The holiday season brings warmth, generosity, and, unfortunately, a spike in financial scams—especially those targeting older adults. With many seniors having spent decades building financial security, they are attractive targets for fraudsters who exploit trust, loneliness, or cognitive decline. According to the Federal Trade Commission (FTC), adults aged 60 and older lost more than $1 billion to fraud in 2021 alone. The most vulnerable? Those over 80, who suffered a median loss of $1,500.
If you’re worried that your parents or elderly relatives could fall victim to investment scams, the good news is there are steps you can take now to protect them.
Start the Conversation Early
Talking about money—especially fraud—can be tough. But one of the most powerful tools in protecting loved ones from scams is open dialogue.
“Discussing scams can be easier since we’re all targets,” says a representative from a senior-focused financial protection service. By sharing personal stories or news about scams, you can bring up the topic in a natural and respectful way. Use specific examples, like:
- A fake text from a “grandchild” in trouble
- A stranger asking for money on Facebook
- An email claiming to be from a trusted bank requesting urgent account verification
These real-world examples help make the threat feel more immediate and recognizable. With scams becoming more sophisticated—especially with technologies like Generative AI mimicking voices or writing styles—education is key. Once a scam has succeeded, the damage is harder to repair.
Common Scams That Target Seniors
Being aware of scam types is the first step in preventing them. Some of the most frequent tactics used against older adults include:
- Telemarketing Fraud: Unsolicited calls with promises of prizes, investments, or fake charities.
- Phishing Attacks: Emails or texts that look official but are designed to steal personal or financial information.
- Identity Theft: Fraudsters use stolen information to access bank accounts or apply for credit.
- Home Repair Scams: Overcharging for unnecessary or poor-quality repairs.
Use news reports or local warnings to make these schemes more relatable. Trusted resources like the FTC or AARP offer detailed scam breakdowns and guidance on what to do if you suspect something’s wrong.
Keep the Lines of Communication Open
Creating a supportive and judgment-free space for conversation can make all the difference. Victims of scams often feel embarrassed, ashamed, or even fearful of losing independence. By checking in regularly and encouraging open discussions, you give your loved ones the confidence to speak up if something feels off.
Empathy is key here. This isn’t about control—it’s about empowerment.
Tools and Tactics to Prevent Financial Exploitation
Take proactive steps to create a layered defense against scams:
- Let unknown calls go to voicemail
- Freeze credit to prevent fraudulent loans or accounts
- Use strict privacy settings on social media
- Set up financial alerts for suspicious transactions
- Assign a trusted person to help monitor accounts, if appropriate
- Explore legal protections, like a power of attorney or revocable trust
By combining these measures, you reduce the risk of fraud slipping through unnoticed.
Know the Red Flags
Here are a few warning signs that could indicate fraud:
- Sudden changes in financial behavior or secrecy
- Inability to cover basic expenses despite stable income
- A spike in unknown calls, texts, or emails
- Requests for secrecy or urgency from supposed officials or relatives
If something seems wrong, don’t hesitate to report it. Contact the local police, the FTC, or reach out to resources like the AARP Fraud Watch Network Helpline.
When It’s Too Late—Turn to the Right Legal Help
Even with precautions, fraud can still happen. If your family member suffers financial loss because of a dishonest stockbroker, financial advisor, or investment professional, you don’t have to face the aftermath alone.
The investment fraud attorneys at Weare Indy have been fighting for victims since 1999, recovering hundreds of millions of dollars through settlements and verdicts against unethical advisors, banks, and brokerage firms.
If you or someone you love has been harmed by financial misconduct, reach out today. Weare Indy offers free consultations to help you understand your legal options and begin the recovery process.
Protecting your family starts with awareness. The earlier you act, the better your odds of avoiding financial heartache down the line.
