Industry trends suggest that a new category of crime, especially of the digital variety, is on the increase. This has been dubbed ‘elder fraud’, referring to specific criminal activity that is targeting seniors.
Elder fraud is simply where fraudsters target those from the elderly community. In particular, there is an attempt to take advantage of those who are not tech-savvy, says cybersecurity expert Brandon King (from Home Security Heroes). King has compiled a list of tips to spot and prevent fraud, which he has shared with Digital Journal.
What is elder fraud and who are the targets?
According to King: “Fraudsters target seniors in elder fraud by tricking them into giving sensitive information or offering fake financial benefits. Perpetrators could be strangers or known to the elderly, like family, friends or colleagues, and victims can lose their savings and suffer devastating consequences.”
King adds: “Older adults are a prime target for fraudsters. They normally target victims in retirement or close to retirement as they have a steady income, excellent credit history and more savings than younger people.”
The most common scams for elders to look out for
King proceeds to detail the more serious fraud schemes:
Grandparent scams
Scammers often pose as the victim’s grandchild to dupe seniors into sending money urgently for emergency expenses like overdue rent or car repairs. They often ask for secrecy, and in one case, an elderly woman was scammed of $20,000 by someone posing as law enforcement in 2019.
Romance scams
Romance scams often target women 50 and above, but men can be victims too. Scammers will usually target seniors who have lost their spouses and are looking for companionship. An example of would-be perpetrators requesting money transfers or gift card vouchers sent to an email address.
False charity scams
Fraudsters may pose as representatives from a real charity or create fictitious charity organizations. They can make calls, text, or send emails. In some cases, they may even visit seniors in person. False charity schemes commonly happen after a significant event, like a health crisis, global socio-political campaigns, or a natural disaster.
What are some other common types of elder fraud?
Unfortunately, notes King, there are other concerns: “Protecting seniors from scams is crucial, as scammers use various methods to steal personal information and money. Elder scams include fake medical schemes, investment scams, and phishing emails, taking advantage of the complexity of the healthcare system and seniors’ fixed income. To avoid falling victim, seniors and their loved ones should research charities, verify emails and phone calls, and be cautious of unsolicited requests for money or personal information.”
Additionally, seniors should beware of insurance coverage scams, romance scams, government impersonation, sweepstakes and lottery scams, identity theft, and tech support scams. Taking precautions and being aware of these scams can help prevent them.
Tips to prevent seniors from being scammed
King outlines some tips to stay safe from scammers, aimed at seniors:
- Stay connected to your loved ones to prevent isolation, which makes them more vulnerable to scams.
- Warn them never to share sensitive information and explain why.
- Help them create strong, unique passwords and avoid reusing them.
- Limit online shopping to trusted retailers and check for secure websites.
- Never click on suspicious links in emails, social media messages, texts, or take calls from fake caller IDs.
- Monitor monthly banking statements for signs of identity theft or unauthorized accounts. Shred statements before disposing of them.
- Protect social media accounts by only accepting friend requests from people they know, updating privacy settings, and using multi-factor authentication. Delete messages from strangers and avoid odd payment types.
- Encourage your parents to name you as a Trusted Contact Person to speak with their financial advisors if there are concerns.
- Warn other family and friends if one of your loved ones has experienced a scam attempt. Discuss how to prevent fraudulent attempts.
What to do if a senior has been a victim of elder fraud
If something troubling has happened, King advises: “It’s important not to panic and to stay calm. Document everything that has happened, including phone call logs, text messages, and emails, and report the scam and the person’s bank and credit card providers.”
Furthermore, says King: “File a report with the local police and change all passwords to stronger ones, including social media accounts and investment profiles, setting different passwords for each site.”
