Multiplying Impersonation Scams Among Seniors

The U.S. Federal Trade Commission (FTC) has noted a significant rise in impersonation scams affecting older adults, with over $10,000 losses being reported more frequently.

According to the FTC, these scams predominantly fall into three categories:

Scam Techniques

• A fraudster masquerades as a legitimate organization representative and hints at suspicious activity in the victim’s account.




• An impersonator pretends to be a government official, informing the individual that their personal information is linked to illicit activities such as money laundering.




• A cybercriminal poses as a tech company representative, alerting the target of supposed security issues with their device.

Despite differing methods, the primary objective remains unchanged: initiating discussions designed to benefit financially from the victim.

Growing Financial Losses Among Victims

The FTC reported that losses for seniors who lost more than $100,000 increased eightfold over four years, escalating from $55 million to $445 million.

These tactics are highly effective. Scammers targeting both older and younger consumers have become adept at mimicking official communications from well-known brands like Best Buy, Amazon, and PayPal using advanced technologies that make detection difficult.

Advanced Phishing Tactics

In one recent incident, a phishing email appeared legitimate but actually contained instructions for transferring money. The only subtle clue was the “to:” field revealing the real sender’s email address.

“The PayPal phish-free phishing attack highlights how crafty cybercriminals are in social engineering scams,” said Suzanne Sando from Javelin Strategy & Research. “Following safety advice can lead consumers to overlook these schemes.”

Consumers often act on such messages because they appear legitimate, making it easier for the scammers.

Personalized Scams Targeting Seniors

Scammers tailor their attacks to exploit seniors’ less familiarity with technology. Phone calls remain a primary method, leveraging urgency and threats to gain compliance.

“Seniors are particularly vulnerable due to social engineering techniques used by cybercriminals,” said Tracy Kitten of Javelin Strategy & Research. “Urgency and the fear of penalties make victims feel they have no choice but to comply.”

Scammers capitalize on seniors’ trust in authority figures, using this to manipulate their decisions.

Tackling Scams

Several organizations are now working to prevent elder financial abuse. Nacha’s Payments Innovation Alliance has issued tools for vulnerable consumers and raised awareness about elder fraud.

The FTC recommends seniors not move money in any circumstance, stop all conversations with unknown parties, and verify the legitimacy of callers. Additionally, leveraging call-blocking technology can help reduce risk.