Mar 30, 2025
Matthew just discovered his 79-year-old mother, Barbara, has found herself deep in an online gift card scam. The retired teacher had received a friend request from an unfamiliar, but friendly fellow named Robert a few months back and quickly struck up a fast friendship.
But one day, Barbara’s new friend promised to teach her how to invest her savings to see 100 times returns. In exchange, she had to send him a few thousand dollars in the form of gift cards to all sorts of stores, including Apple, Target and eBay.
Advertisement
By the time her son got a whiff of it, Barbara had already sent “Robert” close to $400,000 — draining her 401(k) and wracking up some serious credit card debt. And she has yet to cut off contact from her friend, continuing to send him gift cards fairly regularly.
Sadly, their story is far from unusual. In fact, more and more older Americans are falling victim to scams. Here’s what you need to know to protect your family from the “Roberts” of the world.
What you can do to protect yourself and elderly relatives
Cybercrimes are on the rise, but there are many steps you can take to protect yourself and your older loved ones. Sitting down with your loved ones and going over strategies to protect themselves online can go a long way.
For starters, remind them before sending money online to always double-check the recipient’s information. Contact them to confirm that important details, like their address, phone number and bank account information are correct.
Strengthening your online privacy and safety settings is also critical. For example, limiting who can send Facebook messages to your or your family member’s inbox could help keep scammers out.
Emphasize that it's crucial to report suspicious activity, like requests from strangers to share your personal or financial information. If someone shares a suspicious link with you, don’t click it. Instead, report the message and block their profile.
If you think you or your loved one has become a victim of a scam, file a report with the Federal Trade Commission (FTC) at FTC.gov. Note that victims who are at least 60 years old and need help filing a report can contact the National Elder Fraud Hotline at 1-833-372-8311.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Most common scams targeting seniors
While cybercrime is on the rise, the ways online thieves target older adults and trick them into giving them money are becoming increasingly varied and sophisticated.
Advertisement
The gift card scam is one of the most common ways scammers steal money from older Americans. Often, a thief will send you a text or social media message impersonating a tech company or government organization, saying that you owe them money and that something bad will happen if you don't immediately pay them with a gift card.
However, when you send the scammer the barcode number and pin on the back of the gift card, they take the money and run. To avoid this scam, remember that no legitimate organization will ask you or your elderly relative to pay them in gift cards.
Another method thieves use to steal money from older people is the grandparent scam. It happens when someone calls you impersonating your grandchild. Older adults may get an unexpected call from someone impersonating their grandchild, saying they’re in danger or trouble and need you to send money to help them. One sign that this is a scam includes a person asking for payment in gift cards or crypto.
Older Americans should also watch out for Medicare scams, which often involve someone pretending to be a Medicare representative to steal your personal information. To guard against this scam, Medicare.gov recommends only giving your Medicare number and other personal info to trusted people, like your doctor or insurer.
Older adults lost around $1.9 billion due to fraud in 2023, according to the most recent data from the FTC. It’s important to arm your loved ones with the information they need to prevent them from becoming a statistic.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Jerry is a Certified Financial Education Instructor (CFEI) with more than four years of experience writing about personal finance for various publications, including Investopedia, Bankrate and U.S. News. His mission is to help others master their finances so they can live better lives.
