10 Financial Scams and Frauds That Every American Over 50 Needs to Watch Out For

Unfortunately, if you’re over 50, there is a good chance that financial scams will target you. For better or worse, scammers like to prey on older individuals who might be less familiar with updated technology and, therefore, unable to tell the difference between a scam and a legitimate concern. 

The sad reality is that the number of scams continues to grow as older adults become more susceptible to financial fraud, identity theft, and other cyber crimes. In 2023 alone, more than $3.4 billion in losses were reported due to senior fraud, a 14% increase in complaints from the previous year. 

10. Homeowner Scams

Any scam that involves the home will likely focus on reverse mortgage scams, especially those who are over 62 and can take advantage of reverse mortgages. Scammers will look to help you get easy access to the equity you have in your home so they can take this money. 

Staying Safe

Anyone looking for a reverse mortgage is likely already in need of financial aid, so their guard might be down regarding opportunities to fix their financial situation. It’s a giant warning sign if anyone tells you they need a power of attorney to finalize a reverse mortgage. The same goes for contractors who want to help with home repairs but need a reverse mortgage to make payments. 

9. Telemarketing Scams

When you consider that those over 50, especially seniors, make more purchases over the phone than any other age group, telemarketing scams are unsurprisingly prominent. This may take the form of someone posing as a charity looking for donations after a natural disaster strikes in the target area. 

Staying Safe

In this instance, the easy way to protect yourself is to never send money to anyone or any company you don’t know is legitimate. If a charity contacts you, request they send you material via email. Also, ask for contact information so you can reach out to this person after you have had time to consider everything. 

8. Investment Fraud

The last thing anyone over 50 wants to do is jeopardize their retirement savings, but the promise of get-rich-quick schemes can be very appealing. Things can get very interesting when a scammer tells you this opportunity is “risk-free” and that your investment will likely double or triple in a short period. 

Staying Safe

The bottom line is that you should do a lot of research before giving your money to anyone to manage. This includes actual financial advisors, but in the case of an investment fraud scam, you should carefully watch your account balances to look out for anything that seems out of the ordinary. 

7. Tech Support Fraud

There is no question that Tech Support fraud is one of the most common scams and one with a lot of media attention. It generally occurs when you get a pop-up message on your computer telling you you have a virus and to call “Microsoft” or another computer company to help remove it. 

Staying Safe

Along with installing an antivirus on your computer, you should also avoid any popups that appear on it. This is especially true for ads that contain language about downloading antivirus software, as they are likely looking to steal your information, specifically your banking information. 

6. Grandparents Scams

This is a genuinely awful scam, as grandparents over 50 may be contacted by someone posing as their grandchild. In these instances, the grandchild appears to be in distress, and the scammer will ask for money to help them and not tell anyone else in the family about it. 

Staying Safe

It’s completely fair to say that grandparents will quickly want to help a grandchild in need, but you should first hang up and contact your family. Make sure you find this grandchild and verify what you were told over the phone is accurate and that they need your help before you send money to anyone. 

5. Prescription Drugs

It won’t come as any surprise to learn that scams around health issues are significant concerns for anyone over 50. This scam feels very obvious as you receive a notification that a prescription drug you are taking can offer you lower pricing than you are currently paying. Scammers usually find this information by targeting your online search history so it feels like a personalized advertisement. 

Staying Safe

You should never take any new drugs offered by any website without talking with your doctor first. However, beyond that, you should be on the lookout for any website offering you pricing that is too good to be true. 

4. Health Insurance Scams

As you are over 50 and likely more worried about your health, the idea of being contacted by a Medicare representative or health official doesn’t seem so far away from the truth. However, this particular scenario will focus on people offering phony DNA services they can then use to bill tests to Medicare under your name and collect the money. 

Staying Safe

As a general reminder, you should never give out any information related to your health. The biggest takeaway is to regularly check your Medicare statements and report any suspicious activities to 1-800-MEDICARE if you think something on your bill is incorrect. 

3. Obituary Scams

This is a particularly horrible scam that happens frequently enough to be a concern. In the obituary scam, you will be contacted by someone asking you to attend a funeral service or meet up with them to discuss how to repay a debt this recently deceased individual owed them. 

Staying Safe

These scammers prey on families that publish obituaries in newspapers, so it’s essential to use as little personal information as possible. Don’t include contact information inside an obituary, as friends and family should know how to contact you. 

2. Sweepstakes Scam

This is an all-too-common scam that even caught up with a former FBI director in 2014. At this time, William Webster was told he had to pay $50,000 to claim $72 million from his sweepstakes winnings and a new Mercedes. Any instance in which you are told you need to make an upfront payment to cover sweepstakes warnings should be a giant red flag. 

Staying Safe

If you are ever contacted and told you won a prize, hang up the phone. If you are told something like you won the lottery and you have recently purchased lottery tickets, double-check the winning numbers online. Most importantly, remember that you should always protect your personal information. 

1. Sweetheart Scam

In the sweetheart scam, individuals over 50 who may be recently widowed or divorced are targeted through social media platforms or online dating sites. Any scammer looking to commit a crime in this category will create a persona for which their target falls head over heels. Eventually, this individual will need financial help to pay off rent, return to the United States, etc. 

Staying Safe

In 2023, the Federal Trade Commission reported that over $1.14 billion had been reported as lost due to the sweetheart or romance scam. This included a median loss of over $2,000 per person. Warning signs include anyone who says they can’t meet you in person or even video chat. Alternatively, if they ask you for money, they’ll ask for it through gift cards or by wiring money through Western Union. 

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