Scams Targeting the Elderly and How to Protect Our Parents From Them

Find out about scams that seek out the elderly and what you can to stop your parents from becoming victims to potential fraudsters!

Your parents and elderly relatives may often attract the attention of scam artists for a number of reasons. First off, your folks may be perceived to have big retirement funds and this will instantly make them an attractive target for fraudsters. But more importantly, scammers play on the sentiments of seniors who want to contribute more financially.

Here’s a list of scams that tend to target your parents and what you can do to shield them from it:

1. Pyramid Schemes

While there are legitimate MLM businesses in operation, some are actually more similar to pyramid schemes. Parents and elderly relatives who are hoping to still earn or are bored and looking for profitable activities may become involved in scammy MLM-type businesses.

Your parents may be asked to buy unsellable products at hefty prices, pay a large sign-up fee for materials and selling tools or attend special and expensive training.

It’s likely that you’ll be alerted to scams like these because your folks and others involved in these types of ventures will often sell the products to those they know first. Unfortunately, at this point, it’ll probably be too late to get their money back. Thus, it might be a better idea to inform your parents about these potential scams now to help them avoid getting tangled up later on.

Read also: How To Spot a Multi-Level Marketing Business

2. Hajj and Umrah Scams

Muslims both young and old who seek to perform Umrah and Hajj are at risk of scam packages. In fact, earlier this year the New Straits Times reported that in the last five years almost four thousand people have fallen victim to such scams. The scams operate by offering very cheap packages for the pilgrimage that turn out to be non-existent.

What you can do to help your parents is to check for them with the Saudi Haj ministry on the approved list of travel agents in Malaysia or the Tabung Haji list before buying a package. You can also assist with travel plans and check out the standard rate for these packages by shopping around. Advise your parents against choosing packages that offer discounts of 40% or more than the norm – unless under a government subsidy.

3. Sweepstakes or Contest Scams

These scams often pop up on the internet, email or via text messages and some can appear so appealing that it may be hard for your elderly parents to turn down. Especially if they are facing money difficulties, the potential to win big is definitely tempting, for anyone.

Responding to these types of scams usually work by asking the intended target to send upfront payments to redeem their lottery or sweepstake winnings. They even use popular company names to gain the trust of their intended targets. Online it can be dangerous as well as scam artists may try to steal private banking information from your parents or even install viruses. Do guide your folks on safe internet and smartphone usage to keep them from falling prey to such scams.

4. Real Estate Scams

This is an old school scam which targets the elderly and young alike. But the difference is that your parents may not have access to conduct the necessary searches to determine if a deal is real or fake. It usually involves a plan to sell a piece of land that the scam artist has no right to sell. It’s also possible that the land does not exist and that titles have been forged altogether.

Note that it is very difficult to recoup losses because these operations are so slick that the perpetrators are almost impossible to locate and prosecute once the bad deed is done.

Thus, it’s best to let your parents know that you are there to help them look into any potential investment ideas that they may have. Help them do their homework before forking out any money; make an enquiry with the Land Office to check if the title is genuine and do hire a lawyer when conducting land purchases.

5. Medical Supplement and Health Care Scams

As they age, your parents will likely not be as vital and healthy as they used to be. They may suffer from aches and pains, be tired and easily fall ill. So naturally, if a scammer approaches them with a miraculous pill or doctor that can heal or make them younger, you can’t fault them for wanting to buy what is being sold.

These supplements and remedies can be very expensive but worse still can be detrimental to health. Advise your parents to buy medical insurance or buy it for them to help improve their health via certified doctors and top hospitals without having to worry about the costs.

How to Deal with Your Parents and Shield Them against Potential Scams

Although this seems like more work for you, know that your parents and elderly relatives certainly do need the help. Here’s what to do:

  • Advise your parents not to make known their financial situation. Ask them to refrain from informing friends and even other relatives about their retirement money or stipends.
  • Ask them to come to you or a trusted family member if they intend to open a business or spend large amounts of money. Your parents might not appreciate being monitored, so just let them know that you are there to talk if they need and not for approval.
  • Be open and understanding and don’t shame them when they do come to you. If they are embarrassed, they may not come to you again and fall prey in the future.
  • Consider hiring an executor or certified financial planner for parents who are less lucid in order to protect their money.

If you are looking to buy a healthcare policy for your folks, do check out our comparison page for a list of the most affordable plans with the best terms available!


Agree or disagree with this post? Questions? You also have your word!


    Agreed and good advice. Another thing is to ensure that agents of legitimate investment schemes also do not mislead ignorant elderly people from parting their money. I was at a bank recently when one of the investment officers promoted the PNB Unit trust scheme, i.e. Amanah Saham Gemilang. She said the dividend income is about 6-7%, similar to the popular ASM, ASW and AS1M. Since ASM, ASW and AS1M are fully subscribed, we can go for ASG to get similar returns. I knew ASG is similar to other unit trust which typically charge 5-6% upfront commission and floating NAV according to the market. Not at all like ASM, ASW and AS1M which do not charge any commission and their unit value is fixed. Quoting 6-7% annual dividend returns for ASG is misleading since the NAV of unit trust will be reduced accordingly with the rate of dividend, and investors are back to square one. The only real returns is the appreciation of NAV when the market is good but this is never guaranteed. This was not mentioned and the agent make it out as if ASG is exactly like ASM/ASW/AS1M. Yes, ASM/ASW/AS1M are also not guaranteed of returns but since 2001, their track record shows a real returns of 6-8% with no reduction in NAV and no commission charged. Unit trust with floating NAV may not be suitable for retirees who require immediate use of their funds. Unit trust are meant for long term investment and only suitable for those who may have other sources of income and need not touch their retirement funds for many years to come.

    • Ooi

      I have been cheated through binary options. The company name is Perpetual Formula, Option Rally and Omega Options.
      We may make money through trading but cannot withdraw our money.

      • sharon

        Can I know what is the package for medical card for parents.