Elder Fraud and Financial Exploitation
Jul 27, 2022
The elderly are the fastest growing segment of our society and they are also an important part of our country's economy. America's growing older adult population is uniquely vulnerable to a broad range of exploitation and abuse. Financial crimes in particular are targeted at older adults with alarming frequency, and are all too often successful.
The Federal Bureau of Investigation (FBI) Common Fraud Schemes webpage provides tips on how you can protect you and your family from fraud.
Older adults especially should be aware of fraud schemes for the following reasons:
- Older citizens are most likely to have a “nest egg,” to own their home, and/or to have excellent credit—all of which make them attractive to con artists.
- People who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting. Con artists exploit these traits, knowing that it is difficult or impossible for these individuals to say “no” or just hang up the telephone.
- Older adults are less likely to report a fraud because they don’t know who to report it to, are too ashamed at having been scammed, or don’t know they have been scammed. Elderly victims may not report crimes, for example, because they are concerned that relatives may think the victims no longer have the mental capacity to take care of their own financial affairs.
- When an elderly victim does report the crime, they often make poor witnesses. Con artists know the effects of age on memory, and they are counting on elderly victims not being able to supply enough detailed information to investigators. In addition, the victims’ realization that they have been swindled may take weeks—or more likely, months—after contact with the fraudster. This extended time frame makes it even more difficult to remember details from the events.
- Older citizens are more interested in and susceptible to products promising increased cognitive function, virility, physical conditioning, anti-cancer properties, and so on. In a country where new cures and vaccinations for old diseases have given every American hope for a long and fruitful life, it is not so unbelievable that the con artists’ products can do what they claim.
- Money Smart for Older Adults Resource Guide - English
- Money Smart for Older Adults Resource Guide - Spanish
- Preventing Elder Financial Abuse
- NCUA Fraud Prevention Center
Additional Resources for older citizens from the United States Senate Special Committee on Aging.