How fraudsters steal from the elderly

How fraudsters steal from the elderly.

Financial fraud targeting aging parents is now considered organized crime.

On September 19, the U.S. Senate Select Committee on Aging held a hearing focused on financial fraud targeting older adults. The session was titled Fighting Fraud: How Fraudsters Steal from Seniors.

Senator Braun, the ranking member, mentioned that Health insurance fraud alone cost taxpayers $60 billion in 2023. The committee closely examined the issue of elder financial exploitation and discussed possible solutions. At AgingParents.com, we see how vulnerable seniors can be and often hear customers tell stories of scams about their aging parents.

We appreciate the Senate’s attention to this issue. The hearing included testimony from several experts, including Kathy Stokes, director of fraud prevention programs at the AARP Fraud Watch Network.

Her testimony shed light on how society often views victims of fraud, usually blaming them for being “deceived.” However, Ms. Stokes emphasized that AARP’s research, which dates back several years, shows that the victim is not to blame. AARP Revealed 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 the way our brain works. 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 extent of criminal networks

Ms. Stokes’ testimony showed how numerous and organized these criminals are. They understand that older people often have more money due to years of working, saving or owning a home. She described how international criminal groups operate. They have offices like businesses. They use imprisoned individuals to commit fraud. They obtain lists of potential victims and pirate information from banks, hotels and other locations, training prisoners to manipulate targets into becoming victims using a specific strategy. AARP research indicated that identity fraud alone cost Americans $43 billion in 2023.

Criminals are now using AI to bolster their scams.

In the past, you could spot a fake email from your bank by searching spelling mistakes. If you received a call from someone claiming to be a family member but their voice was dead, you would question it. But today, AI helps fraudsters create impeccable emails and texts that feel authentic. They also use AI to generate fake realistic images, videos and websites, making people believe they are authentic.

Ms Stokes said AI is akin to the industrial revolution for fraudsters. This makes scams harder to detect. This highlights the need for us to remain vigilant and understand how these scams work. It is essential that anyone with an elderly family member take the time to explain the warning signs to them.

Tactics of fraudsters

Scammers often use tactics like tech support scam. In this scama consumer receives a message claiming that their computer has been hacked. Fraudsters trick them into giving access to their financial information, which allows them to steal money. Another similar scam is the bank imposter scam, where someone contacts a bank customer to tell them there is a fraud problem with their account. This tricks the client into sharing passwords and other sensitive information, resulting in immediate loss of funds. Many other scams also exist. The audience shared various resources to help the public be more aware and take protective measures.

Ways to fight fraud.

Everyone can act, regardless of age. Scammers target us all, not just the elderly.

1. Freeze your credit with the credit bureaus. You can lift the freeze whenever you need.

2. Use a password manager and enable multi-factor authentication for your online accounts.

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

4. Keep your devices up to date 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 different ways by scammers.

Hearing in plenary committee

Fight against fraud: How fraudsters steal from the elderly (hearing in plenary committee)

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