May 15th is National Senior Fraud Awareness Day
In an effort to promote public awareness, the FBI Internet Crime Center recently released their annual Elder Fraud Report to aggregate and highlight the data provided by the general public. The number of elderly victims has risen at an alarming rate, while the loss amounts are even more staggering. In 2021, over 92,000 victims over the age of 60 reported losses of $1.7 billion to the IC3. This represents a 74 percent increase in losses over losses reported in 2020.
This information is a companion report to the 2021 IC3 Annual Report released in March 2022. The quality of the data is a direct reflection of the information the public provides through the IC3 website, IC3.gov. The IC3 attempts to standardize the data by categorizing each complaint and analyzing the data to identify and forecast trends in internet crimes.
Elder fraud takes many forms as criminal elements seek to take advantage of this vulnerable and growing population. The FBI has prioritized our efforts to address elder fraud and will continue to do so with our partners.
Seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes.
- Seniors are often more polite and trusting,
- May have difficulty saying no,
- May be lonely or spend a great deal of time alone,
- May have diminished physical or mental capacity,
- Are less likely to report the crime out of shame,
- Are often financially stable and own their homes.
Criminals often focus their efforts on seniors to exploit these characteristics, at times using intimidation or threatening violence, and wreaking havoc on victims’ financial, psychological, and physical well-being.
The fraudsters buy and trade lead lists on the internet with senior citizens’ names, phone numbers, and other personal information to contact potential victims. The victims of these schemes often lose thousands of dollars or more apiece, which can cause significant harm to elderly victims’ and their caregivers’ daily survival.
An important step in avoiding being victimized is educating the population to be more aware of the numerous types of scams targeting the elderly.
According to the IC3 report, Tech Support Fraud is the most common frauds affecting victims over 60 years of age.
In 2021, the IC3 received 13,900 complaints related to Tech Support Fraud from elderly victims who experienced almost $238 million in losses. Elderly victims account for 58 percent of the total reports of tech support fraud to the IC3 and 68 percent of the total losses.
Tech support scammers continue to impersonate well-known tech companies, offering to fix non-existent technology issues or renewing fraudulent software or security subscriptions. However, in 2021, the IC3 observed an increase in complaints reporting the impersonation of customer support, which has taken on a variety of forms, such as financial and banking institutions, utility companies, or virtual currency exchanges.
Many victims report being directed to make wire transfers to overseas accounts, purchase large amounts of prepaid cards, or mail large amounts of cash via overnight or express services. For additional information on tech support scams, refer to IC3 Tech Support Fraud PSA, I-032818-PSA
Confidence Fraud/Romance Scams
Confidence Fraud/Romance scams encompass those designed to pull on a victim’s “heartstrings”. In 2021, the IC3 received reports from 7,658 victims who experienced over $432 million in losses to Confidence Fraud/Romance scams. This type of fraud accounts for the highest losses reported by Over 60 victims. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and confidence. The scammer uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. The criminals who carry out Romance scams are experts at what they do and will seem genuine, caring, and believable.
The scammer’s intention is to quickly establish a relationship, endear himself to the victim, gain trust, and eventually ask for money. Scam artists often say they are in the military, or a trades-based industry engaged in projects outside the U.S. That makes it easier to avoid meeting in person—and more plausible when they request money be sent overseas for a medical emergency or unexpected legal fee.
Grandparent Scams also fall into this category, where criminals impersonate a panicked loved one, usually a grandchild, nephew, or niece of an elderly person. The loved one claims to be in trouble and needs money immediately. In 2021, over 450 Over 60 victims reported Grandparent scams, with approximate losses of $6.5 million.
Con artists are present on most dating and social media sites. In 2021, the IC3 received thousands of complaints from victims of online relationships resulting in sextortion or investment scams.
- Sextortion occurs when someone threatens to distribute your private and sensitive material if their demands are not met. In 2021, the IC3 received over 2,100 sextortion-related complaints from victims over 60, with losses over $3 million. Please see the September 2021 IC3 PSA I-090221-PSA on Sextortion for more information.
- Many victims of Confidence Fraud/Romance scams also report being pressured into investment opportunities, especially utilizing cryptocurrency, called “pig butchering”. This scam is most often reported among younger populations. However, in 2021, 791 over 60 victims lost almost $123 million from this scam. Additional information on “pig butchering” can be found in the September 2021 IC3 PSA I-091621-PSA.
- An important step in avoiding being victimized is educating the population to be more aware of the numerous types of scams targeting the elderly.
- Some of these scams include:
- Technical and customer support.
- Money mules.
- Confidence fraud/romance scams.
- Telemarketing/mail fraud.
- Lottery/sweepstakes.
- Government impersonation.
- Real estate fraud: mortgage/reverse mortgage.
- Internet: phishing, malware, other online spoofs.
- Some of these scams include:
If you believe you are a victim of fraud or know a senior who may be—regardless of financial loss—immediately report the incident to the Cleveland FBI at 216-522-1400 or your local law enforcement agency, or to the Internet Crime Complaint Center at www.ic3.gov.
