Elder fraud is on the rise, with scammers using tactics such as crypto and speedy money transfers to make it harder to recover stolen funds. One woman, Carol, fell victim to a scam involving an international inheritance case, where she was asked to front money for legal fees and act as an intermediary for a friend’s estate. Despite the convincing documents provided by the scammer, an attorney in England confirmed the documents were fake, leading Carol to realize she had been targeted in a classic pigeon drop scam.
Online scams targeting older individuals have caused more than $3.4 billion in losses in 2023, with the average loss reported being $33,915. Older individuals are particularly vulnerable to tech support scams, investment scams involving cryptocurrency or real estate, and schemes involving quick money transfers such as Zelle. The speed at which funds can be moved out of the country or into crypto makes it challenging to recover stolen funds, with only $32 million recovered by the IC3’s asset recovery team in 2023.
To protect themselves from online financial fraud, individuals should be cautious of promises of high returns, requests to keep secrets, pressure to act quickly, and requests to wire money or buy gift cards. They should also be wary of phone calls or texts from official-sounding numbers and requests to help someone they’ve never met in person. If someone suspects they’ve fallen victim to a scam, they should stop communicating with the scammer, change passwords, monitor accounts for suspicious activity, and report the fraud to authorities immediately to help protect others from becoming victims.
Having a “trusted contact” designated with financial institutions can serve as an additional layer of protection for older individuals, as they can be contacted if suspicious activity is detected in an account. Financial firms such as Fidelity Investments and The Vanguard Group also offer the option for another customer to have “view only” access to an individual’s account. It is important to be cautious when giving power of attorney to someone over financial accounts, as family financial exploitation of elders is a significant issue.
By raising awareness of the warning signs of online financial fraud and taking proactive steps to protect assets, older individuals can reduce their risk of falling victim to scams. With the prevalence of scams involving crypto and speedy money transfers, it is essential to stay informed and vigilant in order to safeguard personal finances and assets from fraudulent schemes.
