Identity theft is a growing concern, especially for seniors who may be more vulnerable to scams and fraudulent activity (due to various factors, like unprotected wealth, trust, loneliness, declining mental capacity, and more).
The FBI reports that seniors lose more than $3 billion each year to financial scams; the FTC’s most recent report shows that fraud and specifically senior identity theft (21.5%) make up the majority of reports received.
Imposter scams are the most common type of senior scam, with an estimated $2,667 million lost; credit card fraud was the most common type of senior identity theft in 2022, with more than 441,882 reported cases.
From unsolicited phone calls to suspicious credit card charges, it’s essential to know the warning signs to protect yourself or your loved ones. This guide will help you understand some of the red flags for senior identity theft you should know about and what steps to take if you suspect that you or your parent/grandparent/elderly loved one is a victim.
Why Are Seniors Targeted for Identity Theft?
Seniors are often prime targets for identity theft due to several factors:
- Less Familiarity with Technology: Many seniors are not as tech-savvy, making them more susceptible to online scams.
- Consistent Income Sources: Retirement funds, Social Security benefits, and pensions attract thieves.
- Trusting Nature: Seniors may be more likely to share personal information with strangers over the phone or online, especially if they are isolated and these individuals promise companionship or support.
Recognizing these vulnerabilities is the first step in protecting yourself or your loved ones from identity theft.
If you are a senior who has extensive assets, you need to make sure they are well protected in trusts, with strong passwords, or with other guards; making your money a hard target makes you a less attractive victim for identity thieves.
If you are an adult child or grandchild of a senior parent or grandparent who is not great with technology or who is losing mental capacity at all (forgetting things, etc.), you need to take steps to protect their information, such as working with a lawyer to shield their assets, helping them with digital security, and more.
Red Flags to Watch For
Most of the time, seniors and their families may not realize identity theft has occurred until after it is too late because they don’t know what to look for, or they don’t take action quickly enough because they don’t know for sure if what happened was identity theft or if they are just being paranoid. (Tip: you can never be too careful when it comes to your identity and your life savings!)
Here are some common signs that a senior may be a victim of identity theft:
1. Unfamiliar Transactions on Bank or Credit Card Statements
If you notice, on monthly bank and credit card statements:
- Unauthorized purchases
- Withdrawals you didn’t make
- Strange charges from unfamiliar vendors,
it’s a sign that someone may be stealing your/your loved one’s identity. Often, thieves will test out smaller charges to see if they go unnoticed before making big purchases. A practice of regularly reviewing your/your loved one’s monthly bank and credit card statements closely can help you prevent identity theft, but if you see this red flag, you need to act quickly to freeze the compromised account or card.
2. Calls or Letters About Accounts You Didn’t Open
If you/your loved one start receiving:
- Credit card offers for accounts you didn’t apply for
- Bills or statements from accounts you don’t recognize
- Calls from debt collectors for unfamiliar debts
These could indicate someone has opened accounts in your name. It’s a major red flag for senior identity theft!
3. Suspicious Phone Calls or Emails
Scammers often pose as:
- Representatives from government agencies (e.g., Medicare, IRS)
- Tech support claiming your computer has a virus
- Lottery officials asking for bank details to claim a prize
Never provide personal or financial information over the phone or email without verifying the source! If scammers are calling, it’s a sign that you or your loved one is at least a target, if not a victim of, senior identity theft.
Below are some of the most common senior scams to watch out for:
- Fake Romance Scams
Fraudsters often pose as romantic partners, initiating relationships with seniors online or over the phone. Once they establish trust, they fabricate urgent crises and ask for financial help. According to the FBI, these romance scams can be devastating, sometimes wiping out an individual’s entire life savings.
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Bogus Sweepstakes or Lottery Scams
These scams involve criminals claiming the senior has won a prize, but they must pay upfront fees such as taxes, processing charges, or shipping costs to receive it. Victims often send money, expecting a large reward that never materializes.
In this scheme, a scammer pretends to be a grandchild in trouble, claiming they need urgent funds for bail, medical expenses, or another emergency. They pressure the senior to act quickly and keep it a secret from other family members, exploiting the senior’s concern and love for their family.
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IRS or Government Impersonation Scams
Scammers pose as IRS agents or other government officials, threatening legal action or arrest unless immediate payment is made. The urgency and fear of legal trouble often lead seniors to comply without verifying the legitimacy of the claim.
In these scams, con artists pretend to represent tech companies, warning that the senior’s computer is infected with a virus. They ask for remote access or payment for fake repairs. Once they gain access, they steal sensitive personal or financial information.
4. Denied Credit Applications
If your or your loved one’s credit application is denied unexpectedly, it’s possible someone has damaged your credit score through fraudulent activity. This is another major red flag for senior identity theft – don’t dismiss it as a simple mistake without investigating quickly and contacting the correct credit reporting agencies!
5. Missing Mail
Identity thieves may intercept mail to steal account numbers, Social Security information, or checks. If important documents or regular bills are missing, that’s another red flag, and it’s time to investigate.
What to Do If You Suspect Identity Theft
If you notice any of the red flags above, take these steps immediately:
1. Contact Your Financial Institutions
Notify your or your loved one’s bank and credit card companies about suspicious activity. They can:
- Freeze your accounts
- Issue new cards
- Investigate fraudulent charges
2. Place a Fraud Alert on Your Credit Report
Reach out to one of the three major credit bureaus (Experian, Equifax, or TransUnion) to place a fraud alert on your credit file. This will make it harder for thieves to open new accounts in your name.
3. Check Your Credit Report
Request a free credit report from AnnualCreditReport.com and look for unfamiliar accounts or inquiries.
4. Report the Identity Theft
File a report with the Federal Trade Commission (FTC) at IdentityTheft.gov. This will help you create a recovery plan and provide documentation if you need to dispute fraudulent charges.
5. Secure Your Personal Information
- Change passwords for online accounts
- Shred sensitive documents before discarding
- Set up fraud alerts or credit monitoring services
6. Contact an Identity Theft Lawyer With Experience in Senior Cases
Identity theft is a big deal, and it needs to be handled with skill. A senior identity theft lawyer can take the paperwork, reporting, and communications off your hands, inform you of your legal rights, and advocate for you or your loved one to recover damages, reclaim good credit, and restore peace of mind.
How Loker Law, APC Can Help
If you or a loved one suspect senior identity theft, don’t navigate the situation alone, and don’t wait – the clock is ticking to save everything that you or your loved one has worked for. Our attorneys can help!
Loker Law, APC is an experienced consumer protection law firm located in Arroyo Grande, California. We exclusively focus on matters of identity theft and credit repair, handling identity theft cases, credit report disputes, and unfair debt collection, including senior identity theft cases. Our small, dedicated team takes a personal approach, working on a contingency basis, which means you only pay if we win your case!
Let us help you fight back against identity theft. Schedule a free consultation today to learn how we can protect your rights and guide you through the recovery process.
