Elder fraud is a growing concern in the United States, with criminals increasingly targeting individuals over the age of 60. Increasingly, data brokers have been identified as a favored tool among criminals, providing access to personal information that criminals use to improve their scamming schemes.
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Economic loss through scams continues to increase each year
Using data from the FBI for the calendar year 2023, researchers have found that economic losses from scams continue to increase. In addition to financial loss rising over time, scam complaints have risen for the first time since 2020. Americans over the age of 60 lost over $3.4 billion to scams in 2023 alone. They reported more than 101,000 scams, representing a 14.5% increase compared to the 88,000 reports filed in 2022.
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The states in which scammers stole the most
Residents of Hawaii who were 60 or older lost the most money to scammers in all 50 states, with over 453 complaints filed and a total of 28 million dollars lost, meaning the average amount lost per scam was $61,000. While Hawaiians were impacted the most, this is due to the state’s smaller population size. When we look at a large-population state such as California, we see more than 11,000 complaints filed, equalling a financial loss of $643 million.
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Which types of scams occur the most?
Tech-support scams occurred the most in 2023. An example of these scams is those pesky phone calls you might receive telling you your iCloud account has been compromised. More than 17,000 tech-support scams were reported in 2023, which is also nearly the same number as reported in 2022. Behind tech-support scams were personal data breaches, which were reported 7,800 times in 2023.
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How do data brokers factor into scams?
Researchers found that elder abuse scams were made possible by personal data being available online. This happens largely thanks to data brokers, which are large companies that make money by selling personal information for the purpose of advertising.
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Additional tips to protect against elder fraud scams
As elder fraud continues to rise, it’s crucial for seniors and their families to be proactive in safeguarding personal information and recognizing potential scams. Here are some additional actionable strategies to help mitigate the risks.
1) Monitor financial accounts regularly: Set up alerts for any unusual activity on bank accounts and credit cards. Review statements monthly and consider using financial management apps that can help track spending and detect anomalies.
2) Use strong, unique passwords: Create complex passwords that combine letters, numbers, and symbols. Avoid using easily guessable information like birthdays.
3) Enable two-factor authentication: Two-factor authentication adds an extra layer of security by requiring a second form of verification.
4) Limit sharing personal information: Be cautious about the information you share online and over the phone. Scammers often use social media to gather details about potential victims. Adjust privacy settings on social media accounts to limit who can see your information.
5) Verify before trusting: Always verify the identity of anyone requesting personal or financial information. Use official contact numbers to confirm the legitimacy of the request.
6) Be skeptical of unsolicited calls, emails, or messages: Never click on links or download attachments from unknown or suspicious sources, as they may contain malware or phishing attempts.
7) Report suspicious activity: If you suspect a scam, report it to local authorities or organizations like the Federal Trade Commission (FTC). Early reporting can help prevent others from falling victim to the same scam.
8) Stay connected with family and friends: Regular communication with loved ones can help reduce feelings of isolation, which scammers often exploit. Encourage seniors to stay socially active through community groups, clubs, or regular family gatherings. Also, be sure to check out 5 ways tech can help you feel less alone.
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Kurt’s key takeaways
Data brokers and the entire system of selling personal information for advertising money have contributed to increased scams against all people in the last few decades. Elder Americans, specifically those aged 60 and over, tend to become victims more frequently due to a lack of tech savvy-ness and higher degrees of income. It’s important to be cautious when giving your personal information out online, and we recommend finding a service that can help you keep track of it and remove personal information from the internet.
Have you noticed an increase in scam attempts targeting you or elderly relatives recently? How have the tactics changed? Let us know in the comments below.
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