Senior Scam
August 20, 2024

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Offers Tips to Help Older Adults Avoid Financial Scams and Exploitation

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Offers Tips to Help Older Adults Avoid Financial Scams and Exploitation
August 21st is National Senior Citizens Day
Follow the New York Department of State on Facebook, X and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics
Secretary Mosley: “A few simple steps and precautions can help consumers of all ages protect their personal information, money and livelihood.”

The New York Department of State’s Division of Consumer Protection is providing tips to help older adults avoid financial scams and exploitation in advance of National Senior Citizens Day on August 21st. Financial fraud and exploitation is one of the most prevalent types of elder abuse, and a 2023 report from the Federal Bureau of Investigation’s Internet Crime Report estimates that the annual loss to victims aged 60 years and older in the United States is assessed to be at least $3.4 billion dollars, the highest of any age group. The FBI’s Internet Crime Complaint Center also reported that losses due to investment scams took the top rank of any crime type. Investment fraud losses rose from $3.31 billion in 2022 to $4.57 billion in 2023, a 38% increase. Consumers over 60 years old lost the most money to investment scams in 2023, with these scams costing older adults over $1 billion nationwide.

“Losing money, retirement savings, possessions or benefits to scams can be very devastating to older adults who generally live on a fixed income,” said Secretary of State Walter T. Mosley. “On National Senior Citizens Day, help protect yourself and your loved ones by staying up to date on how to spot and avoid trending scams that target older adults. A few simple steps and precautions can help consumers of all ages protect their personal information, money and livelihood.”

New York State Office for the Aging (NYSOFA) Director Greg Olsen said, “NYSOFA is proud to work with the Department of State’s Division of Consumer Protection in offering resources to protect older adults against financial scams. All scams have one thing in common: they exploit your goodwill to obtain information that can be used to steal money, property, and other assets. If someone reaches out asking for money or personal information, always remember: close the link, hang up the phone, contact a trusted source instead.” 

Financial Scams Affecting Older Adults

Investment Scams

  • How to spot them: Scammers claim that you’ll make a lot of money quickly, easily and with little risk— all guaranteed through special financial management strategies, real estate, cryptocurrency or other investments. They’ll get your attention with free trainings or stories of how others have succeeded using their strategies. Then, you’ll be pressured to pay for the investment or more training programs which never bring return on investment.
  • How to avoid them:  If it sounds too good to be true, it probably is. Look out for red flags like guaranteed profits and claims that no risk, time or effort will be involved. Resist the temptation to commit quickly. Do your own research on any investment opportunities and be sure you get details in writing before committing. Avoid engaging with unexpected contacts. Scammers often initiate contact through unsolicited calls, emails or text messages. They appear to come from a reputable or trusted source but are attempts to trick consumers into revealing personal information or to gain access to their accounts.


Reverse Mortgage Scams

  • How to spot them: Not all reverse mortgages are scams, but scammers can pose as lenders to pressure you into signing contracts. These scam lenders often reach out unexpectedly, don’t clearly explain how the loan works, say you shouldn’t talk to other lenders or don’t fully explain the risks of real reverse mortgage loans. They may also pressure you to sign paperwork that you haven't had a chance to read and you don't fully understand.
  • How to avoid them: Don’t rush any decisions or assume a potential lender knows what financial decisions are in your best interest. Do your own research and shop around with multiple potential lenders. Learn more about how legitimate reverse mortgage loans work on the U.S. Consumer Financial Protection Bureau (CFPB) website at https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/. Learn more about other scams targeting homeowners in our comprehensive Homeowner Scams guide.


Money Moving Scams             

  • How to spot them: Scammers send bogus alerts about suspicious activity or unauthorized charges on your account. They may reach out claiming your financial account or bank account has been victim of fraud or criminal activity and the best way to protect your money is moving it into a new account.
  • How to avoid them: If you’re talking with someone making these claims, hang up the phone. Never transfer your money into another account to “protect” it. Never share verification codes since scammers can use the codes to steal your money. Know how your bank and financial institution operates. Always monitor any activity on your accounts directly with your financial institution. Contact your bank or financial institution directly using the number found on your statement or their official website.


Government Imposters

  • How to spot them: Scammers might spoof caller IDs or emails to look like real government agencies, but their requests will still line up with common scams: using fear and urgency to pressure you into action. Government agencies always initiate contact by mail. Government agencies are official in their communication and will never request personal or financial information through email or text, or ask for credit card numbers over the phone.
  • How to avoid them: If you get unexpected communications from government agencies that don’t seem right, end the call or don’t reply to the message. Reach out to the direct phone number or email of the government agency to confirm whether the communication you received is legitimate. Never share financial or personal information with any government agency without checking that they are who they say they are.


For more information:


About the New York State Office for the Aging
NYSOFA is committed to helping older adults and their caregivers become more knowledgeable of fraud tactics that target older adults. Recently, NYSOFA developed a new guide Don't Get Scammed: A Comprehensive Guide for Avoiding Fraud and Theft that provides tips, resources and more to help older adults avoid scams. Please also watch and share NYSOFA's recent livestream on Older Adults: Avoiding Scams and Fraud. Additionally, NYSOFA has partnered with the online community GetSetUp to feature helpful online classes such as Cybersecurity and Fraud , Scam Guard in an AI Era as well as an Elder Abuse Awareness Series. The classes are among hundreds available for older adults to meet with their peers for online learning and social connectedness, free for older New Yorkers. More classes can be found on the GetSetUp website.

About the New York State Division of Consumer Protection
Follow the New York Department of State on FacebookX and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.