Financial fraud targeting seniors is increasing and will likely continue to do so. The elderly face an increasing risk of being scammed because they are the scammer’s preferred target, possibly because they are less informed about scams or do not understand the risk. They also usually have more money than younger people.
In 2022, Consumer Affairs reported that seniors older than 70 often lose about 1.5 times more money when scammed than those 69 or younger. People over 80 often lose 1.75 times as much as those in the 70–79 age group.
Even though programs attempting to educate seniors and others about scams have increased, so have the types of scams and losses. In 2023, there was an increase of 14 percent in the amount of money lost because of financial scams targeting seniors. Identity theft using credit cards, CompariTechreveals, is the most common type in 2022, resulting in more than 441,000 cases.
Contact Methods Used
The most popular way that fraudsters contact seniors is through email. Twenty-four percent of contacts in fraud cases were through email. Phone contacts ranked second, with 20 percent of them contacted through this method. Even though phone contacts were the second most common method, they yielded a much higher financial loss among seniors than through emails—twice as much was lost.Most Common Form of Elder Abuse
According to the Anti-Financial Crime Briefing, elder financial abuse affects as many as 10 percent of seniors each year. There has been a minimum loss of $3 billion annually since 2019. It is the most common form of elder abuse in the United States.As much as 46 percent of elder financial fraud occurs from the elderly getting scammed by family. Many methods enable family members to gain power over the elder’s finances, ranging from deception, physical coercion, power of attorney arrangements, and fraudulent investments. Other methods family members use include stealing their Social Security checks, transferring assets, liquidating bank and investment accounts, and maxing out credit cards.
Most Common Types of Elder Financial Scams
Financial scams come in many forms. People of all ages fall for them, but older seniors seem the most vulnerable. Here are some of the ones listed by Consumer Affairs:- family imposters
- tech support scams
- investment scams
- romance scams
- fake sweepstakes and lotteries
- real estate and home repair scams
- government imposters.
Social media is also used to perpetrate fraud against the elderly. Although it is not nearly as common as other methods, it is growing. Social media scams rose from netting $19 million in 2019 to $380 million in 2023.
The National Council on Aging (NCOA) warns of a common robocall that scammers use. The scammer will ask: “Can you hear me?” The senior will typically answer “Yes,” and record their voice. The scammer then immediately hangs up. What the senior may not know is that the recorded “Yes” gives the scammer a voice signature that they can use to put unauthorized charges on stolen credit cards.
How to Recognize Elder Financial Abuse
Knowing how to recognize elder financial abuse can help stop it, even if it has already occurred. The Bank of the Rockies reveals some ways to identify it:- unexplained and large withdrawals from various accounts
- changes in behavior or emotions when mentioning finances
- sudden changes to their wills or powers of attorney documents
- changes in their living conditions, food supply, neglect, dehydration
- a new “friend” who is glad to help the senior with financial transactions
- having new fear, social withdrawal, missing medical help, lack of hygiene
The Seniors Most Susceptible to Elder Fraud
Through various studies, researchers have discovered that certain people are more susceptible than others to fraud. CNBC says that women are more susceptible than men to being scammed. They are even more likely to become a victim if they are living in poverty and are poor.
Men and women who are lonely, have social isolation, and may be experiencing some degree of declining mental abilities are also more susceptible to financial scams that target the elderly. Another factor, the NCOA says, is that older people are slower to learn new technology. It makes them more susceptible to emails and phishing scams that ask for personal data.
The susceptibility that older adults often have makes them easier targets of scammers. The only way to help them avoid scammers is to get them to rely on others to help them. Apart from this, Rand says, there is no other way to protect them from financial scams.
Reporting Elder Fraud
The older that seniors get, the less likely it is that thefts will be reported. CompariTech indicates that only 23 percent of the thefts of finances from 70- to 79-year-olds get reported. Financial crimes against seniors over 80 are only reported in 22 percent of the cases.You can report elder financial fraud, Justice.gov says, to the Elder Fraud Hotline at 1-833-372-8311 on workdays between 10:00 a.m. and 6:00 p.m. You can also contact your local police department or sheriff.
The Consumer Financial Protection Bureau offers several guides that discuss how to manage other peoples’ money. They have PDFs for power of attorney, trustees, court-appointed guardians, and government fiduciaries, and they are available in English and Spanish.
Protecting your loved ones from criminals wanting to scam seniors and helping to prevent elder financial abuse requires alertness and giving information to your senior loved ones about possible scams. You also need to be aware of new scams through information available to the public.
The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
