skeptical and do your research on the company, person, or organization first. In some cases, scammers will pose as a government agency, such as the IRS, and demand payment for back taxes you ‘owe,’ or someone from Social Security claiming that your SSN has been suspended and needs to be verified.
First and foremost, if you suspect the call is a scam, hang up immediately. Legitimate organizations will not pressure you into making a decision over the phone. You can also register your number with the Do Not Call list, which can help reduce the number of unsolicited calls you receive.
Most importantly, never give out personal or financial information over the phone unless you initiate the phone call and trust the organization. If you receive a call and you think it may be real, you can always end the call, do your research, double-check the number, person, or organization that initiated the call, and call them back using the contact number listed on their official website.
5. Internet and Email Scams
With so many companies using websites to do business and emails to communicate with their customers, it’s easy for scammers to create fake websites designed to steal personal information or install malware on your computer. Emails are also a way scammers use a tactic called phishing, where the email appears to have come from a legitimate company or government agency you may already be familiar with. These emails may prompt you to ‘verify’ or ‘update’ your personal information.
Make sure your computer is protected by installing security software and keeping it up to date. This will help protect you from malware, viruses, and other threats. Be cautious, however, of pop-up browsers you may see on your screen telling you to update or download security software —these could also be scams that will instead upload a virus to your computer. Always use trusted and verified software.
Don’t click on links or download attachments from unknown or suspicious emails. You should verify the sender’s email address and be aware of signs of phishing, which can include spelling errors or odd phone numbers, unusual requests, offers that are too good to be true, suspicious attachments, urgent or threatening language, and more.
It’s always a good idea to have strong passwords in place; make sure they’re complex by using both uppercase and lowercase letters, numbers, and symbols. Avoid using the same password for multiple accounts and change them regularly.
The best way to protect yourself from scammers is to stay informed and alert. You can easily research types of scams and how they are being used to target seniors or talk to your family or someone you trust who can help you spot and avoid potential scams.
Review your accounts regularly, looking at bank and credit card statements or insurance summaries for any unauthorized transactions or unfamiliar activity.
Always trust your instincts—if it doesn’t feel right, it probably isn’t. If something looks like a scam or you believe you’ve been scammed, report it to the authorities immediately. Remember, taking a moment to verify and ask questions can save you from significant financial and emotional distress.