The Rising Problem of Elder Fraud
Elder fraud is a growing issue in the United States, with significant financial losses reported among the senior population. In 2023, elder fraud cases reported to the FBI’s Internet Crime Complaint Center (IC3) increased by 14%, with over 101,000 victims aged 60 and older reporting incidents, resulting in a total loss of $3.4 billion. The average victim lost about $33,915. This type of fraud typically involves scams targeting older adults through various means, including tech support scams, investment fraud, and romance scams.
Tech support scams were the most reported, while investment scams were the costliest, accounting for more than $1.2 billion in losses. Scammers are increasingly using methods such as cryptocurrency, phone calls, and online platforms to defraud older adults, and they often target them due to their perceived vulnerability and financial resources.
Efforts to combat elder fraud are increasing, but it remains a major concern as many victims do not report these crimes, possibly due to shame or fear of losing their independence (source: Federal Bureau of Investigation and Comparitech).
Who Commits Elder Fraud?
Elder financial exploitation in the United States often involves both strangers and trusted individuals, but a significant portion of the abuse comes from family members, friends, or caregivers. Research indicates that 34% of elder financial abuse is committed by family members, while 51% is carried out by strangers. Strangers usually perpetrate scams such as phishing, lottery scams, or tech support fraud, while family members are more likely to misuse finances or assets over which they have control.
Financial abuse by trusted individuals appears to be more pervasive than “stranger scams,” with family members more often involved in misappropriating the elder’s money or property, sometimes under the guise of helping with finances. These cases can be harder to detect because the relationship often deters victims from reporting.
Elder financial exploitation is a serious issue, with annual losses exceeding $28 billion. Unfortunately, many cases go unreported due to fear of retaliation or dependence on the perpetrator (University of South Carolina – HSC News).
We at All Star Care Solutions are deeply concerned about the vulnerabilities faced by too many senior citizens, and we are determined to help protect our clients from any occurrence of these sorts of improprieties.
Key points to remember:
- Majority of scams are made by family: Studies have consistently shown that financial abuse is coming from family members, particularly adult children and spouses.
- How Trust is a factor: Older people often are vulnerable because of trusting family members with access to financial information, making exploitation easier.
- The Trend of Underreporting: So many cases of elder financial abuse are unreported and therefore not reflected completely in statistics, chiefly because the source of the abuse comes from a family member.