Elder Fraud Awareness and Prevention
According to the FBI’s Internet Crime Complaint Center’s (IC3) 2023 Elder Fraud Report, frauds targeting individuals aged 60 and above resulted in over $3.4 billion in losses in 2023. This represented an increase of nearly 11% from 2022. Older adults are a frequent target of scammers as they tend to be perceived as more vulnerable, trusting, less technologically savvy, and tend to have considerable funds saved for retirement. Additionally, elder fraud frequently goes unreported due to shame associated with falling victim to the scam.
Per the IC3’s 2023 Elder Fraud Report, the following are the top 5 most frequently reported frauds to the IC3 related to elder fraud:
• Tech support fraud – This is a type of scam where a fraudster pretends to oTer technical support services, posing as a legitimate company like Microsoft. In many circumstances, these individuals will use technical terms to make it appear as if there are legitimate issues with your personal computer. They will then ask to gain remote access to your device, allowing them to install malware on your device, giving them access to sensitive data. In 2023, total reported losses were nearly $600 million.
• Personal data breach – A personal data breach occurs when there is an unauthorized or accidental security breach that results in the loss or access to personal data. This can include sending personal data to the incorrect recipient, whether accidentally or unknowingly through a phishing scam, or theft of a device that contains personal identifiable information.
• Romance scams – Per the FBI, in a romance scam, a criminal uses a fake online identity to gain a victim’s affection and trust, then uses the nature of their “relationship” to manipulate and ultimately steal money from the victim. Fraudsters prey on individuals searching for a human connection, and gain access to their personally identifiable information, or convince the individual to send them money directly. In 2023, total reported losses were over $350 million.
• Non-payment/Non-delivery scams – In a non-delivery scam, an individual makes a purchase online, typically sparked by the offer of a deep discount from a website that may be lesser known. The purchased product is then never delivered, and the “seller” of the product is unreachable. This is a scam to especially be aware of as we are entering the holiday season.
• Investment scams – In an investment scam, a fraudster promises guaranteed high returns with minimal risk in a fake investment opportunity. Scammers create websites and other informational materials that appear legitimate, and often use language indicating that the opportunity is limited and a sense of pressure is created around making the investment. Seniors are frequently targeted in these types of schemes as these individuals typically have retirement funds available for investing. Recently, these schemes have involved cryptocurrency investment opportunities. In 2023 alone, reported losses to the IC3 were over $1 billion.
There are several warnings signs to be aware of that could indicate that someone in your life has become a victim of a fraud scheme. Some things to be aware of include:
• Mood changes or heightened levels of stress.
• Abnormal spending behavior.
• Sudden changes in any estate-related documents.
• Excitement related to a new investment opportunity that deviates from that individual’s typical investment strategies.
• Mention of any new people in the individual’s life.
Prevention
With the continued advancements in technology, it is more important than ever to be vigilant in not only personal fraud prevention, but being able to identify and communicate this information to protect your older friends and family members.
The following are some steps to take to avoid the scams noted above:
• Do not respond to calls or texts from unknown numbers.
• Never give remote access to your computer to an individual who contacts you unexpectedly.
• Do not send money to someone you have never met in person.
• Never click on links or attachments in any unsolicited e-mails or text messages.
• Do not share your personal identifiable information with an unknown individual, especially via e-mail or text message.
• Be aware of where you are doing your online shopping – if you’re making a purchase at a new website, do some research before clicking purchase.
• Seek advice from a trusted financial advisor before making any investment decisions.
• Never make an investment decision when pressure is involved.
• Frequently monitor your credit score and report any potential fraud to your credit agency.
If you think that you or someone you know may have been a victim of fraud, it is important to contact law enforcement immediately. Additionally, you can file a complaint with the FBI’s Internet Crime Complaint Center.