What Crypto Scams Seniors Should Watch For

Cryptocurrency is hot right now, and with it comes a rise in scams. Seniors are particularly vulnerable to these scams, as they may be more trusting of strangers and less familiar with how cryptocurrency works.

That’s not to say there aren’t some pretty savvy elders out there, but in general, those over the age of 60 are prone to falling for scams more quickly than younger people. Here are some of the most common crypto scams that seniors (and everyone, really) should be on the lookout for.

High Rates of Elder Theft

Elder theft and scams are at an all-time high for a number of reasons.

• The aging population. The number of people over the age of 65 is growing rapidly. In the United States, the number of people over the age of 65 is expected to double by 2050. This means that there will be more potential victims of elder theft and scams.
• The increasing use of technology. Elderly people are increasingly using technology, such as the internet and social media. This makes them more vulnerable to online scams.
• The isolation of elderly people. Many elderly people are isolated from their families and friends. This makes them more likely to fall victim to scams, as they may be more trusting of strangers.
• The sophistication of scammers. Scammers are becoming increasingly sophisticated in their methods. They are using new technologies and techniques to target elderly people.

Why Scammers Target the Elderly

Unfortunately, the elderly can be a pretty easy target. Here are a few of the reasons why scammers may specifically target them:

• Seniors are more likely to have savings and investments. They’ve spent years building a nest egg, and they may be looking for ways to make that nest egg grow or continue to make money in their retirement.
• Seniors may be more trusting of strangers. Times used to be simpler. There were fewer bad people out there. Either that or the news didn’t report on the bad things as much as it does now.
• Seniors may be less tech-savvy and more vulnerable to online scams. It’s hard to know what to look for when you’re less familiar with the online world and what’s out there.
• Seniors may be more isolated and less likely to have someone to talk to about scams. They don’t know what they don’t know, and it may not cross their mind to do the research.
• Scammers know that seniors are less likely to report scams to the authorities. Think about it. It’s embarrassing to admit you may have fallen for something so obvious. You’d rather just let it go and learn from your mistakes.

Most Common Crypto Scams Targeting the Elderly

While anyone could fall for these scams, these are the scams that are most likely to target older people or that older people are most likely to fall for.

The grandparent scam

The crypto grandparent scam is a type of scam that only targets elderly people. In this scam, the scammer will pose as a grandchild or other close relative of the victim and ask for money to that they can use to purchase cryptocurrency. The scammer will often use emotional appeals, such as claiming that they are in financial trouble or that they need the money to pay for a medical emergency.

There are a few reasons why elderly people are more likely to fall for the crypto grandparent scam, but when it involves trusting their grandkids or other close relatives, they’re even more likely.

Fake cryptocurrency giveaways

Scammers will often send out emails or social media messages that offer free cryptocurrency. To claim the prize, the senior is asked to provide their personal information or to send money to the scammer. Once the scammer has this information, they can use it to steal the senior's identity or money.

These are easy to fall for because seniors aren’t typically as social media savvy and may not know much about crypto.

Tech support scams

Scammers will call seniors and claim that there is a problem with their computer or internet connection. They will then ask the senior to give them remote access to their computer. Once they have access, the scammer can steal the senior's cryptocurrency or other personal information.

Romance scams

Scammers will create fake profiles on dating websites and social media platforms. They will then target seniors and build relationships with them. Once they have gained the senior's trust, the scammer will ask them for money to purchase cryptocurrency or to help them with a financial emergency.

Additional Tips

If you are a senior, it is important to be aware of these scams and to take steps to protect yourself. Here are some tips:

• Never give out your personal information or cryptocurrency to someone you don't know.
• Be suspicious of any opportunity that promises high returns or guaranteed profits.
• Don't click on links in emails or social media messages from people you don't know.
• Install a good antivirus program and keep it up to date.
• Back up your computer regularly.
• If you think you have been scammed, contact your local law enforcement agency.

Final Thoughts

There are a number of things that can be done to protect elderly people from theft and scams and it’s important that, as a community, we help where we can.

• Educate elderly people about the risks of theft and scams, how to spot them, and how to protect themselves.
• Encourage elderly people to use technology safely.
• Connect elderly people with their families and friends to reduce isolation and make them less vulnerable.
• Report scams to the authorities.

It’s important to educate and protect our seniors, and it’s important for seniors to know what to look for so they can be safer on the internet, especially if they want to purchase crypto.

For additional information on Elder Financial Exploitation, please go to FIN-2022-A002