The FBI’s Internet Crime Complaint Center (IC3) just released its annual publication on elder fraud, highlighting the growing number of seniors falling victim to scams. In 2023, complaints of elder fraud increased 14% with losses estimated at $3.4 billion, according to the report.

Financial fraud is one of the most egregious crimes, regardless of age. But for some reason, it seems even more shameless and abusive when it impacts our elders. One of the very first cases I investigated back in 1999 had a profound impact on my career.  It wasn’t because the fraudster deployed a devious new technique or was some criminal mastermind – it was because the victims were an elderly couple that had their identities stolen by a criminal who had been arrested over 100 times in the state of Connecticut alone.  

Aside from the fact that the defendant was doing “life in prison on the installment plan,” the victim’s emotional impact of this white collar crime resonated with me in a way I didn’t anticipate.  Their loss extended far beyond the monetary aspect, affecting their sense of security, independence, and quality of life. Being that I was a new Agent with little experience, I never contemplated the emotional impact that white collar crime can bring upon victims. 

Elder exploitation abuse has skyrocketed over the years as technology and communication evolved. Those who are less digitally native can be more susceptible to crimes than those who grew up with technology at their fingertips.  That’s not to say that our younger population is immune from cybercrime, far from it. My point is that the elderly population can be particularly vulnerable to devious methodologies and, because they typically have more money than younger generations, the losses can be devastating when they find everything they worked for over a lifetime gone in an instant.

Preventing Elder Fraud Starts with Empathy

Protecting our elderly population will require us, as a society, to focus on education and empathy if we want to stem the tide of generational wealth being pilfered from this country to fraudsters all over the globe. This starts with educating our vulnerable populations about the scams that are running wild and racking up billions in losses. The FBI report cited tech support scams as the most widely reported scam contributing to elder fraud, however, investment scams are the costliest with estimated losses exceeding $1.2 billion.

Solving for these type of scams starts with opening a dialogue to make sure our loved ones feel comfortable to reach out when they see something fishy online or are contacted by an organization that doesn’t typically contact people. Microsoft isn’t going to send a pop-up alert about a virus much like the IRS isn’t going to call anyone about a debt. And they aren’t going to request to be paid in gift cards. We know these things, but we clearly aren’t doing a good enough job educating those who need to hear it most.  

When you do talk to those who you think might be vulnerable to these scams, be empathic as sometimes their fears are not what you think.  Some victims I spoke to were reluctant to report a scam because they were afraid they would lose their financial independence from one of their children or simply the fear of embarrassment from judgmental loved ones.  Like almost anything in life, approaching a conversation with empathy goes a long way, but that alone doesn’t solve the problem.

Tips to Help Elders Steer Clear of Dodgy Dealings 

Along with education and conversation, develop a strategy to prevent them from being a victim in the first place.  For example, establish a code word that only you and your family know so when that call happens in the middle of the night, they know to ask the code word.  Code words aren’t new – Houdini and his wife had one with his wife “Rosabelle” followed by a decoded message that spelled out BELIEVE.  Personally, I like “Acapulco” for reasons only Secret Service Agents would understand.  The point is that with fraudsters moving toward deep fake technology, it’s important to have basic countermeasures in place.

Another option is to share passwords in a secure way.  I know that’s sacrilege to some, but obtaining your family members’ passwords to bank accounts, social media, email, and other communication channels might be the difference between life and death. One recommendation is to store the passwords in a book that is wrapped up in cellophane or something similar and store it in the back of the freezer.  That way they see that you aren’t snooping but it’s for a “break glass in case of emergency” situation.  As someone who, on more than one occasion, had to contact social media companies and web-based email providers during exigent circumstances in a law enforcement capacity, the customer service is not something I would want to rely on to save a family member’s life.  Always remember that you are the product for social media – not the customer.  The resources the big social media companies put into safety is quite frankly disgraceful.   Have a plan that doesn’t rely on them.  

In conclusion, here are some simple ways to help our elders steer clear of financial scams and dodgy dealings:

1.     Education and awareness: Make sure seniors and their caregivers are clued in on the signs of financial exploitation. It empowers them to spot trouble and speak up if something doesn't seem right. Community talks and workshops can be real eye-openers.

2.     Communication: A good chat within the family or support circle can make a world of difference. Elders should feel comfortable talking about money matters and knowing they can ask for advice if something fishy pops up.

3.     Double up on bank alerts: Set up alerts to go to the account owner and a trusted friend or family member. Each bank’s policy will be different so check with your financial institution on the best way to set this up.

4.     Limit the amount of online transfers: Establish a transaction limit for how much can be sent online. If a transaction exceeds that amount, require a signature be obtained in person at a branch.

5.    Wisely choose Power of Attorney: When picking someone to handle financial decisions, choose someone you can trust with your eyes closed.

6.     Follow the money: Check in on monthly bank statements and transactions regularly to keep things crystal clear. Keep an eagle eye on bank and credit card activity to catch any weird or suspicious transactions immediately. A little vigilance can go a long way.

7.     Loose lips sink ships: Stress the importance of not spilling the beans on personal info like Social Security numbers or banking details. It's best to keep that stuff under wraps and away from prying eyes.