Top 10 ways senior citizens lose money each year

As people age, managing finances can become more challenging due to fixed incomes, health concerns, and increased exposure to fraud. Unfortunately, senior citizens are often targeted for financial exploitation, leading to significant losses each year. Understanding the most common ways money is lost can help older adults and their families protect hard-earned savings.

1. Phone and Online Scams: Scammers frequently pose as government agencies, banks, or tech support representatives. These fraudsters use fear and urgency to pressure seniors into sharing personal information or sending money. Common scams include fake Social Security threats, prize winnings, and romance scams.

2. Identity Theft: Stolen personal information can be used to open credit accounts, access bank funds, or commit tax fraud. Seniors may be less likely to monitor credit reports regularly, allowing fraud to go unnoticed for long periods.

3. Unnecessary or Fraudulent Medical Expenses: Medical billing errors, fake health products, and Medicare fraud can cost seniors thousands of dollars. Fraudsters may bill for services never received or sell ineffective medical devices and supplements.

4. Investment and Financial Fraud: High-pressure investment schemes often promise guaranteed or unusually high returns. Seniors are frequently targeted because they may have retirement savings and trust financial “experts” who appear professional but are unlicensed or dishonest.

5. Home Repair and Contractor Scams: Dishonest contractors may overcharge, demand upfront payments, or perform poor-quality work. Seniors are often targeted after storms or emergencies when quick repairs seem necessary.

6. Financial Abuse by Family or Caregivers: Sadly, some financial losses come from trusted individuals. Unauthorized withdrawals, misuse of credit cards, or pressure to change wills or accounts can quietly drain savings.

7. Subscription and Auto-Renewal Charges: Many seniors lose money through forgotten subscriptions or automatic renewals for services they no longer use. Small recurring charges can add up significantly over time.

8. Poor Financial Decisions or Misinformation: Confusing financial products, high-interest loans, or unclear insurance policies can result in unnecessary expenses. Limited access to trustworthy financial advice increases this risk.

9. Sweepstakes and Lottery Scams: Fraudsters may claim a senior has won a prize but must pay fees or taxes upfront. Legitimate lotteries never require payment to claim winnings, but these scams remain common.

10. Lack of Financial Monitoring: Not regularly reviewing bank statements, credit card bills, or insurance policies can allow errors and fraud to persist. Cognitive decline or lack of assistance may make oversight more difficult.

Awareness is the first step in prevention. Seniors can protect themselves by regularly reviewing accounts, avoiding unsolicited financial offers, consulting trusted advisors, and staying connected with family or community support. By understanding these common risks, older adults can take proactive steps to safeguard their finances and maintain peace of mind.