You may have heard about the dangers of cybercrime and online scams. You might even know a friend or family member who has fallen victim. Seniors in particular are targeted by cybercriminals who exploit their inexperience to capture personal information like social security numbers and banking information or to rake away hard-earned money with legitimate seeming requests.
Understanding why seniors are considered a desirable target and learning about some of the most common cyber scams will help you identify and avoid danger to protect yourself or your business from cyber criminals.
What is a Cyber Scam?
A cyber scam is any scam that takes place or starts online; this can include text messages, emails, and clickable links found in advertisements or unfamiliar websites. Scams can be short, with only a few messages or interactions between the victim and the cybercriminal. Other scams build up a relationship over time; sometimes days or weeks are spent before a request for money or personal information is made.
Like any other scam, online scams follow a formula that appeals to our emotions, eliciting fear, care, urgency, or a sense of responsibility to convince victims to act and expose valuable information.
Why are Seniors Targets for Cyber Crime?
Unfortunately, there are many reasons why seniors are specifically targeted by cybercriminals. Foremost, seniors are at a disadvantage having not been raised with the technology available today. Four other common reasons are outlined below.
- Loneliness and a Want for Connection
More seniors than ever are living alone, with estimates showing as high as 28% of those 65+ living by themselves. This loneliness can be an overwhelming feeling. A friendly voice or email can easily gain the trust and attention of a senior who feels isolated, making seniors particularly susceptible to scams.
- Online Access with Limited Knowledge
According to data from the Pew Research Center, 73% of people over the age of 65 were connected to the internet. And while a large majority of Seniors have access to the internet through computers and smartphones now, they didn’t grow up with them. Sadly, this means they don’t always know what to look out for and miss the signs of possible scams. Sometimes a message or email seems questionable, but seniors who are used to being independent may not ask their friends or family to check a suspicious message or request.
- Seniors Have More Time on Their Hands
The Bureau of Labor and Statistics reports that adults over the age of 75 have nearly 8 hours of leisure time each day. With more time on their hands, seniors don’t mind talking to someone on the phone or answering questions over email. This makes seniors an ideal target because they engage with scammers and don’t immediately brush off calls or messages from unknown senders.
- Wealth and Assets
Individuals over 55 own over 70% of the wealth in the United States, according to this report from the Federal Reserve. In other words, seniors have money to steal. This makes seniors a prime target for scammers looking for a lucrative payday.
Types of Cyber Scams Affecting Seniors
Not only are seniors more likely to fall victim to cyber scams. Scammers have begun exploiting this fact by designing scams that are specifically aimed at seniors. The following are some of the most common scams reported.
- Classic Phishing Scams
Phishing is one of the most popular methods used by cybercriminals. Astra Security estimates that 3.4 billion phishing emails are sent every day. Scammers craft legitimate-looking email addresses and use logos to disguise themselves as trusted organizations, such as a bank or government agency. They may claim that an account has been compromised and offer solutions that require their victim to provide private and confidential information. Cyber criminals aim to collect SSNs, passwords, or banking data to gain access to accounts and send themselves money. Urgent language is used to trick the target into acting quickly without considering the source.
- Impersonation Scams
In this attack, scammers will pose as an authority figure. Bank representatives, law enforcement, and government agencies such as the IRS are impersonated because of the authority they represent. Victims are convinced by the scammer that there is legal trouble or something wrong with their bank that needs to be addressed. The scam artist uses their fake role to offer a solution. The scammer then demands payment or special access to banking information in order to “resolve” the problem.
- The “Grandparent Scam”
This scam exploits caring seniors by calling or emailing while pretending to be a family member, usually a grandchild, niece, or nephew. The scam artists ask for a money transfer to pay made-up expenses like lawyer fees or medical bills. The target is asked to keep the exchange private from other family members due to “embarrassment” about needing to ask for money. Once money has been wired or sent Peer to Peer, the victim has lost hundreds or thousands of dollars while the scammer disappears with the money. Learn more about Peer to Peer Scams and how to avoid them.
- Tech Support Scams
With this type of scheme, a scammer will act as a tech support rep from a trusted and well-known company like Microsoft, Apple, Android, or Google. This type of scam often happens over the phone or email but more commonly happens with pop-up ads that suggest a device is already infected, urging the victim to reach out to the scammer or download a malicious program. Scammers trick the targeted senior into granting remote access to the device or they get the target to provide credit card numbers to purchase software that “protects” devices.
- Cryptocurrency Scams
Scam artists target seniors and convince them that they need to invest and convert cash into cryptocurrency by depositing their money into ATMs or kiosks run by the scammer. Once the targeted senior deposits the money into the cryptocurrency account, the scammer transfers it to their own account, where it becomes virtually untraceable.
- Counterfeit Prescription Drug Fraud
Online pharmacies are becoming more and more popular, offering more affordable prices than brick-and-mortar pharmacies. Seniors may encounter drug scams offering even lower prices on prescriptions. After a victim places an order with their payment information, the product will likely never be delivered, or the drug delivered is not legitimate and instead is a counterfeit or potentially dangerous fake. To avoid this danger, people of all ages should only order medications from trusted sources accredited by the NABP.
Regardless of your age, it is important to stay vigilant when interacting online. Note that any message that elicits a strong emotion or sense of urgency could very well be a scam. Take time to consider how information is usually communicated and whether a message even makes sense. If in doubt, contact organizations directly through channels that you are already familiar with. For example, rather than clicking a link that claims your bank info was leaked, call your bank directly using a known good number to confirm the validity of the information claimed. For more tips on spotting scams, read our articles on common tax scams and other scams.
If you or a senior friend or family member you know is the victim of a cyber scam, report this to your bank immediately. In addition, consider freezing your credit and any involved cards to prevent fraudulent accounts from being opened in your name.
We are here to help keep your financial information secure!
Moody Bank wants to help keep you and your accounts safe and secure. Learn more about our industry-accepted standards for securing information and test your ability to spot a phishing scam. To learn more, contact one of our dedicated team members.
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