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June is Financial Awareness Month—a time to reflect on our financial habits and take proactive steps to safeguard our resources. For older adults, financial security can be especially fragile. Sadly, financial abuse and scams that target older adults are on the rise, often leaving victims not only out of money but feeling betrayed, confused, or ashamed.

As we recognize Financial Awareness Month, it’s important to raise awareness, stay informed, and share practical tips to protect ourselves and our loved ones from financial harm.

What Is Financial Abuse?

Financial abuse of older adults involves the illegal or improper use of an individual’s funds, property, or assets. It can be committed by strangers—or, even more alarmingly, by trusted individuals such as family members, caregivers, or friends.

Common signs of financial abuse include:

• Unexplained withdrawals or transfers
• Missing checks or bank statements
• Sudden changes in a will or power of attorney
• New “friends” or caretakers exerting influence over financial decisions
• Older adults feeling anxious, confused, or secretive about their money

Common Scams Targeting Older Adults

Scammers often target older adults because they may live alone, be unfamiliar with new technologies, or simply be more trusting. Here are some of the most common scams to watch out for:

1. Tech Support Scams
   The scammer poses as tech support, claiming your computer has a virus. They ask for remote access or payment to “fix” the problem.
2. Medicare and Health Insurance Scams
   Fraudsters pose as Medicare representatives to get personal information, then use it to file false claims or steal identities.
3. Romance Scams
   Scammers form emotional bonds with victims online, then ask for money under false pretenses.
4. Grandparent Scams
   The caller pretends to be a grandchild in trouble—often claiming they need bail money or have been in an accident—and begs for money to be sent quickly and secretly.
5. Sweepstakes and Lottery Scams
   “You’ve won a prize!” the message says, but in order to claim it, you need to pay taxes or fees upfront.
6. Government Impersonation Scams
   Scammers pretend to be from the IRS, Social Security, or other government agencies, threatening legal action unless immediate payment is made.

The Rise of AI-Powered Scams

In recent years, scammers have begun using artificial intelligence (AI) to make their schemes even more convincing. For example:

• Voice cloning technology can mimic the voice of a loved one, making grandparent scams even harder to detect.
• AI-generated deepfake videos or emails can look and sound like they’re coming from real people or institutions.
• Automated bots can quickly generate highly personalized phishing emails based on publicly available information.

Because these scams are increasingly sophisticated, it’s more important than ever to verify, not trust, when it comes to unexpected requests involving money or personal information.

Tips to Help Prevent Financial Abuse

Here are some simple yet effective ways to prevent financial exploitation:

1. Talk About It
   Start conversations with older family members about money safety. Reducing the stigma around financial vulnerability is a powerful first step.
2. Monitor Finances
   Help older adults review bank accounts and credit card statements regularly for any unusual activity.
3. Set Up Protections
   • Use direct deposit for checks.
   • Limit access to financial accounts or consider naming a trusted financial power of attorney.
   • Sign up for fraud alerts from your bank or credit card company.
4. Stay Skeptical
   • Don’t click on links in unexpected emails or texts.
   • Don’t give out personal information over the phone.
   • Never pay with gift cards or wire transfers in response to demands—these are red flags for scams.
5. Check in Regularly
   Social isolation can increase the risk of abuse. A regular phone call or visit can not only improve emotional well-being but also serve as a way to spot signs of trouble early.
6. Know Where to Report
   If you suspect financial abuse, report it to your local Adult Protective Services agency or contact the National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).

Awareness Is the First Line of Defense

Financial Awareness Month is a perfect time to check in on your own financial safety—and that of your loved ones. By staying informed, talking openly, and watching for signs of abuse, we can help ensure that older adults stay protected, empowered, and financially secure.