Elder Fraud: Protecting Seniors from Financial Scams
Millions of older Americans are targeted by elder fraud each year, falling victim to scams that exploit their trust and financial resources. With the right knowledge and resources, individuals can protect themselves and their loved ones from becoming victims of these frauds.
Elder fraud encompasses various financial crimes that specifically target older individuals, including telephone, internet, and mail scams. According to a 2017 study in the American Journal of Public Health, as many as 1 in 18 cognitively intact, community-dwelling older Americans become victims of elder fraud annually. These are generally trusting individuals who may not expect to be targeted by scams.
In 2018, the Federal Bureau of Investigation reported criminal cases against over 260 scammers who victimized 2 million Americans, resulting in losses exceeding $700 million. However, these figures may only represent a fraction of the actual problem. Other estimates suggest that up to 5 million Americans fall victim to elder fraud each year, with annual costs ranging from $2.9 billion to $36.5 billion, according to the National Council on Aging. It is important to note that these estimates may underestimate the true extent of the issue.
There are several reasons why scammers target seniors. Older Americans often possess a trusting and polite nature, having been raised during a time when these values were instilled. Scammers exploit these traits, knowing that older individuals are less likely to say no to their schemes. Additionally, seniors are often targeted due to their potentially substantial savings and assets.
Scammers employ various methods to reach their targets, including email, online dating sites, phone calls, traditional mail, or even personal visits. They may present themselves as friendly or sympathetic, or resort to threatening tactics. However, regardless of the approach, it is crucial to educate oneself and older relatives about the signs of fraud and how to respond.
One reason elder fraud can go unreported is that older individuals may not know who to report it to or may hesitate due to fear or embarrassment. Scammers also rely on the effects of aging and memory, as victims may not realize they have been scammed until weeks or months later. This can make it difficult to recall essential details that could aid law enforcement in pursuing the case.
To protect personal data and financial security, it is important to be aware of the following:
Educate Yourself and Seniors: Stay informed about common scams and share this knowledge with older relatives. Be aware of new tactics employed by scammers.
Guard Personal Information: Be cautious when sharing personal information, especially over the phone or online. Never give out Social Security numbers, bank account details, or other sensitive data unless certain of the recipient's authenticity.
Verify Contacts: If someone contacts you claiming to be from a reputable organization or company, independently verify their identity before providing any information or money. Contact the organization using a verified phone number or email address.
Be Wary of Unsolicited Offers: Be cautious of unsolicited offers or requests for money. Scammers may claim that you have won a prize or that a relative is in urgent need of financial assistance.
Use Secure Channels: When conducting online transactions or sharing personal information, ensure the website is secure (look for the padlock symbol in the address bar) and use trusted payment methods.
Stay Up-to-Date on Security Measures: Keep your computer and mobile devices updated with the latest security patches, and install reliable antivirus software.
Report Suspicious Activity: If you suspect fraud or have fallen victim to a scam, report it to your local law enforcement agency, the Federal Trade Commission (FTC), or the Consumer Financial Protection Bureau (CFPB).
Stay Engaged: Loneliness and social isolation can make individuals more vulnerable to scams. Stay connected with friends, family, and community groups to maintain strong support networks.
Seek Professional Advice: Consult with a trusted financial advisor or attorney to review investment opportunities and financial decisions.
Utilize Resources: Organizations like the AARP Fraud Watch Network, the FTC, and the CFPB provide valuable resources and information on how to recognize and prevent elder fraud.
Preventing elder fraud requires vigilance, education, and a proactive approach. By equipping themselves with knowledge and taking necessary precautions, seniors can protect their financial security and avoid falling victim to these schemes.
Sources:
American Journal of Public Health: Financial Exploitation of Older Adults: A Population-Based Prevalence Study
Federal Bureau of Investigation: FBI Releases the Internet Crime Complaint Center 2018 Internet Crime Report
National Council on Aging: Fact Sheet: Elder Financial Abuse
AARP Fraud Watch Network: Elder Fraud
Federal Trade Commission: Report Fraud
Consumer Financial Protection Bureau: Submit a Complaint
Please seek the advice of a qualified professional before making decisions about your health or finances.
