Fighting senior fraud
Seniors should be vigilant against ever-more-savvy financial scams
Every year in the United States, millions of seniors are the victims of financial fraud and theft, collectively taking billions from them at a time when most are financially vulnerable. These are cruel and opportunistic attacks on Americans who deserve better.
May was Adult Abuse Prevention
Month in Virginia and June 15 marked World Elder Abuse Awareness Day, putting a spotlight on the threats posed to the health and well-being of older Virginians. Among these are financial crimes against these Americans.
But there is no bad occasion to call attention to this insidious threat and highlight practices that seniors — and all other Americans — should adopt to protect themselves from scammers and deter would-be thieves.
According to the Federal Bureau of Investigation, “more than 92,000 victims over the age of 60 reported losses of
$1.7 billion to the FBI’s Internet Crime Complaint Center” in 2021, marking a 74% increase over the previous year.
The FBI reported that information in May along with an extraordinary personal anecdote to illustrate the frequency of these crimes.
William Webster served as FBI director from 1978 to 1987 and led the Central
Intelligence Agency from 1987 to 1991. He was chair of the Homeland Security Advisory Council from 2005 to 2020.
Yet, despite having amassed so much knowledge of foreign and domestic threats, Webster and his wife were victims of a scam in 2014 in which criminals falsely claimed they were winners of a sweepstakes contest. They transferred $50,000 to the perpetrator in order to claim the prize.
“If it can happen to me, it can happen to you,” he warned in a public service announcement intended to remove the stigma of being a scam target and encouraging seniors to be vigilant.
Webster’s story is familiar: A person called him directly, made big promises of an extraordinary windfall and asked for a relatively small sum in order to claim it.
According to the FBI, the scammer didn’t know much about Webster’s background, although many thieves do considerable research beforehand, but instead targeted Webster because he “was older and might therefore be susceptible to cons that prey on traits like trustworthiness, loneliness and a yearning for more financial security.”
Seniors also tend to be more vulnerable to online scams, since they are less attuned to signs of phishing or fraud as technology evolves and criminals grow more savvy. (Those are factors likely to ensnare future generations, too, even those who spent their lives with computers and mobile devices.)
Not that all danger comes through the internet. The Federal Trade Commission says phone and mail scams remain lucrative for criminals, as are romance scams. Collectively, they account for $3 billion worth of fraud annually.
So how can seniors (and those who love them) bolster their defenses? The
Consumer Financial Protection Bureau suggests enlisting a trusted relative or friend to help with money matters, to consult your financial institutions about fraud prevention, and to plan for diminished financial literacy and illness.
AARP operates a toll-free fraud tip line (877-908-3360) to report potential scams and receive advice. The group’s website (aarp.org) maintains an updated list of approaches criminals might use and has a tool kit for seniors to protect themselves online.
Some useful tips include never revealing sensitive personal information (Social Security numbers, bank logins or passwords), keeping close watch on account activity and being especially vigilant after big life events, such as the death of a spouse or a move.
Virginians who believe they or a loved one is a victim of fraud should contact the State Corporation Commission’s Division of Securities and Retail Franchising at 1-800-552-7945 or SRF_General@scc. virginia.gov.
No system is foolproof. A scammer who finds a locked door will look for an open window — anything to get access to a quick payoff. Being aware of these threats, looking out for yourself and enlisting help reduces the chance of being a victim.