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The Growing Threat of Elder Fraud and How to Protect Against It

The Growing Threat of Elder Fraud and How to Protect Against It

Cybercrimes against the elderly are on the rise. Here are some of the most common scams and tips on protecting yourself.

Cyber fraud against the elderly is a rapidly growing problem. Criminals are increasingly targeting older adults due to their financial stability, trusting nature, and relative unfamiliarity with digital platforms. 

The FBI reported that in 2022, over 88,000 elderly victims suffered a collective $3.1 billion in losses, a 17% rise from the previous year. Scammers recognize that many seniors have accumulated wealth through pensions, retirement funds, or home equity, making them prime targets for theft. Indeed, data shows that US households where the head of family is between 65 and 74 have the highest median net worth of any age group ($409,900) as well as the highest average net worth ($1,794,600). Those where the head is older than 75 are still the third-wealthiest segment with $335,600 median net worth and $1,624,100 average.

In 2022, over 88,000 elderly victims suffered a collective $3.1 billion in losses, a 17% rise from the previous year.

Seniors are often particularly vulnerable because they may be isolated or lack regular interaction with tech-savvy individuals who could help spot scams. The aging population’s relative lack of familiarity with new technologies, online security, and evolving scam tactics leaves them exposed. Scammers use a wide variety of methods to exploit these vulnerabilities.

Common scams targeting the elderly

  1. Tech support scams: Fraudsters pose as tech support representatives from reputable companies, convincing victims that their computers are infected with malware. They often ask for remote access or payments to "fix" non-existent problems.
  2. Grandparent scams: In this emotional manipulation scam, criminals impersonate a victim’s grandchild or family member, claiming to be in trouble and in urgent need of money.
  3. Romance scams: Scammers create fake online relationships to gain the trust of elderly victims before asking for money under the pretense of medical emergencies, travel expenses, or other fabricated crises.
  4. Medicare & health insurance scams: Fraudsters pose as Medicare representatives to steal personal information or charge for fake services. Elderly individuals are often targeted as they frequently engage with medical services, making this scam particularly effective.
  5. Investment scams: Scammers lure elderly victims with too-good-to-be-true investment opportunities, including bogus real estate deals or fraudulent stock schemes, exploiting the desire for financial security in retirement.

How elderly people can protect themselves

Elderly individuals can take several steps to protect themselves from the growing threat of scams. Staying vigilant, utilizing cybersecurity tools, and being aware of common fraud tactics are essential for safeguarding against these schemes. Below are some actionable measures seniors can implement to reduce their risk of becoming victims of elder fraud:

  1. Be skeptical of unsolicited communications: Always question unsolicited calls, emails, or messages asking for personal information or payment. Contact trusted sources directly to verify suspicious requests.
  2. Use cybersecurity tools: Protect your devices with advanced cybersecurity solutions like Upfort Shield, which provides real-time protection against phishing, malware, and online fraud. Upfort Shield helps identify scams before they reach you, adding an essential layer of security for seniors.
  3. Sign up for personal liability insurance: Personal liability insurance can offer critical financial protection in the event of a scam. This coverage can help mitigate losses and cover legal expenses related to fraud cases.
  4. Stay educated and informed: Education is key. Seniors and their families should stay up-to-date on the latest scams and cybersecurity practices. This knowledge can empower seniors to recognize suspicious activities before they become victims. Keep up with the latest Threat Matrix, Upfort's monthly column outlining the latest digital threats and how small businesses and individuals can protect themselves.

By understanding the common tactics used by fraudsters and taking proactive steps, seniors can better protect themselves from falling prey to these growing threats. Utilizing tools like Upfort Shield and being vigilant about suspicious activities are essential in safeguarding both personal and financial well-being.

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