The Federal Bureau of Investigation (FBI) has officially released its annual Elder Fraud Report for last year. The report shows that financial fraud against older adults has consistently risen in the past several years, putting their finances and retirements at risk.
If you have an older loved one, you may be the only person who can help them if they’re being financially abused. Understanding why financial elder abuse is rising can help you spot potential problems and protect your loved one’s finances. Keep reading to learn what the FBI’s report highlights and how you can protect your family from financial abusers.
Concerning Trends in the FBI Federal Abuse Report 2021
The FBI has performed an annual report on fraud affecting seniors for years, focusing on fraud victims 60 and older. These reports are intended to inform the public about the risks of financial elder abuse by collecting reports provided to the FBI and other law enforcement agencies around the country. The trends they show over the past several years should concern anyone who has older loved ones.
The most critical statistic is simple: elder fraud has more than doubled between 2019 and 2021 and nearly quadrupled since 2017. That trend appears set to continue. Last year, reported losses reached almost $1.7 billion, compared to just $343 million in 2017. This only includes fraud that has been reported and verified, covering 92,371 American victims in 2021. Estimates for the actual total financial losses caused by these scams range from $2.9 to $36.5 billion.
The report also highlighted the most costly and common types of scams affecting older adults. For instance, confidence fraud typically caused the most significant losses, reaching more than $432 million last year. These scams include fake romances, where the victim believes they are in a genuine romance while the fraudster uses them as a source of income. Meanwhile, phony tech support scams affected 13,900 elderly victims, making up nearly 15% of all elder fraud reports.
Regardless of the scam used, elder fraud can be financially devastating. According to the report, the average victim loses $18,246. More than 3000 people lost $100,000 or more.
Why Older Adults Are Targets for Fraud
There are good reasons for the FBI’s focus on cons affecting older adults. People 60 and older are particularly tempting targets for scammers for various reasons. The average older adult is more likely to meet the following criteria and wind up on scammers’ radars:
- Significant resources: The elder fraud demographic consists of Baby Boomers and the Silent Generation, who benefited from some of the best economic years in the US when saving for retirement. These adults are much more likely to have significant resources saved up for retirement that scammers can attempt to steal.
- Poor technical literacy: A significant reason for the rising fraud rate is that scammers have many more opportunities to contact older adults. The internet has expanded communication, but many older people do not have the technical literacy to understand it. This allows fraudsters to quickly reach and mislead them about technical and financial topics.
- Reduced mental acuity: As people age, health concerns like dementia and Alzheimer’s Disease frequently develop. These issues can significantly affect decision-making skills, potentially leading older people to be more credulous and fall for common scammer tactics.
- Minimal support systems: Older people may struggle to maintain their support networks as their children move away and their mobility decreases. Without someone to talk to about their finances, they are more likely to fall for scams, especially those that give them a sense of community.
Protecting Your Loved Ones From Elder Abuse
While scams are harmful no matter how old you are, it can be particularly damaging to elderly people. A single con can undo decades of saving for retirement. If fraud isn’t discovered in time, it can even lead to significant debt burdens that affect your entire family.
That’s why it’s vital to watch for signs of elder fraud if you have a family member or loved one over the age of 60. Common signs include:
- Unusual financial activity: Many older adults have financial routines. If your family member starts making unexpected withdrawals or transferring money to different accounts, they may have fallen victim to a scam and be sending the fraudster funds.
- Unexplained changes to estate documents: Some scammers are willing to wait months or years for large sums of money. If your loved one changes their will, trust, or other estate documents out of the blue, they may be the victim of a romance scam.
- New and sudden financial “forgetfulness”: If your loved one starts forgetting to pay bills or struggling to make ends meet, they may be ashamed and trying to hide the fact that they are losing money to someone.
- Personality changes: Scams often use emotional appeals to target victims. If your loved one is suddenly particularly cheerful because of a new “online friend,” or if they start to isolate themselves from loved ones, they may be the victim of a scam.
The best way to spot if a family member is at risk of abuse is by talking to them regularly. You’ll be more aware of their daily habits and routines, allowing you to spot the above changes and check in to ensure everything is okay.
Expert Legal Representation for Elder Abuse Victims
Sometimes, you don’t spot scams until it’s too late. If you have a loved one who has fallen victim to elder fraud, you and they need expert legal assistance. At the Law Offices of Todd M. Friedman, P.C., our expert attorneys are available to assist you with your fraud claims. We have years of experience fighting on behalf of clients who have lost funds due to fraud. Schedule your consultation today to learn how we can assist you with your elder fraud claim.
