Older adults are frequently targeted by scammers because criminals know they may have retirement savings, Social Security income, home equity, or other assets. Scammers often use fear, urgency, or promises of easy money to convince people to send money or provide personal information.
The scams can happen over the phone, through email and text messages, on social media, through dating websites, or even at someone’s front door. While anyone can become a victim, older adults who are less familiar with technology or who may be dealing with health or cognitive challenges can be particularly vulnerable.
Knowing the warning signs can make it much easier to recognize a scam before losing money.
Family Emergency Scams
One of the most common scams involves someone pretending to be a family member who needs money immediately. The scammer may claim to be a grandchild, child, or another relative who has been arrested, is stranded in another country, or is dealing with an emergency.
The caller may sound convincing, especially if they have obtained information about your family from social media. They may also tell you not to contact anyone else because they don’t want their parents or other relatives to know what happened.
Warning signs include:
- Someone claiming to be a family member who urgently needs money.
- A caller asking you to keep the situation secret.
- Requests for gift cards, wire transfers, cryptocurrency, or cash.
- Pressure to act immediately without verifying the story.
- A person refusing to let you contact the family member directly.
If you receive a call like this, don’t panic. Hang up and contact your family member directly using a phone number you already have. Do not use a number provided by the caller.
Tech Support Scams
Tech support scams can begin with a phone call, email, text message, or a pop-up appearing on your computer. The scammer may claim that your computer or smartphone has a virus or that your account has a serious security problem.
They may then offer to “fix” the problem. In reality, their goal may be to obtain your passwords, financial information, or remote access to your computer.
Never give a stranger remote access to your computer simply because they claim to be from Microsoft, Apple, your internet provider, or another technology company.
If you receive a suspicious warning, close the pop-up and contact the company through its official website or customer-service number. Do not call a phone number displayed in a suspicious pop-up.
Romance and Online Dating Scams
Romance scams can be especially damaging because they combine financial fraud with an emotional relationship. A scammer may create a fake dating profile and spend weeks or months building trust with the victim.
Eventually, the person may claim to have a financial emergency. They might say they need money for medical bills, a family emergency, travel, a car repair, or another unexpected expense.
A major warning sign is someone you have never met in person repeatedly asking you for money.
Be cautious if someone:
- Quickly becomes very emotionally attached
- Claims to be working or living in another country
- Always has an excuse for why they cannot meet in person
- Asks you to send money or gift cards
- Requests your bank account or credit card information
- Tells you to keep the relationship or financial assistance secret
If someone you met online asks for money, stop and talk to someone you trust before sending anything.
Social Security and Government Impersonation Scams
Scammers frequently pretend to be government employees. You may receive a phone call, text, email, or letter claiming to be from the Social Security Administration, IRS, Medicare, or another government agency.
The scammer may say that your Social Security number has been suspended, that you owe money, that your benefits are in danger, or that you could be arrested if you don’t make an immediate payment.
Government agencies generally do not demand that you pay a supposed debt immediately using gift cards, cryptocurrency, or unusual payment methods.
Watch out for threats such as:
“You will be arrested today.”
“Your Social Security number has been suspended.”
“You must pay immediately.”
“Federal agents are on their way.”
“Don’t hang up the phone.”
If someone claims to be from a government agency, hang up and contact the agency using contact information from its official website.
Contractor and Home Repair Scams
Home repair scams can become especially common after wildfires, floods, earthquakes, storms, and other disasters. California homeowners may receive unsolicited offers from people claiming they can quickly repair roofs, windows, fences, plumbing, or other damage.
Some scammers ask for a large payment upfront and then disappear. Others may perform unnecessary work, use poor-quality materials, or charge far more than originally promised.
Be cautious if a contractor:
- Shows up at your door unexpectedly.
- Pressures you to sign a contract immediately.
- Demands a large payment before beginning work.
- Claims permits aren’t necessary.
- Offers an unusually low price and demands immediate payment.
- Refuses to provide references or proof of licensing.
Take your time before hiring someone. Get multiple estimates, check the contractor’s license and references, and make sure you understand the contract before signing it.
Fake Inheritance and “You Won” Scams
Another common scam promises the victim a large amount of money. You may receive an email, letter, text message, or phone call claiming that you inherited money from a distant relative, won a lottery, or were selected to receive a large financial award.
The catch is that you must first pay a “tax,” processing fee, legal fee, delivery fee, or other charge before receiving the money.
This is a major warning sign.
Legitimate inheritances and prizes do not normally require you to send money to a stranger simply to release your supposed funds. Scammers may also ask for your bank account information so they can supposedly deposit the money.
Remember: If someone promises you a large amount of money but requires you to pay money first, be extremely suspicious.
IRS and Tax Scams
Tax-related scams are particularly important for older adults because scammers often use tax season to impersonate the IRS. A caller may claim that you owe back taxes and threaten you with arrest, deportation, a lawsuit, or the loss of your driver’s license if you don’t pay immediately.
Scammers may demand payment through gift cards, wire transfers, cryptocurrency, or other unusual methods.
The IRS does not operate by threatening taxpayers with immediate arrest or demanding that they pay a supposed tax bill through gift cards.
If you receive a suspicious tax-related call, don’t provide your Social Security number, bank information, credit card information, or other personal information. Instead, verify the situation independently.
How to Protect Yourself From Scams
The best defense against scams is to slow down. Scammers want you to make a decision while you are scared, excited, or under pressure.
If someone contacts you unexpectedly and demands money or personal information, take a step back. Don’t click suspicious links, don’t provide passwords or financial information, and don’t allow strangers to access your computer.
If someone claims to be a family member, government employee, bank representative, or technology company employee, independently verify who they are before doing anything.
A few simple rules can help:
- Don’t send money to someone you don’t know.
- Never give someone your password or security code.
- Don’t provide your Social Security number to an unexpected caller.
- Be extremely cautious with gift cards and cryptocurrency payments.
- Don’t allow an unknown person to remotely access your computer.
- Don’t let anyone pressure you into making an immediate decision.
- Talk to a trusted family member or friend if something doesn’t feel right.
If you believe you have been targeted by a scam, report it to the appropriate government agency and contact your bank or financial institution immediately if money or account information may have been compromised.
How Local Tax Can Help
Scammers sometimes target older adults by pretending to be tax professionals or government agencies. Having a legitimate tax professional you can contact can make it easier to verify whether a tax-related phone call, letter, or email is real.
Local Tax helps individuals and families with their tax preparation and tax-related needs in California. If you live in Southern California and receive a suspicious message claiming that you owe taxes or have a problem with your tax return, don’t panic or send money immediately. Take the time to verify the information and speak with a trusted tax professional.
Whether you live in Los Angeles County, Orange County, Riverside County, San Bernardino County, or another part of California, getting help from a legitimate tax professional can give you another resource when dealing with confusing tax issues.
