In this forum from KET’s Next Chapter initiative, Renee Shaw and experts answer viewer questions about common forms of fraud targeting older adults and discuss consumer protection tools.
Here are three takeaways from the forum:
- 1. The number and variety of scams are growing, and perpetrators use all available means to prey on victims’ vulnerability – including new technologies.
Kyle Erhardt, U.S. Postal Service inspector for the Lexington domain, says that two forms of fraud commonly targeting seniors are lottery scams and deceptive romantic schemes.
For lottery scams, “people are contacted and told they’ve won a lottery, usually in another country, and in order to get funds from that, they are required to pay taxes,” Erhardt says. “And once those taxes and fees start, they never really end.”
Two other common types of fraud in Kentucky are fake investment plans and arrest warrant scams, says Shellie May, executive director of the Office of Senior Protection and Mediation with the Kentucky Attorney General’s Office.
In the latter, May explains that victims typically get a text message or email that spoofs a government agency such as the county sheriff’s department, stating that an arrest warrant has been issued, often for outstanding traffic tickets.
The fraudster will request a Bitcoin transfer or gift cards, May says. “And they tell you that you cannot break the phone call – if you do, then they are likely to go ahead and use your GPS location and come arrest you.” May notes that law enforcement does not contact persons with outstanding warrants before arresting them, but concedes that often people are so fearful of the threat that they don’t think about procedure.
Similarly, Chad Harlan, assistant director of securities at the Kentucky Department of Financial Institutions, says that another type of scam occurs when criminals impersonate government officials and tell seniors that they have been victims of fraud and need to send in their remaining assets for “safekeeping” while an investigation commences.
“We see that (liquidation) in crypto, and we see it now evolving from crypto to gold bars,” Harlan says. “They’re telling people to go purchase gold and turn it over to a courier.”
According to Heather Clary, community and media relations coordinator for the Better Business Bureau Greater Kentucky Region, the highest amount of money lost through scams last year happened with online purchases.
“And we’re also seeing, sadly, in terms of finances, advance fee loan scams,” Clary adds, “where seniors are needing some type of money to bail themselves out of debt, and (the scammer) needs a fee upfront. That’s illegal.”
- 2. Many victims of scams are ashamed of being duped or are wary of telling authorities of how much money they lost, and don’t report incidents. But they should, because doing so assists law enforcement, investigators, and senior advocates in tracking down criminals and developing counter-strategies that will reduce fraud.
Southern Indiana resident Mary Ellen Strange first appeared on KET in 2025 to share her story of being swindled out of nearly $400,000 by scammers posing as federal authorities. Tasha Stewart, information officer with the Kentucky Department of Financial Institutions, praises Strange’s willingness to come forward.
“A lot of people, you know, they just won’t talk about the scams for the stigma… but by sharing her story, Ms. Strange is really breaking down that stigma and starting the conversations we need to be having,” Stewart says.
Kate Dieruf, assistant U.S. attorney for the eastern district of Kentucky, says that it’s important to report scams as quickly as possible since many perpetrators exist outside of the U.S. and aim to transfer victims’ assets to their location.
“The statistics are pretty rough,” she says. “What we’ve been told for years is that about one in 44 people report their victimization.”
Victims should contact law enforcement as soon as they realize their personal data has been breached or money has been taken, Dieruf advises. “If it’s an emergency, report to 9-1-1, that’s the only source, but if it’s not an emergency, you can report the scam to local law enforcement, or to the FBI, and if it involves the computer, to ic3.gov or the Internet Crime Complaint Center.”
If a scammer deals in cryptocurrency, timeliness in reporting fraud becomes even more important, says Chad Harlan.
“Historically, we’ve been able to go to a bank and find the account where the victim’s check was deposited and find the fraud,” he says. “But with crypto, literally in under five minutes it can be in another country and withdrawn, out of U.S. jurisdiction and extradition.”
- 3. There are resources in Kentucky and nationally to educate seniors about how to avoid scams and to help them if they do fall victim to a fraud.
Gary Adkins, AARP Kentucky volunteer state president, says that the organization’s Fraud Watch Network collects tools for members to use that helps them stay ahead of any developing fraud trends across the state and specifically in their area.
“You can get bi-weekly alerts through the Fraud Watch Network, you can hear real fraud and scam stories, you can contact a fraud specialist through our help line, and there’s a support group you can join,” Adkins says. “Also, if you’ve been a victim of (fraud) and a survivor, you can talk with other people about that to get you through, and they can help you find sources that you can report the fraud to.”
In addition to keeping track of their finances through bank websites, seniors should check their credit regularly, says Shellie May from the Kentucky Attorney General’s Office. She notes that free online credit reports are available weekly at AnnualCreditReport, authorized by federal law.
In order to get more security, May says that persons can freeze their credit and prevent anyone from accessing the files by contacting online credit bureaus personally or paying for a service such as LifeLock.
“You can sign up and they will monitor your credit for you and alert you if something has taken place, and flag that for you,” she says.
Most folks using smartphones receive the occasional text message from an unknown number offering a financial deal that’s too good to be true.
“Just don’t entertain (the messages),” advises Kyle Erhardt from the U.S. Postal Service. “Don’t give that person an audience.” Shellie May warns that responding will mark the recipient’s phone number as having a human recipient, making them more susceptible to phishing messages in the future. Instead, May recommends reporting phishing messages to the phone company, which will collect and archive the number it comes from into a database that is shared by government agencies.
Gary Adkins says that criminals use three elements to extract personal information from victims: unexpected contact, an emotional appeal, and a sense of extreme urgency.
“You have to pause, reflect, and protect – that’s the key thing,” he cautions. “The Fraud Watch Network has trained specialists that can talk to individuals when they call in about what has happened, and they can talk you through it, help you deal with it, and refer you to a reporting agency.”
Lastly, one valuable, yet often overlooked, step seniors should take any time they have a suspect interaction online is to change their passwords, says Kate Dieruf, assistant U.S. attorney.
“Anytime, anywhere something feels amiss, do a password reset on your most important accounts, your bank accounts, anything that’s going to have your personal information,” she says. “That’s not hard to do.”
