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What Americans Need to Know About Elder Fraud

Protecting Yourself Against Elder Fraud Abuse

I recently read several articles posted online about the rise in elder fraud and how federal government agencies are dealing with them. One stands out by Laurie Archbald-Pannone is an associate professor of medicine and geriatrics from the University of Virginia that was originally published in The Conversation.

Losses do to Fraud

In 2023, Americans over 60 submitted 14% more complaints about elder fraud abuse to the FBI's Internet Crime Complaint Center, or IC3, than they did the previous year. Estimated financial losses rose about 11% over the same period, according to the IC3’s 2023 Elder Fraud Report, released on April 30, 2024. 

Americans ages 60 and older lost more than $3 billion to scammers in 2023, according to the FBI. These figures don’t include a large number of scams that take place over the phone, by mail, or in person. And many fraud victims never report their experiences, often because they're embarrassed, afraid, or unsure what to do. 

Archbald-Pannone says that the consequences can be worse than just losing money. The experience is traumatic for many, with some victims feeling deep shame and self-doubt in the aftermath. They may wonder how can this happen to them. This can interfere with their relationships, erode their trust in others, and harm their mental and physical health.

The Federal Trade Commission (FTC) encourages the public to be careful and not to provide personal identifiable information (PII), such as a social security number, or money in response to these false claims. If you have received a scam phone call, email, or message, you should report it to the FTC.

Elder Fraud is Increasing Elder fraud

Older adults are uniquely vulnerable to fraudsters. They may be trusting, gullible, wanting to please others, non-confrontational, and are reluctant to reach out and seek advice on propositions. They often have financial savings and other investments, as well as good credit, which makes them targets for scammers. 

Older adults may also be less comfortable with new technologies, which puts them at risk. Consider that someone who is 85 years old may have retired in 2004—three years before Apple introduced the iPhone. While many forms of technology have permeated our personal lives, it’s often in the workplace that people receive mandatory training, like how to avoid online scams.

In 2023,  tech-support scams were the most commonly reported type of elder fraud. Other common schemes include online shopping swindles and investment frauds. While tech scams are the most common, investment scams are the costliest, accounting for nearly half of all reported losses  from those ages 60-plus last year.

Fraudulent call centers are also well known for targeting older adults. Such scams made up 40% of reported elder fraud cases in 2023, according to the FBI, accounting for at least $770 million in losses. Many scams use new technologies such as AI to deceive people more effectively with voice-cloning scams  or deepfake videos.  

Call-center scammers tell all sorts of tall tales. In 2022, more than 600 people reported being victimized in a single timeshare-related fraud. Collectively they lost nearly $40 million. And in the latter half of 2023, scammers posing as government officials and tech-support agents pushed victims to liquidate their assets or buy precious metals—with reported losses reaching more than $55 million.

One scam above all else is particularly egregious. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.

The criminals who carry out romance scams are experts at what they do and will seem genuine, caring, and believable. Con artists are present on most dating and social media sites.

The scammer’s intention is to establish a relationship as quickly as possible, endear himself to the victim, and gain trust. Scammers may propose marriage and make plans to meet in person, but that will never happen. Eventually, they will ask for money, perhaps through access to your bank account.

Protecting Yourself Against Scams

The main tool for preventing fraud is learning how to identify likely scams ahead of time. Here are a few FBI-approved tips to help you do that according to 

  • Be cautious of unsolicited phone calls, mailings, and door-to-door service offers.
  • Don’t click on any unsolicited links you receive via email or text—even if they seem to be from people you know. And never open an email attachment from someone you don’t know.
  • If you’re in doubt about a person or business, search online for their name, email, phone number, and addresses, as well as details about their proposed offers. These days, most legitimate businesses have some degree of web presence. 
  • Never give or send anything to unverified people or businesses. This includes any personally identifiable information, money, jewelry, gift cards, checks, or wire information.
  • Make sure your computer antivirus and security software and malware protections are up to date.
  • Bad actors can use pop-ups to spread malicious software. If you see a pop-up message, disconnect from the internet and shut down your device. You can enable pop-up blockers to avoid accidentally clicking on one.
  • Don’t give anyone you don’t know remote access to “fix your computer” or other electronic devices. This could let them see personal information, including details about your financial accounts.
  • If you’re told to lie to your bank about why you need to wire money or make a withdrawal, it’s probably a scam. A legitimate business won’t insist you keep secrets from family or friends either.
  • Resist pressure to act quickly. This is a big one: Scammers often create a false sense of urgency. A legitimate business will let you think through your financial decisions.

I have found the best approach to  prevent falling victim of elder fraud is to trust my instincts. As the saying goes, “go with your gut.” If it sounds too good to be true, it probably is.

Posted by Steven Mintz, Ph.D., aka Ethics Sage, on July 9, 2024. You can sign up for his newsletter and learn more about his activities at: https://www.stevenmintzethics.com/.

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