Frauds and Scams

Anyone can fall victim to fraud and identity theft, but seniors are often inundated with investment offers, promises of instant wealth and requests for charitable contributions. Seniors are less likely to report fraud for many reasons: they don’t know how to report the scam, are ashamed of being scammed, or don’t know that they have been scammed. Also, seniors may not report the crime because they’re concerned that relatives may think they no longer have the capacity to manage their own finances. Unfortunately, lack of reporting contributes to keeping seniors at risk for fraud and identity theft. The alerts below will provide you with additional information on how to protect yourself from scams:

Initial Fraud Alert

An initial fraud alert can be placed on your credit report if you suspect you are or may become a victim of identity theft. This alert advises lenders to take extra precautions before extending credit in your name. The alert will remain on your report for 90 days, but can be removed sooner at your request. There is no fee to place an initial fraud alert on your credit report. Placing an initial fraud alert also allows you to order one free copy of your credit report from each of the three credit reporting bureaus. For more information, visit

Extended Fraud Alert

An extended fraud alert placed on your credit report means that you have been a victim of identity theft and filed an Identity Theft Report with one of the three credit bureaus. Lenders must verify your identity prior to issuing new credit in your name. Also, as an added precaution, the extended fraud alert may reduce the number of pre-approved credit offers you receive for five years. This alert will last for seven years, but can be removed sooner. By placing an extended fraud alert on your file, you are able to order two free credit reports within 12 months from each of the three credit reporting bureaus. For more information, visit

Security Freeze

A security freeze prevents a third party from receiving a copy of your credit report without your consent. Florida’s seniors age 65 and older and those who have been a victim of identity theft can have a free security freeze placed on their credit report; there is a $10 fee for other individuals. You must submit a written request for the security freeze to each of the three credit bureaus. A security freeze can be lifted temporarily or removed at any time; there is no cost to seniors or identity theft victims to lift or remove the freeze. To request a temporary lift or remove a security freeze, contact each of the three credit bureaus in writing. For more information, visit

Credit Bureaus

Below is the contact information for each of the three credit bureaus to place a fraud alert on your credit report.

P.O. Box 740241, Atlanta, GA 30374

P.O. Box 4500, Allen, TX 75013

P.O. Box 2000, Chester, PA 19022

Consumer Scams

Scammers are always finding new ways to take advantage of consumers by stealing their financial information but seniors are especially at risk for financial exploitation. It is estimated that seniors lose $2.9 billion each year to financial frauds and scams. Studies suggest that financial fraud against seniors goes widely unreported, often out of embarrassment or fear that they will lose independence if their loved ones find out they’ve been deceived. No one wants to feel incapable of handling their personal finances. Scammers dupe seniors into believing scams such as: their grandchild has been arrested and money must be wired immediately so that they can be released from jail or following a disaster or devastating event, scammers will prey on the trusting nature of seniors to seek a false contribution.

The best way to keep yourself safe from scams and fraud is information. Be aware of the ways scammers are targeting consumers so that you can spot a scam before becoming a victim. Below are some of the top consumer scams that impact seniors to help you stay alert.

Tax (IRS) Scam

As the most popular scam of 2015, many people have received phone calls from individuals claiming to be from the IRS demanding payment for back taxes.

Pitch: Someone calls claiming to be from the IRS. Your caller ID identifies that the call is from the IRS. The scammer may use a false name and IRS identification badge number. To add creditability, they may ask you to verify some personal information such as: your full name, date of birth, home address, and the last four digits of your Social Security Number, all of which can be found on the internet. You are told you have an outstanding debt to the IRS and if a payment is not received immediately you could be arrested or a lien placed on your property. Typically, the scammer will instruct you to purchase a Green Dot prepaid debit card or wire the payment via Western Union or MoneyGram to settle the debt. The IRS does not use the phone, email, text message or any social media to discuss your personal tax issues involving bills or refunds.

Result: The scammers are only trying to get a quick payout. Unfortunately, it is almost impossible to recover any money you have wired or sent via a prepaid debit card.

How to avoid this scam: Do not automatically trust that a call is coming from the IRS based on the caller ID. Technology makes it easy for scammers to disguise the phone number with a practice called “spoofing.” Remember that the IRS will never call you without first sending you a hard-copy bill and it will never demand payment without offering you the chance to appeal and correct any error on your tax documents. Many seniors are not required to file tax returns because they earned little or no income. Consult with a tax professional to determine if you are required to file.

For more information, visit the IRS’ Tax Scams and Consumer Alerts page.

Tech Support Scam

Many seniors are very good with computers and enjoy having access to the internet to stay in touch with friends and family. Unfortunately, many scammers attempt to prey on unsuspecting seniors who are not as familiar with how computers operate and try to trick them into revealing personal financial information over the phone or through email.

Pitch: You receive a phone call or an email from individuals posing as computer support technicians, typically Microsoft or Dell, asking to remotely access your computer or download software to fix a problem. They will try to sell you software to fix your computer or install malicious software to steal your personal information. Once the scammer has access to your computer, they are able to change the settings on your computer that could leave it vulnerable to viruses.

Result: The scammer may have installed spyware, which can cause your computer to slow down or sometimes crash. You have exposed your personal information and paid for computer software that, most likely, was not needed.

How to avoid this scam: You should never give control of your computer to a third party who calls or emails you. Do not rely on caller ID to verify a call. If you would like tech support, go to the computer company’s website and look for the support webpage or phone number. Never give out personal or financial information by email or over the phone unless you initiated the contact and you are certain the person you are speaking with is affiliated with the company.

Chip Card Scam

The new chip in credit and debit cards is designed to reduce fraud, but scammers see it as an opportunity to commit fraud.

Financial institutions and credit card companies are mailing out new credit and debit cards that have an embedded microchip, which provides another level of security, but not everyone has received the new card.

This delay allows scammers to try to capitalize on consumers who haven’t received a new chip credit card.

Pitch: You receive an email or phone call from a financial institution or credit card company stating that your personal account information needs to be updated so that your new credit card with a microchip can be issued. The scammer states that this can only be done by confirming some personal information or clicking on a link.

Result: The scammer has access to your personal and financial information and can open fraudulent accounts in your name or steal your identity.

How to avoid this scam: You can protect yourself from the chip card scam by not clicking on a link in an email, or providing personal or financial information by phone to someone claiming to be from your financial institution or credit card company. If you’re concerned that the email or call may not be legitimate, contact your financial institution or credit card company at the phone number listed on the back of your credit card or statement to verify the call. Remember, your credit card company or financial institution does not need you to verify information prior to sending a new card.

Jury Duty Scam

Jury duty is an important civic responsibility and should be taken seriously. Unfortunately, scammers will try to use it to their advantage to commit this scam.

Pitch: You receive a phone call stating that a warrant has been issued for your arrest because you missed jury duty. The scammer claims to be a law enforcement officer or court appointed official and says you owe a fine that must be paid immediately to avoid arrest. The call appears authentic thanks to caller ID spoofing. This technology makes it easy for scammers to disguise a phone number. The scammer may ask that you provide your birth date and Social Security Number to verify your identity.

To avoid arrest, the scammer states that you can pay the fine by wire transfer via Western Union or MoneyGram, a Green Dot prepaid debit card, or by providing your bank account information.

Result: Do not respond to requests for personal or financial information, or for immediate payment. Giving this type of information can open the door to identify theft and you risk paying an unnecessary fine.

How to avoid this scam: When in doubt, hang up. If you feel you have missed a jury duty summons, call your area County Clerk’s Office to verify. The court will never request your personal information or immediate payment over the phone.

Grandparent Scam

This scam tugs at the heartstrings of seniors who have grandchildren.

Pitch: You receive a call from someone claiming to be your grandchild and states they have been arrested in another country and need money wired immediately.  The scammer asks that you don’t tell their mom or dad because this will upset them.

Result: You wire the money, only to find out that your grandchild is safe.

How to avoid this scam: Tell your family not to post travel plans online. Scammers can use online information to contact family members. Don’t trust caller ID. Scammers can disguise the number that appears on the caller ID with a practice called “spoofing.”  Technology is available to scammers that make it look like they’re calling from a different place or phone number.  If you get a call from your “grandchild” asking for bail money, ask for the name of the bond company and call them directly to verify it is true.

When in doubt, ask scammers questions that only your real family member would know the answer to or create a code word that only family members know to use in the case of an emergency.

Lottery Scam

Scammers try to convince seniors of new-found wealth through the lottery scam.

Pitch: The scammer will approach you in public claiming to have won the lottery but doesn’t have a bank account to deposit the funds. They will gladly share their new found wealth with you if you will provide payment upfront in ’good faith.’ Be on guard. Never deposit a check into your bank account or give money to someone claiming to have won the lottery unless you ensure the funds are available.

Also, scammers may contact you by phone or email claiming that you have won a prize or the lottery but you have to pay a fee before you can collect your winnings. They will instruct you to purchase a Green Dot Card or wire the money via Western Union or MoneyGram to pay the fees. Once you provide the ID number on the back of the Green Dot card or the verification number for Western Union or MoneyGram, the money is oftentimes gone and cannot be recovered.

Result: The check provided by the scammer is fraudulent. Typically, it takes weeks for a financial institution to discover a fraudulent check and you are responsible for paying back the full amount of the check and associated fees. If you wire money to the scammer to claim your prize, you may never hear from them again, or they keep calling you and saying that the fees have increased and you need to wire more money.

How to avoid this scam: If you won a legitimate lottery, all fees and taxes will be deducted prior to receiving the prize. Once you wire money to a scammer in a lottery and sweepstakes scam they won’t go away. The best thing to do is not to respond to phone calls or emails claiming you have won a lottery. If you hear you have won a “free gift,” vacation or prize, say “No thank you,” and hang up the phone. Be alert for individuals who approach you in public wanting to share their new fortune with you. If it sounds too good to be true…it is.

Home Improvement Scam

Look out for home improvement contractors who leave your home worse than they found it. They usually knock on your door with a story or a deal – the roofer who can spot some missing shingles on your roof, the paver with some leftover asphalt who can give you a great deal on driveway resealing. Itinerant contractors move around, keeping a step ahead of the law…and angry consumers.

Pitch: There’s a knock on your front door and you answer it. A contractor says he has just finished a job in your neighborhood and has load of asphalt material left over. Rather than take a loss on the supplies, he offers to repave your driveway at a reduce cost. Or, a handyman shows up after a storm with a list of suggested repairs for your property.

The scammer may also offer to do work in exchange for an assignment of benefits on your insurance policy, which means once the claim is completed through your insurance company the check will be provided directly to the contractor rather than you. The claim check may exceed the actual cost of the repairs necessary for the work on your home and the work may be completed with inferior materials. Never enter into this type of agreement unless you are absolutely sure the contractor is legitimate, licensed and has the proper insurance.

Result: The work may be poor quality and you may have to redo the entire job at your own expense. The scammer may file a false or inflated claim with your insurance company, which could cause an increase in insurance premiums. The scammer may take your money and not complete the job.

How to avoid this scam: Verify Before You Buy! Verify with the DFS’ Division of Workers’ Compensation if they have workers’ compensation coverage. If they don’t, you could be liable for any injuries that happen on your property. Also, check out the company with the Better Business Bureau. Collect copies of their license and contractor number to have for your records.

Windshield Repair Scam

This scam is another kind of repair scam. The deductible for a windshield repair is waived in Florida and most states. Scammers use this information to con unsuspecting consumers into committing insurance fraud.

Pitch: The scammer approaches you in the parking lot of a grocery store or gas station, for instance, claiming that you have small chips or nicks in your windshield. They offer to replace the windshield to prevent from becoming cracked causing further damage. The scammer will misrepresent to your insurance company that the windshield is seriously damaged and needs repairing.

Result: The scammer is most likely not a licensed repairman and is not authorized to complete the repairs on your windshield. Many of these individuals may not be trained or are poorly trained, work out of vehicles with no physical business address and disappear quickly after completing substandard repairs. They may also charge your insurance company for inflated or baseless expenses and subpar materials.

How to avoid this scam: Contact your insurance company before allowing the repairs to be made. The company will help you confirm if the windshield needs to be repaired and find a reputable glass vendor.

Romance Scam

In today’s world of online dating it’s much easier to search for a match, but it also makes it easier for scammers to search for their next targets.

Pitch: The scammer pretends to develop romantic intentions through online dating websites and social media to gain your affection and trust. Over time, the scammer will begin asking for money, perhaps for an airline ticket to travel to the United States to visit you, medical bills or expensive internet/phone bills to continue the relationship. The scammer will ask that you wire money via Western Union or MoneyGram or a prepaid debit card such as a Green Dot card.

Result: You send the individual money for the specific expenses and receive nothing in return, or the scammer continues to request money.

How to avoid this scam: Be vigilant while on the internet. Be cautious and leery of those you meet while on the internet and those you have never met in person. It is also advised that you do not send money to an individual that you do not know.

Charitable Donations Scam

Charitable donation scams are most popular after a disaster or devastating event has occurred.

Pitch: The scammer claims to be affiliated with charitable organizations such as: the American Red Cross, Police Benevolent Association and the Firefighters Association following a disaster. The scammer informs you that donations are being collected to assist individuals who were affected by the recent disaster in the area. The scammer claims that a goal has been set and they really need your help to reach that goal; the contribution must be made today. Contributions can be made via check, credit card or prepaid debit card.

Result: Never give out your personal or financial information over the phone unless you initiated the call. Do not be pressured into contributing. A reputable charity will be happy to take your contribution anytime.

How to avoid this scam: Only donate to local and familiar charities and research those you are not familiar with. Verify if a charity is registered and their financial information by visiting and reviewing the Gift Givers’ Guide.

Legal Notices 2013 © Florida Department of Financial Services