Protecting Yourself From Scams, Fraud & Financial Exploitation

Category: Aging Well

Protecting Yourself From Scams, Fraud & Financial Exploitation

Scams and financial exploitation can happen to anyone.

Criminals use fear, urgency, confusion, affection, and trust to pressure people into sending money or revealing personal information. They may pretend to represent a government agency, bank, utility company, technology provider, charity, investment firm, or family member.

Financial exploitation can also involve someone you know. A relative, friend, caregiver, neighbor, professional, or other trusted person may misuse your money, property, accounts, or authority you gave them.

Being targeted does not mean you were careless, unintelligent, or unable to manage your own affairs. Scams are deliberately designed to feel convincing.

The goal is not to become suspicious of everyone. It is to develop habits that give you time to think, verify requests, and protect yourself before money or information changes hands.

Understand the Difference

Although the terms are sometimes used together, scams, fraud, and financial exploitation can involve different situations.

Scams

A scam usually involves someone using a false story to persuade you to send money, share information, provide account access, or take another action that benefits the scammer.

The person may contact you by:

Telephone.
Text message.
Email.
Social media.
Postal mail.
Dating website.
Pop-up message.
Online advertisement.
An unexpected visit to your home.

Fraud

Fraud involves intentional deception for financial or personal gain.

Examples include:

Unauthorized purchases.
Identity theft.
Fake investments.
Insurance fraud.
Forged checks.
Accounts opened in your name.
False charges for products or services.
Someone using your information without permission.

Financial Exploitation

Financial exploitation is the illegal or improper use of another person’s money, property, benefits, belongings, or financial information.

The person responsible may be a stranger, but it may also be:

A relative.
A friend.
A caregiver.
A neighbor.
A romantic partner.
A financial professional.
Someone with access to your home.
Someone authorized to help manage your money.

A person may begin by offering legitimate help and gradually take more control than you intended.

Helpful Resources: Browse Identity Protection for products, equipment, services, or supplies related to this section.

Recognize Common Scams

Scams change frequently, but the methods used to pressure people are often similar.

Government Impersonation Scams

Someone claims to represent Social Security, Medicare, the IRS, law enforcement, a court, or another government agency.

They may say:

Your benefits will be suspended.
Your Social Security number has been connected to a crime.
You owe taxes or fines.
You missed jury duty.
There is a warrant for your arrest.
You must move your money to protect it.

Government agencies do not demand immediate payment through gift cards, cryptocurrency, wire transfers, cash couriers, or payment apps. They also do not tell you to move your money into a “safe” account controlled by someone else.

Family Emergency and Grandchild Scams

A caller claims to be a child, grandchild, relative, lawyer, police officer, or medical professional.

You may be told that someone you love:

Was arrested.
Was injured.
Caused an accident.
Is stranded while traveling.
Needs money immediately.
Does not want other relatives to know.

Artificial intelligence can now be used to imitate a person’s voice. A familiar-sounding voice is not enough to prove who is calling.

Hang up and contact the family member using a number you already know. You can also call another trusted relative to verify the story.

Technology-Support Scams

A pop-up, call, or email claims your computer or phone has a virus or security problem.

The person may ask you to:

Install remote-access software.
Share your screen.
Read a security code aloud.
Provide a password.
Sign in to your bank account.
Pay for unnecessary repairs or protection.

Do not call a number displayed in an unexpected pop-up. Close the message and contact the device manufacturer or a trusted technology professional independently.

Bank and Account Scams

Someone claims there is suspicious activity on your bank, credit card, payment-app, or online-shopping account.

They may know some personal information or make the caller ID appear legitimate.

Never provide a password, PIN, or one-time security code to an unexpected caller. Hang up and call the number printed on your card or shown in the institution’s official app or website.

Romance and Friendship Scams

Someone builds an emotional relationship online and eventually asks for money.

Common stories involve:

A medical emergency.
Travel problems.
A frozen bank account.
A business opportunity.
Military service overseas.
Money needed to visit you.
An investment you can make together.

Be cautious when someone you have not met in person asks for money, investments, account access, gift cards, or financial secrecy.

Investment Scams

Someone promises unusually high returns with little or no risk.

Warning signs include:

Pressure to act immediately.
Guaranteed profits.
A “secret” opportunity.
Requests for cryptocurrency.
Difficulty withdrawing your money.
Instructions not to discuss the investment with anyone.
A recommendation based primarily on a celebrity or social-media endorsement.

Verify the person and investment independently before sending money.

Lottery, Prize and Sweepstakes Scams

You are told you won money, a vehicle, a vacation, or another prize—but must first pay a fee, tax, shipping charge, or processing cost.

A legitimate prize does not require you to pay money to receive it.

Home-Repair and Contractor Scams

Someone appears at your home offering urgent repairs, inspections, or unusually inexpensive work.

Be cautious if the person:

Claims to have noticed a dangerous problem.
Pressures you to decide immediately.
Requests a large cash payment upfront.
Refuses to provide a written agreement.
Has no verifiable business information.
Wants to drive you to the bank.
Offers to perform work you did not request.

Get more than one estimate and verify licenses, insurance, references, and complaint history when applicable.

Learn the Warning Signs

Pause whenever someone:

Creates a sudden emergency.
Threatens arrest, lost benefits, account closure, or financial harm.
Promises guaranteed money or unusually high returns.
Demands secrecy.
Discourages you from speaking with family, your bank, or an attorney.
Insists that you act before ending the call.
Tells you to withdraw a large amount of cash.
Sends someone to collect cash, gold, or valuables.
Requests payment through gift cards, cryptocurrency, wire transfers, or a payment app.
Asks you to move money to “protect” it.
Requests your password, PIN, or security code.
Asks for remote access to your computer or phone.
Wants you to lie to a bank employee about why you are withdrawing money.
Claims you must pay money to receive a prize.
Becomes angry when you ask questions or request time to think.

A legitimate organization will allow you to stop, verify the request, and contact it through an official channel.

Use the Pause-and-Verify Rule

Your best protection is creating time between the request and your response.

When something unexpected involves money or personal information:

Stop the conversation.

Do not send money, click a link, download an application, or provide information.

End the contact.

Hang up, close the message, or tell the person at your door that you will respond later.

Verify the story independently.

Contact the organization or person using a telephone number, website, application, or address you already trust.

Speak with someone else.

A second person may notice pressure tactics or inconsistencies that are difficult to recognize while you are worried.

Decide only after the urgency is gone.

You do not owe an unexpected caller, visitor, or message an immediate decision.

You can say:

“I do not make financial decisions during unexpected calls. I will contact the organization directly.”

Protect Your Personal and Financial Information

Do not provide the following in response to an unexpected request:

Social Security number.
Medicare number.
Bank-account information.
Credit- or debit-card number.
PIN.
Password.
One-time security code.
Copy of your identification.
Answers to security questions.
Photograph of a check.
Remote access to your device.

A bank or company may send a legitimate security code when you initiate an activity. However, someone who unexpectedly contacts you and asks you to read that code aloud may be attempting to access your account.

Strengthen Your Everyday Protection

A few routine safeguards can make unauthorized activity easier to prevent and detect.

Consider:

Using a different strong password for each important account.
Turning on two-step verification.
Locking your phone and computer.
Reviewing bank and credit-card statements regularly.
Setting alerts for withdrawals, purchases, transfers, and password changes.
Shredding documents containing sensitive information.
Collecting mail promptly.
Using direct deposit for benefit payments.
Keeping checks, cards, financial records, and identification secure.
Reviewing your credit reports.
Avoiding financial activity on public Wi-Fi.
Removing unused remote-access programs from your devices.
Allowing software and security updates to install.
Asking your financial institution about adding a trusted contact.

A trusted contact does not automatically receive access to your money. Depending on the institution, the contact may be someone the institution can reach if it notices suspicious activity or cannot reach you.

Be Careful When Someone Helps With Your Money

Accepting help does not require surrendering all financial control.

If you need assistance:

Decide exactly what help is needed.
Give only the minimum access necessary.
Keep your own copies of important documents.
Continue receiving and reviewing statements when possible.
Avoid signing blank checks or incomplete documents.
Do not add someone to an account unless you understand the consequences.
Ask an independent attorney about powers of attorney and other legal arrangements.
Consider having more than one person involved in major decisions.
Review arrangements periodically.
Speak up if the person helping you refuses to explain transactions.

Someone who helps manage your money has a responsibility to use it for your benefit and according to the authority you granted.

Recognize Possible Financial Exploitation

Warning signs may include:

Money or valuables disappearing.
Withdrawals or transfers you do not recognize.
Bills going unpaid even though money is available.
A new person becoming heavily involved in your finances.
Someone isolating you from relatives or trusted friends.
Pressure to change a will, deed, beneficiary, or power of attorney.
A new name appearing on an account.
Checks written to unfamiliar people.
Unexplained changes in spending.
Someone using your card without permission.
Someone charging you for care or work that was not provided.
A caregiver or relative showing unusual interest in your property or inheritance.
Someone preventing you from speaking privately with your bank, doctor, attorney, or family.
Fear, discomfort, or confusion when a particular person discusses money.

The Department of Justice provides additional information about the warning signs of elder financial exploitation.

One warning sign does not always prove exploitation. It does mean the situation deserves closer review.

What to Do if Something Feels Wrong

Trust the feeling that something is not right.

You can:

Stop additional payments or transfers.
Contact your bank or credit-card company.
Ask to speak with the fraud department.
Review recent transactions.
Change compromised passwords.
Remove unauthorized account users.
Preserve emails, texts, receipts, envelopes, telephone numbers, and account records.
Tell someone you trust.
Contact an attorney if legal documents or property are involved.
Report suspected exploitation to Adult Protective Services.

If the suspected person has access to your home, devices, accounts, transportation, or medications, consider getting help before confronting them.

If you are in immediate danger, call 911.

Act Quickly After Sending Money or Information

Do not wait because you feel embarrassed or hope the situation will resolve itself. Quick action may improve the chance of stopping a payment or limiting further harm.

Contact the Financial Institution

Use an official number to contact the bank, credit-card company, payment service, wire-transfer company, cryptocurrency exchange, or gift-card company.

Explain:

What happened.
When it happened.
How much was sent.
Which account or payment method was used.
Whether the transaction is still pending.
What personal information was shared.

Ask whether the organization can stop, reverse, recall, freeze, or dispute the transaction.

If gift cards were involved, keep the cards and receipts. Contact the issuing company and ask whether the remaining funds can be frozen or returned. The FTC maintains current instructions for reporting gift-card scams.

Secure Your Accounts

Depending on what was shared:

Change affected passwords.
Change any reused passwords.
Turn on two-step verification.
Contact your bank.
Replace compromised cards.
Review account-recovery information.
Remove unfamiliar devices from your accounts.
Contact your telephone provider if your number may have been transferred.
Scan your device for unwanted remote-access software.

Protect Your Credit

If someone received your Social Security number or other identifying information, consider placing a credit freeze with Equifax, Experian, and TransUnion.

A credit freeze is free and makes it harder for someone to open a new account in your name. You must contact all three credit bureaus to freeze all three credit reports.

The FTC explains how to place credit freezes and fraud alerts.

Report Identity Theft

Visit IdentityTheft.gov to report identity theft and receive a recovery plan based on what happened.

Report the Scam or Exploitation

Reporting may help investigators identify patterns, protect other people, and connect you with assistance.

Depending on the situation, contact:

ReportFraud.ftc.gov for scams and deceptive business practices.
FBI Internet Crime Complaint Center for online or internet-enabled fraud.
Your local police department when money, property, identity, threats, or forgery are involved.
Adult Protective Services for suspected financial exploitation of an older adult or an adult with a disability.
The National Elder Fraud Hotline at 1-833-FRAUD-11 or 833-372-8311 for assistance reporting fraud involving someone age 60 or older.
The Eldercare Locator at 1-800-677-1116 for help locating aging and protective services in your community.

You may need to report the situation to more than one organization.

Do Not Let Shame Protect the Person Responsible

People often hesitate to report because they:

Feel embarrassed.
Blame themselves.
Fear losing their independence.
Worry that relatives will become angry.
Depend on the person responsible for care or transportation.
Still care about the person who took advantage of them.
Are afraid they will not be believed.
Believe the money cannot be recovered.

These feelings are understandable.

The responsibility belongs to the person who used deception, pressure, threats, or unauthorized access—not to the person who trusted them.

Reporting a problem does not automatically mean losing control of your finances or living arrangements. It is a way to learn what happened, stop further harm, and understand your options.

Create a Personal Safety Plan

Decide in advance what you will do when an unexpected request involves money.

Your plan might include:

Never sending money during an unexpected call.
Never sharing a security code.
Calling family members directly to verify emergencies.
Discussing large or unusual transactions with a trusted person.
Using only saved or independently verified contact information.
Asking your bank to add transaction alerts.
Choosing a family password for genuine emergencies.
Keeping fraud-reporting numbers in an easy-to-find place.
Reviewing financial accounts on a regular schedule.

The purpose of a safety plan is not to give someone else control. It is to make your own decisions easier to protect.

A Simple Rule to Remember

Stop. End the contact. Verify independently. Ask someone you trust.

You are allowed to hang up.

You are allowed to ignore a message.

You are allowed to ask questions.

You are allowed to take time.

You are allowed to say no.

Protecting yourself does not mean living in fear. It means creating enough space to make decisions without pressure.