By Jessica Hall
FBI says elder fraud losses spiked 84% to $3.1 billion
A growing amount of romance scams, fake call center customer support and crypto-investment schemes have been used to target and defraud older adults.
In fact, people over 60 years old lost $3.1 billion last year, an 84% surge from 2021, amid an increase in the amount and sophistication of such schemes, according to the Federal Bureau of Investigation’s Internet Crime Complaint Center, a central intake point for victims to report fraud.
More than 88,200 people over 60 years old were victims of fraud last year. The average loss was about $35,000 per victim, while 5,456 victims lost more than $100,000.
“Call centers overwhelmingly target the elderly, with devastating effects,” the FBI said. “Victims over 60 lost more to these scams than all other age groups combined, and reportedly remortgaged/foreclosed homes, emptied retirement accounts, and borrowed from family and friends to cover losses in these scams.”
Read: 6 things to know about retirement and growing older in America
Technology and customer support schemes continued to be the most common type of fraud reported, with 17,800 complaints filed last year by victims over 60. Typically, tech and customer support scammers take advantage of victims’ unfamiliarity with technology, online banking, and newer payment methods, like cryptocurrency, to quickly take as much money as possible, the FBI said.
The scams often start from call centers in South Asia, mainly India, according to the FBI. In response, the Justice Department and the FBI said they have collaborated with law enforcement in India, such as the Central Bureau of Investigation in New Delhi and local Indian states, to combat cyber-enabled financial crimes and call center fraud.
In 2022, with the assistance of U.S. law enforcement, Indian law enforcement made multiple call center raids, disruptions, seizures, and arrests of the individuals alleged to be involved in these financial crimes and global telemarketing frauds, the FBI said.
Read: The holidays are prime time for scammers–and seniors are their favorite targets
Older adults also filed nearly 8,000 complaints last year for nondelivery or nonpayment of items, making that the second most reported fraud among the elderly.
As more elderly people are joining social media outlets to connect with others, the combination of online shopping and social media creates easy venues for scammers to post false advertisements. Many victims report ordering items from links advertised on social media and either receiving nothing at all or receiving something completely unlike the advertised item, the FBI said.
Another scam that targets older adults is compromised business email accounts. These scams are carried out by fraudsters who compromise email accounts, phone numbers and virtual meeting applications to conduct unauthorized transfer of funds, the FBI said.
In 2022, the FBI received almost 10,000 complaints from victims over 60 involving the use of some type of cryptocurrency, such as Bitcoin, Ethereum, Litecoin, or Ripple. Losses of these victims totaled over $1 billion.
The FBI said the popularity of cryptocurrency has made it a preferred payment method for all types of scams–SIM swaps, tech/customer support fraud, employment schemes, romance scams, and even some auction fraud.
The FBI provided these tips for protection against elder fraud:
— Be cautious of unsolicited phone calls, mailings, and door-to-door service offers. Search online for the contact information and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams. Also, legitimate customer service, security, or tech support companies will not initiate unsolicited contact with individuals. They also won’t require payment via prepaid cards, wire transfers, cryptocurrency, or mailed cash.
— Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one. Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts for suspicious activity.
— Make sure all computer antivirus and security software and malware protections are up-to-date. Beware that pop-ups are regularly used by perpetrators to spread malicious software. Also, never give unknown, unverified persons remote access to devices or accounts. Be careful what you download. Never open an email attachment from someone you do not know and be wary of email attachments forwarded to you.
— Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.
— Government or law-enforcement officials will not demand payment by cryptocurrency, prepaid cards, wire transfers, or overnight mailed cash, nor contact a subject by phone to notify they are under investigation.
-Jessica Hall
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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04-21-23 1244ET
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