1. Seniors lost more than $3 billion in 2020 to financial scams

The FBI estimates that senior citizens lose more than $3 billion each year to financial scams including romance scams and lottery and sweepstakes scams. The data indicates that in 2020 people reported losses of more than $3.3 billion to fraud - an increase of nearly $1.5 billion over 2019. As the world’s population continues to age, this number is only likely to rise.

2. Fraud and identity theft make up the most common report types

Fraud (46.3%) and identity theft (29.4%) make up the majority of reports received by the FTC. When it comes to fraud, imposter scams are the most common report type with nearly 500,000 in total. These totaled losses of almost $1.2 billion with a median loss of $850. With over 400,000 reported cases, “Government documents or benefits fraud” was the most common type of identity theft.

3. Senior citizens are less likely to report losing money to fraud

According to the FBI, senior citizens are less likely to report fraud. This is supported by figures from the FTC which show that while 44% of younger people aged 20–29 reported losing money to fraud, only 20% of older people ages 70–79 did the same. The FBI speculates that shame and fear of losing financial independence are the most likely reasons.

What are some common types of online scams targeting seniors?

Some common types of online scams that target seniors include:

• Phishing scams involve fraudulent emails or websites that appear to be from a legitimate source, such as a bank or financial institution. The aim is to trick the victim into disclosing personal or financial information, such as credit card numbers or login credentials.
• Fake online stores are set up to sell nonexistent or low-quality products. In addition, scammers may use false advertising and fake customer testimonials to lure victims into making a purchase.
• Investment scams convince victims to invest money in a fraudulent business venture or scheme. The scammers may promise high returns with little or no risk. They may also use false testimonials from fake "satisfied" customers.
• Lottery scams target victims with emails or letters claiming they have won a lottery or contest. The scammers may request personal information from the victim, such as their bank account number, in order to collect the "winnings."
• Charity scams involve fake charities that solicit donations from unsuspecting donors. The scammers may use emotional appeals or false claims of affiliation with legitimate organizations to trick victims into giving money.

Be aware of phone calls or emails soliciting you to provide any personal information whatsoever. If you have any doubts at all, hang up. And do not take calls from numbers you do not recognize. If it is a legitimate call, the caller will leave a voicemail, and then you can decide whether or not to return the call. Remember…if it sounds to good to be true, it probably IS!

Personal Note

Diana and I hope that you and your family enjoyed the holidays and that 2023 is starting of well! Our holidays were quiet allowing us to reflect on all that we are grateful for – our health, our families, living in San Diego ☺, and our wonderful clients. We appreciate the trust you put in The Medicare Answer Guy. Please feel free to call anytime should you have questions about your Medicare needs.

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