Older people are becoming increasingly vulnerable to scams, and the latest target appears to be inheritance tax.
From April 2027, pensions are to be used in inheritance calculations, but criminals are attempting to “exploit people’s concerns” by inventing fake scams claiming a person’s retirement savings can be invested abroad instead, said The Guardian.
The impact of scams is “often emotional as well as financial”, said Age UK. In terms of the financial cost, research by VirginMedia 02 found that over-65s falling victim to such fraud lose £831 on average.
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Scammers are often “emotionally manipulating” their victims, said StopThinkFraud, before they steal money or personal data. But you can protect yourself or encourage your family members to be careful by “staying vigilant and always taking a moment to stop, think and check” the source of the information.
‘Grandparent’ scams
One of the “most common scams”, said The Mirror, is where criminals pose as a grandchild or close relative. In instances like these, the scammer claims to have a new number and says they are in trouble, all in the “hope of being sent money”.
A major red flag is that scammers often request to be paid “through gift cards or wire transfers” so victims “have no way to ever recover their money”, said the National Council on Aging. This scam is seen as particularly effective “because it exploits people’s emotions”.
Authorised push payment fraud
Victims can “lose their life savings in a matter of seconds” from authorised push payment (APP) fraud, said Age UK.
This involves scammers pretending to be the police, a government department or your bank and “tricking people into transferring money” to an account under their control.
This type of scam is “more attractive” to criminals because they can “quickly take the money and run”, said FICO.
Romance scams
Romance scams involve fraudsters setting up a fake profile to steal money. Scammers lure in their victims with the promise of a genuine relationship, gaining trust before requesting funds.
Victims aged between 75 and 84 lost £9,054 on average in 2024 from romance scams, said Lloyds Bank, 52% more than all other age groups.
Scammers often target older people, said the Daily Express, who are seen as “less tech savvy and more likely to be keen to forge a new relationship”.
Modelling scams
A “new twist on a well-known scam”, said the BBC, is fake modelling agencies aimed at older people who may be searching for opportunities in retirement, or to branch out with a side hustle.
These “phoney modelling agencies” have been taking cash from “desperate” young people for years, and scammers have “found a new target” – older people.
AI scams
National Trading Standards has warned of a “new and advanced” phone scam that uses artificial intelligence (AI) to clone voices, said Which?.
It appears to be targeting older people, using the “ruse of a ‘lifestyle survey’ cold call”. The survey responses given are used to create “AI-generated voice clones” to then start direct debits “without your knowledge”.
How to protect yourself from scams
Scams can often be “sophisticated” and therefore “difficult to spot”, said the Financial Conduct Authority. But there are “warning signs” to look out for.
You can protect yourself by “treating all unexpected calls, emails and text messages with caution”, and check the FCA register online to see if a firm asking about financial products is regulated.
If you think you have been scammed, “act quickly to help limit the damage”, said MoneyHelper. Contact your bank or card provider “immediately” using their official phone number, and stop any further payments “straight away”.
Those who are targeted can also highlight the matter to Report Fraud.