INDIANA – As our population ages, a disturbing trend has emerged – the rise of “elder fraud,” targeting vulnerable seniors across the nation.
Recent statistics show a troubling rise in elder fraud in the USA, with incidents up 14% in 2023. With advancements in AI technology, scammers can now impersonate voices with chilling accuracy, making it even harder for the elderly to discern fact from fiction.
Trevor Cooke, Privacy Expert at EarthWeb, warns of the five most prevalent elder fraud scams plaguing our communities.
Impersonation Scams
According to the findings of the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center (IC3), people who are at least 60 years old and beyond lost over $724 million to scams in 2022, including those involving the impersonation of government agency representatives. The total loss amount was more than all the other age groups combined.
In impersonation scams, unscrupulous people use AI technology to copy the voices of loved ones or public officials, tricking seniors into providing sensitive information or giving out money.
Fraudsters use personal information, often gleaned from social media or data breaches, to pose as distressed relatives or authoritative figures demanding urgent action.
Similarly, scammers posing as IRS or Social Security officials can instill fear by threatening legal action unless immediate payments are made.
“Always verify the caller’s identity through alternative channels,” says Trevor.
Robocalls and Phishing Scams
According to 2023 data, a shocking 33 million robocalls are made to Americans daily. Elderly people are more susceptible to these kinds of calls.
Automated calls and emails lure seniors into sharing personal data or clicking on malicious links.
A typical robocall or phishing scam might claim that seniors will lose access to their Social Security if they don’t turn in thousands of dollars or renew an insurance policy, urging them to press a number to connect with a representative.
Despite regulations attempting to curb robocalls, they remain a significant threat due to their volume and sophistication.
“Hang up immediately and never provide information over the phone or via email,” he cautions.
The Grandparent Scam
In Canada, seniors reported more than $9 million in losses after being victimized by ‘The Grandparent Scam’ in 2022—much higher than the $2.4 million reported the previous year.
In this scenario, scammers call pretending to be a grandchild in urgent need of money, usually for an emergency like an accident or arrest. The emotional appeal overrides the senior’s usual caution, leading them to send money quickly without verification.
“Verify the situation with other family members before sending any money,” Trevor emphasizes.
Sweepstakes and Prize Scams
In 2022, the IC3 received over 2,300 reports of elderly people victimized by sweepstakes scams. In total, victims lost nearly $70 million.
In this scam, seniors are promised lucrative prizes or winnings but must pay upfront fees or taxes.
These scams can be particularly damaging, as they often involve repeated payments and ongoing communication, fostering a false sense of trust.
“Legitimate sweepstakes never require payment in advance,” he warns.
Investment and Charity Scams
The FBI said investment scams were the costliest fraud against elderly people in 2023, causing victims over $1.2 billion in losses.
Fraudsters using this scheme pose as financial advisors or charitable organizations, soliciting donations or investments in non-existent schemes.
“Always research and verify the legitimacy of any organization before making contributions,” Trevor advises.
To mitigate the risks, Trevor recommends seniors remain vigilant, never share personal or financial information over the phone or email, and consult trusted family members or authorities before acting on unsolicited requests.
“Education and awareness are key to protecting our elders from these heartless scams,” Trevor says.
Methodology
The data on elder fraud in 2023 was taken from the FBI’s 2023 Edler Fraud Report.
The data on impersonation scams came from a National Council on Aging report.
The data on robocalls was taken from a National Law Consumer Center report.
The data on grandparent scams was taken from a 2023 report of the Royal Canadian Mounted Police, Canadian Anti-Fraud Centre, and Ontario Provincial Police.
The sweepstakes and prize scam data came from the FBI’s 2022 Elder Fraud Report.
The data on investment scams came from the 2023 findings of the FBI.
EarthWeb provided this information.
