Scams and Frauds for Seniors

Written by Andrew Dauphinee
Published on February 26, 2025

Thank you to Sergeant Michael Rosati from the Medicaid Fraud Control Unit, Office of the Insurance Fraud Prosecutor, for providing an overview of scams and frauds specifically focused on our senior population as well as the important topic of elder abuse. Seniors are a growing population in the United States and becoming an increasing target for scammers and fraudster at an alarming rate.

In fact, according to the FBI, seniors lost $3.4 billion to scams in 2023 and unfortunately, it can be very difficult to recover from these situations. Education is the best tool to protect yourself and loved ones from these situations so let’s take a closer look at how to keep our seniors safe and what we can do if we think they have been the victim of abuse, scams, or frauds.

Elder Abuse

Before focusing on specific frauds and scams that target seniors, its important to have an understanding of elder abuse since many of the things that seniors fall victim to can be considered a form of elder abuse. In its most basic form, elder abuse is anything that causes the mistreatment or harm of an older person. Elder abuse can occur in almost any setting, but the most common are considered community and institutional settings. While elder abuse is chronically under-reported, it is estimated that 90% of elder abuse comes from family members.

Forms of Elder Abuse

Elder abuse can take many forms and include:

• Financial exploitation
• Physical abuse
• Emotional/psychological
• Sexual
• Neglect

In some instances physical abuse, emotional/psychological abuse, or neglect can be tools used by abusers to achieve an ultimate goal of financial exploitation, creating an environment where the individual being abused feels they have no choice to but comply with their abuser’s demands.

Signs of Elder of Abuse

When looking for signs related to elder abuse, please be vigilant for:

• Physical Signs
  • Broken bones, bruises, and welts
  • Untreated bed sores
  • Torn, stained, or blood underclothing
  • Sexually transmitted diseases without clear explanations
  • Dirtiness, poor nutrition, or dehydration
  • Poor living conditions
  • Lack of medical aids (glasses, walker, hearing aids, etc.)
  • Over/under medicated
• Emotional and Behavioral Signs
  • Unusual changes in behavior or sleep
  • Fear or anxiety
  • Isolation from friends and family
  • Withdrawal from normal activities
  • Sadness
• Financial Signs
  • Unusual changes in a bank account or money management services
  • Unusual or sudden changes in a will or other financial documents
  • Fraudulent signatures on financial documents
  • Unpaid bills

Report Elder Abuse

If you see or suspect elder abuse, there are a variety of institutions you can contact for help. If you believe that something criminal has happened, contact the local police department or the county prosecutor’s office. You can also file a report with a county Adult Protection Services office, contact the Elder Protection Task Force at 609-292-1272, or contact the Long-Term Care Ombudsman.

If you or someone you know has been the victim of a financial scam or fraud, contact the NJ Division of Consumer Affairs. If you suspect abuse at the hands of a medical professional or medical facility staff, contact the NJ Department of Health and the relevant licensing board for that person (physician, nurse/home health aide, health care facility, personal care assistant/certified nurse aide).

Scams and Frauds

So why are seniors such common targets for scammers and fraudsters? Well, there a variety of reasons:

• More likely to have savings or retirement accounts
• More likely to own a home or have equity in a home
• More likely to have excellent credit ratings to take our loans and access cash
• Assume seniors will be polite and trusting
• Assume seniors will no report crimes due to embarrassment or threats
• Believe seniors may be looking for companionship

While scams and frauds can share many elements, their ultimate purposes are distinct.

Types of Scams and Frauds

Scams are designed to separate someone from their money or gain valuable personal information to commit a fraud while fraud boils down to telling lies to steal money. Some of the most common types of scams and frauds include:

• Advanced Fee – a request is made for payment in order to receive a bigger payout, such as from a lottery, sweepstakes, or impounded money
• Romance Scam – developing a relationship to the extent that the individual feels compelled to send the scammer money, oftentimes without ever having met them or spoken to them
• Investment Fraud – investing in a property, business, or financial service that appears to be a “good deal”, oftentimes with guarantees of unrealistic gains or returns
• Telemarketing Fraud – an imposter claims to be from a legitimate institution (bank, government agency, law enforcement, technology company) and demands immediate payment to resolve an outstanding issue
• Phishing – an attempt by email, text, or phone call to steal your personal information by asking you to provide those details to confirm common occurrences, such as package deliveries, order returns, billing issues, or service contracts
• Computer Scams – individuals will hold your computer hostage by installing malware or locking your computer until you pay a certain amount

Common Identifiers

There are some very common identifiers that can help you spot a scam or fraud:

• Receiving unsolicited texts, emails or phone calls from unknown numbers or addresses
• Urgency for resolution of a specific issue, oftentimes in the form of a one-time payment
• Demanding the use of alternate payment methods, such as gift cards, cryptocurrency/Bitcoin, or Green Dot cards
• Grammar errors or unusual grammar (AI is changing this fast)
• Use of spoofing to mask the real phone number or email address

Reporting Scams and Frauds

If you or someone you know has been the victim of a scam or fraud, contact your local police department and notify all applicable financial institutions, including the 3 major credit bureaus. You can also file a complaint with the NJ Division of Consumer Affairs, the Consumer Finance Protection Bureau, of the Federal Trade Commission.

Medicaid and Medicare Fraud

Many seniors are enrolled in Medicare and Medicaid in order to pay for their medical needs, including long-term care facilities. As a result, these programs are prime targets for fraud. Medicaid and Medicare fraud occurs when false information is presented in order to obtain unauthorized benefits. This can include:

• Falsified forms to enroll in benefits or programs
• Billing for unnecessary services or procedures
• Billing for services or procedures that were never performed
• Physician “kickbacks” for referrals

Warning signs that someone might have been a victim of Medicaid and Medicare fraud include:

• Receiving medications that are not used or received an excessive amount
• Tests/procedures/durable medical equipment that does not seem to be appropriate for current medical conditions
• No co-pay being collected
• Charges on Explanation of Benefits that do not make sense

If you or someone you know is a victim of Medicaid fraud, please contact the Medicaid Fraud Control Unit.

More Information

If you have any questions about elder abuse or scams and frauds that target seniors, including who to contact, please contact Sergeant Michael Rosati at rosatim@njdcj.org or the NJ Medicaid Fraud Control Unit at mjmfcu@njdcj.org. You can view a recording of this webinar on our YouTube channel at https://youtu.be/qCZNVMJMbp8.