Summary:
Research conducted by the AARP in 2020 estimated that more than 40 million U.S. adults are caregiving for a family or friend aged 50 or older. Sadly, older populations are often targeted by fraudsters because they can be more trusting, have more financial savings, and are perceived to be less likely to report fraud crimes.
With Senior Fraud Awareness Day occurring in May, here is some important information caregivers can use to help protect older adults from becoming victims of senior fraud.
Types of Fraud Targeting Seniors
Identity scams and fraud happen across all age groups, but different types of attack methods are effective with different age groups.
The Federal Trade Commission examined fraud losses by age and fraud type. The top types of fraud where adults over the age of 60 reported losses were:
- Online shopping
- Business imposters
- Tech support scams
- Government imposters
- Romance scams
- Prizes, sweepstakes or lotteries
- Family or friend imposters
- Vacation and travel scam
According to the FTC, older adults were more likely than younger people to report financial losses to certain types of frauds, with three categories standing out:
- Older adults were 393% more likely to report losing money on a tech support scam
- Nearly three times more likely to report a loss on prize, sweepstakes or lottery scam
- More than twice as likely to report a financial loss due to a family or friend impersonator scam
Cyber Fraud on The Rise for Seniors
As the number of seniors online increases, so do the rates at which they experience cyber fraud. Unlike younger generations who are digital natives, older Americans are not always as cognizant of cybercrime and may lack the experience to identify threats.
Three common types of cyber fraud committed against seniors include:
- Phishing and vishing scams. Contacting victims by email (phishing) or phone (vishing), cybercriminals will create a sense of urgency — such as a fake emergency, government notice or prize winnings — that coaxes seniors into revealing personally identifiable information (PII) that can then be used to carry out fraud.
- Romance and impersonator scams. As seniors use the internet to connect with new people or past acquaintances, bad actors look for opportunities to deceive and defraud. Attackers may cultivate a sense of trust to persuade a victim to give up sensitive PII or provide them with money or gifts. The FTC reports that losses to romance scams totaled $547 million in 2021.
- Identity theft. Though identity theft affects people of all ages, seniors tend to be particularly susceptible to medical identity theft and Medicare fraud, IRS and Social Security fraud, estate identity theft and military identity theft.
How Caregivers Can Help Protect Seniors
Though completely preventing fraud is nearly impossible, caregivers can do a lot to help reduce the risk to the seniors in their lives. As an engaged and vigilant presence, caregivers can have a positive impact with a few simple steps:
- Initiate a conversation about scams and the common ways older consumers are targeted. Ask your loved one to contact you if they receive any phone calls or emails that just don’t seem right.
- Encourage seniors to get details in writing before making any financial transaction. Then, have them share that information with you or another trusted adviser before taking any action.
- If your loved one uses a computer, make sure their software and security systems are up to date. The patches distributed by software vendors often close known vulnerabilities that cybercriminals may try to exploit.
- Consider purchasing comprehensive identity protection for seniors in your life that includes credit monitoring, continuous dark web monitoring for exposed credentials, advanced fraud monitoring, smart alerts and top-rated resolution services.
Senior Fraud Resolution Is Now Part of Sontiq's Employer Benefits Packages
With so many people caring for senior family members, at Sontiq, we recently enhanced our identity security benefits packages to extend resolution services to include parents (in-law) and grandparents (in-law). Employers who offer Sontiq Intelligent Identity Security as part of a progressive employee benefits package can help reduce stress, enhance productivity and provide employees caring for loved ones with peace of mind.
In addition, if you discover that a senior family member has been a victim of an identity crime, you have the support of a Certified Identity Resolution Specialist. As a further added benefit, employees with a family plan receive expense reimbursement for restoring the identities of their senior family members.
If this isn’t yet available in your workplace, talk to your benefits manager about the value of identity security as an employee benefit.
