From shopping to banking to enrolling in health care, more of our world moves online every day. This digital shift, while convenient, also brings with it a significant increase in attempted fraud, scams, and identity theft. 

Anyone can be a victim of these malicious attempts, but older adults are often targeted since they usually have significant savings, own their property, and have established good credit scores. In fact, from 2021 to 2023, 75% of adults ages 50-80 reported experiencing a scam, and 30% experienced fraud, according to the National Poll on Healthy Aging. Additionally, the Bureau of Justice Statistics found that adults 50 years of age and older represented almost 50% of the 23.9 million victims of identity theft in 2021. 

Understanding how to recognize a scam can help you protect yourself, your personal information, and your finances. In this article, we’ll cover tips on how to avoid scams, details on some of the most common attempts, and tips on protecting yourself from bad actors.

How To Spot and Avoid a Scam 

In 2023, consumers reported losing over $10 billion to fraud and scams, a 14% increase from 2022. While investment scams led to the largest financial losses, imposter scams, online shopping scams, and fake prizes/sweepstakes were the top three fraud attempts out of the 2.6 billion reported in 2023. 

As fraud reports rise, it’s important to be informed about what these attempts look like and how to protect yourself. Knowledge can be your best defense in the fight against online scams. 

Common Scam Attempts and Tactics

There are dozens of different schemes that scammers use to trick people, but they typically employ similar tactics. If you receive:

• An unsolicited call, text message or email,
• A message that pressures you to act quickly or face negative consequences,
• A message from an unknown contact, an email address with random letters and numbers, or an email address similar to, but not exactly, a reputable company,
• Or a message that has noticeable spelling or grammatical errors, 

Someone may be attempting to scam you. Be wary of such communications and always verify requests directly with the sender. 

With these tactics in mind, here are some of the most common scams and tips on recognizing them. 

1. Phishing emails

In phishing emails, scammers impersonate legitimate organizations like banks and government agencies to trick you into sharing sensitive information — usually passwords, credit card numbers, or social security numbers. 

Phishing scammers often tell you to act immediately, or you’ll face consequences like locked accounts or financial penalties. Typically, they’ll try to get you to click a fake link or download a suspicious attachment. If something about an email looks wrong, trust your gut and contact the sender directly. 

2. Imposter scams

Like phishing attempts, imposter scams will use impersonation to get your information. Some of the most common imposter scams include:

• Family emergency: Pretending to be a relative or friend who’s in trouble and needs money urgently. 
• Social media romance: Creating a fake profile and building a relationship to ask for financial help under false pretenses. 
• Tech support: Posing as an agent at a company like Apple or Google and claiming your computer has a virus. 
• Debt collector: Posing as representatives for fake debt collection companies and claiming you have an outstanding payment.

Most of these scammers will use urgency and fear to pressure victims into making quick decisions without verifying the situation. 

3. Online shopping scams

In an online shopping scam, a fraudster creates a fake website, online store, or advertisement that appears legitimate. They may even sell real products that are counterfeits of name brands or poorly made versions of popular items. Typically, the websites or sellers will use fake reviews and offer suspiciously low prices.

One of the biggest red flags for this type of scam is the payment method. Avoid using any site that asks you to pay with a money order, preloaded money card, or wire transfer. 

4. Sweepstakes, contest, or prize scams

Sweepstakes, contests, and prize scams happen when a bad actor contacts you, usually out of the blue, claiming you’ve won a prize or a sum of money. To claim it, however, they may require personal information or some kind of payment — also known as an advanced fee scam. These scammers rely on your excitement to trick you, hoping you’ll get too caught up in the moment to verify details. 

If you find yourself in this situation, you should contact the alleged organization directly, especially if you didn’t enter any contest in the first place. If there’s no company name or additional contact information, there’s a good chance it’s a scam. 

5. Vacation or timeshare scam

This type of fraud occurs when scammers trick people into paying for vacation deals, rentals, or timeshare opportunities that are either nonexistent or misleading. They often exploit people looking for good travel deals or potential property investments by posing as salespeople and offering prices that are too good to be true. These scammers may use high-pressure sales techniques and pretend to be credible by creating official-looking documents and elaborate websites.

Before you buy any vacation package, rental, or timeshare, research the company thoroughly. Check third-party sites for reviews, and consider contacting hotels or property owners directly. 

How to Protect Yourself From Scams

Scams may seem scary, but you can avoid them by being cautious and knowledgeable.

Here are a few simple precautions that can help you protect yourself and your information. 

1. Verify phone calls before sharing information. If you have to share information over the phone, call the company or organization directly, especially if the call is unsolicited. 
2. Double-check emails and texts before clicking anything. If someone unexpectedly contacts you and asks for personal information or urges you to click a link, think twice before taking action. Don’t respond directly or give them any information, but independently look up the organization’s official information and reach out to them through secure channels. 
3. Practice good password etiquette. Make sure your online accounts are protected with strong passwords, and try not to repeat the same password for multiple accounts. Consider using a password manager service to help you safely store and access your passwords in one convenient location. Two-factor authentication, which requires a second form of verification in addition to your password, can provide an extra layer of security. 
4. Be skeptical of messages that seem too good to be true. Scammers often promise prizes or free money in exchange for a small fee or your personal information. Be wary of any messages or offers like this, and resist the pressure to act immediately. If the message is from an organization, you can contact them directly or ask someone you trust for their opinion. 
5. Monitor your finances and credit regularly. Try to get into the routine of checking your statements for any unauthorized transactions or suspicious payments. If you spot something, report it immediately, and you can usually reverse the charges. Additionally, you might consider using an identity theft monitoring service that keeps an eye on your credit report and notifies you of any suspicious activity. 

Make sure to report any scams or identity theft attempts to the FTC as soon as possible. 

How To Spot Medicare Fraud

To avoid falling victim to Medicare fraud, it helps to know what authorized representatives can and cannot do. If someone doesn’t follow the federal guidelines for Medicare plans, there’s a good chance they’re trying to scam you.

Legitimate Medicare representatives cannot:

• Show up at your home without an invitation to sell you a plan.
• Enroll you in a plan without your consent.
• Give you a sales pitch in healthcare settings like exam rooms or pharmacies.
• Charge enrollment fees beyond the standard carrier fees, which average around $15-$25. 
• Pressure you into choosing a specific plan.
• Use biased language like “the best” to promote their plan.

If you’re interested in learning more about Medicare and Medicare Supplement Insurance, you can schedule an appointment with a licensed agent to discuss plans you’re interested in, get plan materials, and start the enrollment process. 

Medicare fraud doesn’t only happen during enrollment, though — you can also fall victim when you already have coverage. For example, if you’re billed for something incorrectly, offered a free test or screening in exchange for your Medicare number, charged for filling out a claim, or prescribed excessive testing or services, there’s a good chance that you’re being scammed. 

How To Protect Yourself from Medicare Fraud

Medicare loses around $60 billion each year to fraud, abuse, and errors. Here’s how you can protect yourself and avoid falling victim. 

1. Treat your Medicare card like a credit card. Never share your number or card with anyone who contacts you out of the blue, and avoid giving details over the phone or via email. Typically, you should only give your Medicare card number to a doctor or authorized Medicare provider or agent. If anything happens to your card, you can request a replacement. 
2. Be cautious of free services or bogus plans. If someone offers free medical services or equipment in exchange for your Medicare number, it’s probably a scam. Medicare fraudsters may also call you to offer fake plans, products, or benefits that seem legitimate. In either situation, independently reach out to your providers before giving any information away. 
3. Review your Medicare statements. Check your Medicare billing statements, Medicare Summary Notice, and Explanation of Benefits carefully. It’s a good idea to keep complete records of any healthcare services and appointments, medical supplies and equipment, and prescription medication that you receive. 

If you spot any errors on your medical bill, like a double charge or a service you didn’t receive, don’t hesitate to question it. Even small billing mistakes can add up to significant amounts if left unchallenged. Ask your healthcare provider if you see a charge you don’t recognize. You can also report the charge to Medicare online or by calling 1-800-MEDICARE (1-800-633-4227).