Cyber Elder Fraud Guide

THREAT ADVISORY REPORT

CYBER ELDER FRAUD | GUIDE Lara Radovanovic | Zahid Rahman | Waratchaya Luangphairin (June)

TABLE OF CONTENTS Table of Contents

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1. Cyber Elder Fraud

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2. Definition: Who Are Cyber Elders

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3. Common Fraud Types

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a. Methods Used by Scammers 4. Impacts

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a. Financial

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b. Psychological

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c. Social

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5. How to Detect It

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6. How to Avoid It

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7. Recommendations

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a. For Elders

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b. For Organizations Serving Elders

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c. For Families and Friends

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8. Where and How to Report a Cyber Elder Fraud a. What to Include when Reporting 9. Works Cited

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Cyber Elder Fraud Cyber elder fraud is a growing threat, exploiting the unfamiliarity and trust of older adults to steal money or personal information using digital means. The financial toll on victims is astronomical. The Federal Bureau of Investigation (FBI) reported a loss of over $3.4 billion to cyber related crimes in 2023 alone, a whopping 11% increase from the previous year [1].

Who Are Cyber Elders?

Cyber elders are typically defined as individuals aged 60 years and older who use technologies such as smartphones, email, and the internet. While many in this group are tech savvy, some may be less familiar with evolving online threats, making them more vulnerable to manipulation. The FBI notes that scammers often target this population because they may have accumulated savings, own property, and may be more trusting or isolated, therefore increasing the likelihood of engaging with scammers [1,2].

Common characteristics: Limited digital literacy: Lack of early exposure, training and support, and rapid technological changes may create knowledge gaps within older populations. This lack of recognition or understanding can in turn make them more vulnerable to deception [2].

Social Isolation: Seniors may live alone, or distant from family. Without regular interaction or oversight from trusted individuals, there is often no one present to recognize suspicious behavior and stop it before progressing [2,6].

Cognitive decline: Memory loss, and other issues can impair judgement and decisionmaking, making it easier to influence elders without realizing they’re being scammed [3].

Financial assets, and stability: Many seniors have larger financial resources than younger populations. Most are retirees with pensions, savings, or home equity, making them attractive targets for scammers [2].

Elders are generally more trusting: Studies show older people rely on first impressions of trustworthiness inferred from facial cues without including more long-term reliable information such as behavior in decision making, opening them up to scams [4].

Common Fraud Types Scammers often impersonate trusted figures and develop relationships over time to establish credibility. They may pose as tech support agents, government officials, or even relatives to lower the potential target’s guard and gain access to sensitive information [1,2,5].

Scammers pressure elders into acting quickly to avoid arrests, fines, or to “help” a loved one through scare and pressure tactics. This sense of urgency pushes elders into making quick decisions without verification [1,2,5].

Many scams begin via unsolicited phone calls and messages, phishing emails, fake websites, pop-up alerts that appear legitimate, and on social media platforms. These tools are used to harvest personal information or trick seniors into providing access or payments [2,5].

Scammers targeting elder citizens may employ one or more of the following types of schemes: Romance scam: Scammers pose as interested romantic partners to exploit emotional connections and establish trust, enhancing likelihood of compliance [2].

Tech support scam: Scammers pretend to be tech support to trick seniors into giving remote access to fix fake computer issues [2].

Grandparent scam: Scammers pretend to be a family relative in urgent need of money [2].

Government impersonation scam: Scammers impersonate government employees, and demand money by threatening arrest or legal trouble [2].

Sweepstakes/charity/lottery scams: Seniors are told they won a prize, which they can collect for a “fee” by scammers impersonating legitimate organizations [2].

Home repair scam: Scammers charge upfront for home repairs they never actually do [2].

TV/radio scam: Scammers use fake ads promoting real services like reverse mortgage or credit repair [2].

Family/caregiver scam: Trusted relatives or acquaintance financially exploits or otherwise steals from them [2].

Utility scam: Scammers claim power or water will be shut off unless immediate payment is made [5].

Delivery scam: Elders are asked to provide personal or payment info for a fake package delivery [5].

Gift card scam: Scammers influence seniors to buy gift cards and share the codes as a form of payment or to help a “friend” [5].

Impacts Financial Older adults targeted by cyber fraud suffer disproportionately large monetary losses compared to younger victims because they often have accumulated savings over many years and limited time to recover [6]. In 2023 alone, scams targeting individuals aged 60 and older caused over $3.4 billion in losses, a roughly 11% increase from the previous year [2]. According to the 2016 Health and Retirement Study, between 2.7 % and 6.6 % of older adults reported experiencing financial fraud in the past 12 months, and those who are defrauded tend to lose more money on average than younger victims [7]. Call-center–driven frauds (e.g., tech support and government impersonation) account for over $589 million in losses to victims over 60, illustrating how targeted operations can funnel large sums out of elder populations [8].

Psychological Beyond monetary harm, fraud victims often experience significant emotional consequences.

Many report feelings of anger, irritation, and embarrassment upon realizing they have been deceived, emotions that can lead to shame and self-blame [9]. Older adults who lose substantial funds may face increased risk of depression, post-traumatic stress disorder, generalized anxiety, and lowered overall well-being, potentially exacerbating existing cognitive or health challenges [6]. Studies also indicate that older victims frequently withdraw socially (either out of shame or fear of further exploitation) leading to feelings of isolation and reduced quality of life [10].

Social Cyber elder fraud often erodes trust within families and communities. Victims may become wary of close friends, distant relatives, or service providers, believing (sometimes incorrectly) that someone they know is complicit [6,11]. This loss of trust can strain familial relationships, as families struggle to address the stigma associated with financial exploitation [11].

Communities serving older adults also incur costs in providing counseling, legal assistance, and social services to support victims through recovery, diverting resources from other programs [11]. Moreover, when large-scale frauds come to light, they can undermine confidence in institutions (e.g., banks, telecommunication providers) perceived to be responsible for failing to protect vulnerable customers [1].

How to Detect It Scammers often follow predictable patterns. Being able to recognize these common red flags is the first step to stopping fraud before it happens. Watch out for the following signs: 1. Contacting you without notice and explanation of who they are, where they work, and why they need your help/information [12].

2. Rushing you to make a decision or act immediately when it comes to sharing personal information about yourself or accepting a deal [12].

3. Using generic greetings and vague contact information, be it generic information about you or generic information about them [12].

4. Offers that are too good to be true (get-rich-quick schemes) [12].

5. Sharing links that contain minor spelling differences. (Using numbers instead of letters, or vice versa) [12].

6. Poor Grammar or Spelling from ‘professionals’ who claim to be working for a legitimate organization, agency, or tech support [12].

7. Requesting suspicious payment methods (such as gift cards, Venmo, cash app, Zelle, wire money, or mail cash) [12].

8. Unexpected financial activity such as sums missing or unknown transactions 9. Requesting for personal or financial information via email or phone [12].

10. Evading questions that require official documentation from them to verify their identity [12].

How to Avoid It 1. Never share personal or financial info over the phone, email, or text.

2. Ask for documentation and question unusual requests [13].

3. Always verify with your legitimate institution if the contactor claims to be from that institution [13].

4. Watch for red flags like urgency, poor grammar, odd links or suspicious payment methods [13].

5. Be mindful of what you share online, even on social media.

6. Shred sensitive documents that contain your bank account info, personal info, etc [13].

7. Regularly review your bank account transactions and credit reports [13].

8. Educate yourself and your loved ones.

9. Report suspicious activity.

10. Don’t be afraid to seek advice and/or help!

Recommendations Everyone plays a distinct role in preventing elder cyber fraud. The following guidelines offer a clear path for each group to help protect and support older adults. a. For Elders 1. Scrutinize Calls and Emails: Treat unsolicited calls, texts, or emails with suspicion. If someone claims to be from a government agency or bank, hang up and verify separately using their official contact information [14,15].

2. Pause and Verify: If an unsolicited number has contacted you, do not rush to make deals or provide personal information. Carefully review who they are. Look up organizations they claim to be from, call official support lines, and use reputable websites. Scammers like to create a sense of urgency so that you act fast and inattentively.

3. Avoid Unusual Payments: Never wire money, buy gift cards, or send anything monetary to people you do not know or expect. Legitimate organizations will not contact you demanding payment to an unknown address.

4. Monitor Bank Accounts: Frequently and consistently by checking your credit card statements, transaction history, and bank account balance. If you see anything suspicious, place a credit freeze or fraud alert right away [15].

5. Set Up Trusted Contacts: Identify one or two points of contact (it can be a family or a friend) who can help you vet unusual requests before you act.

6. Stay Informed: Cybersecurity is always evolving, and so are cyber scams (e.g., government imposters, tech-support calls, or AI-generated voice scams). Stay up to date by constantly keeping informed and learning about these tactics from reliable sources.

7. Report Suspicious Activity: If you suspect a scam, report it. More information on reporting suspicious activity is provided in the next section called “Where and How to Report a Cyber Elder Fraud” [14].

b. For Organizations Serving Elders 1. Educate and Advocate: Offer and advertise workshops on common scams, warning signs, and web security that seniors can attend. Make it easy for them to seek guidance, advice, and information on this matter.

2. Provide Tech and Fraud Assistance: Offer help to secure their devices and configure privacy settings. Work with banks to set up fraud alerts and assist elders in clearing unauthorized charges.

3. Offer Cyber Fraud Targeted Support: Scams do happen even with prevention. Regardless of age, targets of cyber fraud may feel embarrassed and ashamed leading to not reporting and fraud continuing. Have a secure reporting system, assign a contact person, and connect seniors who may be subject to cyber fraud with legal or financial help. c. For Families and Friends 1. Keep Communication Open: Discuss suspicious calls, emails, or requests on a regular basis without passing judgment. Elderly people should be encouraged to report anything out of the ordinary so that potential fraud can be worked out together [15].

2. Strengthen Device Security: Enable security settings, implement ad blockers, install antivirus, and set up Multi-Factor Authentication when possible as well as teach them how to set up and use it [15].

3. Be a Trusted Point of Contact: Let the elderly be able to contact you to confirm unforeseen requests. Costly errors can be avoided with a second set of eyes [15].

4. Assist with Reporting and Recovery: If fraud takes place, assist with filing reports, offer emotional support, and help with documentation.

While each group can take meaningful steps to reduce the risk of cyber elder fraud, coordinated efforts weave a far stronger safety net-- one that not only helps prevent exploitation, but also supports recovery when fraud does occur.

Where and How to Report a Cyber Elder Fraud Early and comprehensive reporting maximizes the chance of recovering stolen funds and aids law enforcement in tracking down perpetrators. Below are the main channels through which elder fraud can be reported: 1. National Elder Fraud Hotline (DOJ/OVC) a. Website: ovc.ojp.gov b. Phone: 833-372-8311, Monday-Friday, 10 a.m.-6 p.m. ET c. Services: Provides a dedicated case manager who assists victims in reporting to federal, state, and local agencies; offers resources for emotional support and victim compensation. d. Languages: Services available in English, Spanish, and other languages upon request What to Include When Reporting Personal Information: Name, age, contact details, and any cognitive limitations.

Scammer Details: Name (if known), phone numbers, email addresses, mailing address, or any images/call recordings.

Financial Information: Dates, amounts transferred, account numbers, payment methods (wire transfer, gift cards, cryptocurrency), and any transaction receipts Communication Records: Copies of emails, text messages, scripts from voice calls, or screenshots of social media interactions.

Witnesses: Names and contact details of any family members, neighbors, or caregivers who might have observed suspicious activity.

Action Taken: Any steps already taken (contacting your bank, checking credit bureaus, placing fraud alert, freezing accounts).

Works Cited [1] FBI. (2024, April 30). Elder fraud, in focus. FBI. https://www.fbi.gov/news/stories/elder-fraud-in-focus [2] Elder fraud | Federal Bureau of Investigation. (n.d.). https://www.fbi.gov/how-we-can-helpyou/scams-and-safety/common-frauds-and-scams/elder-fraud [3] James, B. D., Boyle, P. A., & Bennett, D. A. (2014). Correlates of susceptibility to scams in older adults without dementia. Journal of elder abuse & neglect. https://pmc.ncbi.nlm.nih.gov/articles/PMC3916958/ [4] Horta, M., Shoenfelt, A., Lighthall, N. R., Perez, E., Frazier, I., Heemskerk, A., Lin, T., Wilson, R. C., & Ebner, N. C. (2024, January 2). Age-group differences in trust-related decision-making and learning.

Nature News. https://www.nature.com/articles/s41598-023-50500-x [5] J.P. Morgan. (2024, October 14). Help elderly & vulnerable family avoid scams: J.P. Morgan. Help Elderly & Vulnerable Family Avoid Scams | J.P. Morgan. https://www.jpmorgan.com/insights/fraud/fraud-mitigation/helping-your-elderly-and-vulnerable-lovedones-avoid-the-scammers [6] The conversation: Are older adults more vulnerable to scams?. The Conversation: Are older adults more vulnerable to scams? News | University of Florida. (n.d.). https://news.ufl.edu/2024/06/olderadults-vulnerable-to-scams/ [7] Rachel E. Morgan, Susannah N. Tapp, (n.d.). Examining financial fraud against older adults. National Institute of Justice. https://nij.ojp.gov/topics/articles/examining-financial-fraud-against-older-adults [8] IC3 FBI. (2024). 2023 ELDER FRAUD REPORT. https://www.ic3.gov/AnnualReport/Reports/2023_IC3ElderFraudReport.pdf [9] Kemp, S., & Erades Pérez, N. (2023, April 5). Consumer fraud against older adults in digital society: Examining victimization and its impact. International journal of environmental research and public health. https://pmc.ncbi.nlm.nih.gov/articles/PMC10094555 [10] Ebner, N. C., Pehlivanoglu, D., & Shoenfelt, A. (2023). Financial fraud and deception in aging.

Advances in geriatric medicine and research. https://pmc.ncbi.nlm.nih.gov/articles/PMC10662792/ [11] Your guide to cds, money market and ira accounts. Valley.com. (n.d.). https://www.valley.com/personal/insights/security-and-fraud/elder-fraud-the-hidden-link-betweenfinancial-fraud-and-elder-abuse [12] Warning signs of elder financial abuse. (n.d.). https://dfi.wa.gov/financialeducation/information/warning-signs-elder-financialabuse#:~:text=Unpaid%20bills.,on%20checks%2C%20or%20outright%20forgery [13] A guide to safeguarding seniors from Cyber Threats. (n.d.-a). https://www.americanbar.org/groups/senior_lawyers/resources/voice-of-experience/2024-april/aguide-to-safeguarding-seniors-from-cyber-threats/ [14] 4 ways you can avoid falling victim to a payment scam. How Can Seniors Avoid Payment Scams? (n.d.). https://www.ncoa.org/article/how-to-avoid-an-online-scam/ [15] Protecting older adults from fraud and financial exploitation. Consumer Financial Protection Bureau. (n.d.). https://www.consumerfinance.gov/consumer-tools/educator-tools/resources-for-olderadults/protecting-against-fraud/ [16] Jasinski, A. (2024, October 4). Rossen reports: What happens when you report fraud to the FTC; how to get money back. KETV. https://www.ketv.com/article/reporting-fraud-ftc-impact/62513283