Elder fraud is a growing concern in the US, with con artists targeting senior citizens, exploiting their social isolation, loneliness, and cognitive decline.
Research indicates that feelings of loneliness and cognitive decline increase susceptibility to fraud among older individuals, highlighting the need for heightened awareness and protection.
Women, particularly older women living alone and in poverty, are at a higher risk of becoming victims of elder fraud, with cybercrime alone costing Americans aged 60 and older $3.1 billion in 2022, according to FBI data.
The threat of financial fraud is ever-present in our increasingly digitized society, particularly for senior citizens.
The threat of financial fraud is ever-present in our increasingly digitized society, particularly for senior citizens. (Photo : by GENYA SAVILOV/AFP via Getty Images)
Rising Threat of Elder Fraud in the US:
In the US, elder fraud is on the rise, and con artists are getting more and more crafty. They prey on the elderly, frequently taking advantage of their social isolation, loneliness, and occasionally deteriorating cognitive capacities.
It turns out that they are the most susceptible people. According to a recent University of Michigan research, older persons who report feeling alone or isolated are more likely to fall victim to fraud than those who say they are content with their life and social networks. In the meanwhile, studies from the National Library of Medicine have been released that relate cognitive decline to a higher susceptibility to frauds.
However, those far younger than 80 are also at risk from these thieves; they are not merely aiming their crimes at the elderly. The latest FBI Elder Fraud Report indicates that over 88,000 persons over 60 were the victims of financial frauds in 2022 alone.
The Women's Institute for a Secure Retirement reports that since there are more women than males over 65 and because older women are more likely than older men to live alone and in poverty, women are more likely to become victims of elder fraud.
According to FBI data, cyber crime cost Americans 60 and older $3.1 billion in 2022, with an average loss of $35,101 per victim. Each of the almost 5,000 elderly individuals lost more than $100,000.
Elder fraud schemes come in many forms, from impersonation scams to email phishing, and they are all intended to trick and trick their victims into divulging private and financial information. It might be difficult to resist fraud strategies as they get increasingly complex for those who don't see the warning indications.
According to TransUnion research, the Covid-19 pandemic's greater dependence on digital transactions is mostly to blame for the 80% increase in alleged digital fraud attempts worldwide between 2019 and 2022. With the increasing integration of digital platforms into our financial operations, fraudsters will probably have an exponential increase in opportunities.
The fight against elder fraud is still continuing, although financial institutions are getting better at spotting and stopping fraud. Awareness and vigilance are still crucial. We may contribute to preserving the financial security and independence of our elderly loved ones by identifying the warning signs of scams, putting protective legal and personal measures in place, and building a supportive community.
