American senior citizens experienced a devastating spike in financial scams last year. The losses resulting from these criminal schemes rose to $3.4 billion, according to an FBI report released on Tuesday.
The report noted a 14 percent increase in fraud complaints from victims over the age of 60, making 2023 the worst year on record for elder fraud.
Criminals have created sophisticated enterprises that prey on unsuspecting elderly individuals. From investment schemes to tech support scams and even Christmas-themed schemes, these bad actors have found new and innovative methods of separating elderly citizens from their hard-earned money.
Reports of criminal schemes targeting seniors in the U.S. increased by 14% between 2022 and 2023, federal investigators said, warning that investment scams in which victims are enticed into transferring money to fraudulent financial institutions are the costliest to the elderly. In all, over 101,000 complaints of fraud perpetrated against individuals over 60 years of age were filed to federal law enforcement last year, the most of any age group throughout the country.
FBI officials said Tuesday the new numbers were “astonishing” and warned that as Americans witness one of the “greatest transfers of generational wealth,” the nation’s senior citizens are the most vulnerable.
There were 5,920 individuals over 60 who lost more than $100,000 as a result of criminal fraud and federal trends last year, demonstrating that seniors are increasingly being targeted and falling victim, the report said. In many cases, victims are coerced into authorizing payments to the criminal scammers, draining their bank accounts under false pretenses.
The Bureau’s 2023 “Elder Fraud Report” paints a stark picture of the financial vulnerabilities faced by senior citizens in America. James Barnicle, the head of the FBI’s Financial Crimes Section, emphasized the pernicious nature of these crimes, pointing out that once a scam transfer is made, the criminals are “hands off,” which means law enforcement must act with urgency to find the perpetrators and recover the funds – not an easy task by any stretch of the imagination.
Barnicle asserted that “financial institutions do need to do more, to take some level of fiduciary responsibility and help protect their customers from being victims – especially in the elderly victim space.”
There are several different types of scams criminals use to defraud their targets. At times, they will pose as government officials, law enforcement, or customer support representatives.
Barnicle said some of the scams originate from call centers in India, Western Africa, Laos and Cambodia. He said the FBI is not only looking to educate victims of scams, but actually hold people accountable.
“We’re looking to arrest people,” Barnicle said. “We’re going to work with law enforcement agencies around the world, in whatever jurisdiction has the best fit and can get hands-on in some countries. Maybe we can’t get hands on an offender, but maybe our partners can, whether it’s Australia or Japan or the United Kingdom — so we’re looking to arrest people.”
Tech support scams, in particular, are quite common, with perpetrators posing as support representatives from legitimate companies and falsely informing their prey of fraudulent activity or a potential refund for a subscription service.
The impact of these scams can be catastrophic. In many cases, elders are losing their life savings to scammers who prey on their lack of knowledge about technology and the internet. In at least one case, it resulted in a death in Ohio when an 81-year-old man killed a female Uber driver, believing she had scammed him. In reality, the real criminal had scammed both of the individuals.
The surge in elder fraud is a disconcerting development. The FBI aims to improve its strategies for stopping these crimes. But the best defense is knowledge. Those who have elderly relatives should educate their loved ones on how to spot these schemes so they can avoid being cheated out of their money. Preventing these criminals from successfully scamming people is the most effective way to ensure that there are fewer victims.