How Scammers Steal from Older Adults

How Scammers Steal from Older Adults.

Financial Fraud Targeting Aging Parents Is Now Considered: Organized Crime.

On the 19th  September, the U.S. Senate’s Special Committee on Aging held a hearing focused on financial fraud targeting older adults. The session was called Fighting Fraud: How Scammers are Stealing from Older Adults.

Senator Braun, the ranking member, mentioned that Medicare fraud alone cost taxpayers $60 billion in 2023. The committee looked closely at the issue of financial abuse against seniors and discussed possible solutions. At AgingParents.com, we see how vulnerable older adults can be and often hear stories from clients about their aging parents being scammed.

We appreciate the Senate's attention to this issue. The hearing included testimony from several experts, including Kathy Stokes, who is the Director of Fraud Prevention Programs at the AARP Fraud Watch Network.

Her testimony shed light on how society often views fraud victims, usually blaming them for being "tricked." However, Ms. Stokes pointed out that AARP's research, which dates back many years, shows that the victim is not to blame. AARP revealed that scammers use a tactic called getting their targets "under the ether." They have long understood that creating a strong emotional response can override logical thinking—it's just how our brains function. When we feel threatened, we can't help but react automatically. This is exactly what scammers do; they make their targets believe that they or their loved ones are in danger.

The Scope of Criminal Networks

Ms. Stokes' testimony showed how extensive and organized these criminals are. They understand that older individuals often have more money due to years of work, savings, or home ownership. She described how international crime groups function. They have offices like businesses. They use imprisoned individuals to carry out scams. They obtain lists of potential victims and hacked information from banks, hotels, and other places, training the prisoners to manipulate targets into becoming victims using a specific strategy. AARP's research indicated that identity fraud alone cost Americans $43 billion in 2023.

Criminals are now using AI to enhance their scams.

In the past, you could spot a fake email from your bank by looking for spelling mistakes. If you received a call from someone claiming to be a family member but their voice was off, you would question it. Today, however, AI helps fraudsters craft flawless emails and texts that seem genuine. They also use AI to generate realistic fake images, videos, and websites, tricking people into thinking they are authentic.

Ms. Stokes said that AI is similar to the industrial revolution for fraudsters. It makes scams more difficult to detect. This highlights the need for us to stay alert and understand how these scams operate. It's crucial for anyone with an elderly family member to take the time to teach them about the warning signs.

Fraudster Tactics

Fraudsters often use tactics like the tech support scam. In this scam, a consumer receives a message claiming their computer has been hacked. The scammers trick them into giving access to their financial information, leading to stolen money. Another similar scam is the bank impostor scam, where someone contacts a bank customer, saying there’s a fraud issue with their account. This prompts the customer to share passwords and other sensitive information, resulting in immediate loss of funds. Many other scams exist as well. The hearing shared various resources to help the public become more aware and take protective measures.

Ways to Combat Fraud.

Everyone can take action, no matter their age. Scammers target all of us, not just older individuals.

1. Place a freeze on your credit with credit reporting agencies. You can lift the freeze whenever you need to.

2. Use a password manager and enable multifactor authentication for your online accounts.

3. Shred financial documents, bills, and any personal correspondence.

4. Keep your devices updated to guard against known security issues. Older systems on your computer or phone are easier for hackers to exploit.

5. Do not respond to messages from unknown senders.

6. Discuss the latest scams and tactics used by fraudsters. Help older family members understand that anyone can be approached in various ways by scammers.

Video: https://www.aging.senate.gov/hearings/fighting-fraud-how-scammers-are-stealing-from-older-adults