Direct answer: People in their 70s are the most frequently targeted group for financial fraud. Common scams include grandparent scams (caller claims to be a grandchild in trouble), fake IRS or Medicare calls, investment fraud, deed theft, and romance fraud. The best defense is a designated trusted contact and a slow, deliberate response to any unexpected financial request.
Protecting Yourself From Financial Scams in Your 70s
Grandparent Scams
A grandparent scam caller claims to be your grandchild (or a police officer, attorney, or doctor helping them) facing an emergency: arrested, hospitalized, in a car accident, or stranded abroad. They ask for immediate payment via wire transfer, gift cards, cryptocurrency, or cash, and request that you keep it secret from other family members.
The defense is simple: hang up and call your grandchild or their parents directly using a number you already have. Do not use any phone number provided by the caller. Real family emergencies can be verified through people you already know. Gift cards, wire transfers, and cryptocurrency are irreversible payment methods used specifically because they cannot be recovered.
Fake IRS and Medicare Calls
The IRS never initiates contact by phone, email, text, or social media. If you owe taxes, you will first receive a written notice by postal mail. Any call threatening immediate arrest, deportation, or license suspension unless you pay right now is a scam. The same is true for Medicare: Medicare does not call you unsolicited to ask for your Medicare number or offer free supplies in exchange for it.
If you receive a suspicious IRS call, hang up. You can verify your actual tax status by calling 1-800-829-1040 or visiting IRS.gov. For Medicare concerns, call 1-800-MEDICARE (1-800-633-4227).
Investment Fraud
Investment fraud targeting older adults often involves promises of guaranteed high returns with little or no risk, pressure to invest immediately before an opportunity disappears, requests to keep the investment secret from family or advisors, and sometimes claims of an exclusive group or insider advantage.
No legitimate investment guarantees high returns without risk. Before sending money to any investment opportunity, verify the firm and the individual through FINRA BrokerCheck (finra.org/brokercheck) and the SEC's Investment Adviser Public Disclosure database (adviserinfo.sec.gov). A legitimate advisor will have no objection to verification.
Deed Theft and Property Fraud
Deed theft occurs when a fraudster uses forged documents to transfer ownership of your home without your knowledge. Homeowners can monitor for unexpected changes by requesting a property records alert from their county recorder's office (many counties offer this free) and by reviewing their property tax bill annually to confirm the owner name is correct.
Title monitoring services are also available through some title insurance companies. While deed theft is less common than other scams, the consequences are severe, and prevention through monitoring is straightforward.
What to Do If You Have Been Scammed
If you believe you have been defrauded, act quickly. Contact your bank or custodian immediately to stop or reverse any transfers if possible. File a report with the Federal Trade Commission at ReportFraud.ftc.gov. Report to the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint. Contact your state attorney general's office. If the fraud involved a financial advisor or broker, file a complaint with FINRA or the SEC.
Do not be embarrassed about reporting. Financial fraud is a crime, not a personal failing. Quick reporting increases the chance of recovery and helps authorities track patterns that protect others.
Related guides: What to Automate in Your 70s, Involving Family in Your Finances
Frequently Asked Questions
How do grandparent scams work?
In a grandparent scam, a caller claims to be your grandchild (or a person helping them) in an emergency situation: arrested, in a car accident, hospitalized, or stranded abroad. The caller asks you to wire money, send gift cards, or send cash immediately and to keep it secret. The best response is to hang up and call your grandchild directly on a number you already know, not a number provided by the caller. Real emergencies can be verified through known contacts.
Will the IRS call me?
No. The IRS does not initiate contact with taxpayers by phone, email, or text message. If you owe taxes, the IRS will first send a notice by postal mail. Any unsolicited call demanding immediate payment and threatening arrest or deportation is a scam. If you receive such a call, hang up. You can verify your actual tax status by calling the IRS directly at 1-800-829-1040 or visiting IRS.gov.
What is a trusted contact at a brokerage?
A trusted contact is a person you designate with your broker or custodian who can be contacted if there are concerns about your wellbeing, unusual account activity, or suspected financial exploitation. A trusted contact cannot access your account or authorize transactions. They are an emergency contact only. FINRA rules require brokers to request trusted contact information; if you have not provided one, contact your custodian.