New FBI Warning: Guard Seniors Against Romance Scams and Elder Fraud

May 15

Imagine this! You have retired and your life is now filled with adventure, cherished moments, and newfound passions. However, lurking in the shadows of these years is an invisible threat that targets not just our wallets but also our hearts – officially known as online exploitation of those over 60, aka elder fraud

Let's prevent victimization and uncover the truths, protect ourselves AND our loved ones, and take charge of the joy that our we deserve in retirement years. More information is on Janexfbi.com, especially a blog post about named Smart Swipes: A No-Nonsense Guide to Safe Online Dating After 50.

Side bar: For official purposes and when discussing large demographics, online exploitation of older adults is called elder fraud by the government. This can be because government programs and social services use this age range to define eligibility, or because research studies categorize populations in this way.

So, for the purposes of this blog post, we'll be using "elder" in this broader sense to encompass the growing population of individuals over 60. While some may not necessarily feel like elders themselves, including me, they are a demographic that scammers unfortunately target.

It’s an important distinction to acknowledge, and throughout this post, we'll aim to strike a balance between respecting individual perspectives and addressing the realities of elder fraud.

This blog post delves into the alarming rise of elder fraud, including a focus on how romance scams exploit the vulnerabilities of older adults. Whether you're a senior yourself or have loved ones over 60, understanding these tactics and learning preventive measures can make a huge impact in minimizing losses to your (or your loved one’s) wallet and heart

Scammers Targeting Seniors

The Federal Bureau of Investigation Internet Crime Complaint Center (IC3) just-released its 2023 annual report on elder fraud. It highlights the significant impact of financial crimes targeting seniors aged 60 and above. The report shows that in 2023, these scams resulted in:

Losses totaling $3.4 billion
11% increase from the previous year
$34,000 average loss per victim

And remember this is a low estimate. Many crimes go unreported for a variety of reasons including embarrassment about being victimized and not knowing where to report. (Janexfbihere to help anyone report a scam of any dollar amount. Here is a post we published with information about reporting a crime, as well as a fillable template crime report template for you to use to gather and create a cohesive document that law enforcement will totally appreciate.

The rise in elder fraud is ALARMING.

Photo courtesy of ic3.gov

The FBI's report highlights several common scams targeting seniors. Here are the top 5 based on the most money lost by victims.

1. Investment Schemes: The Illusion of Financial Gain

Investment scams come in various forms, from fake promissory notes to cryptocurrency cons. Scammers prey on seniors' desire for financial stability and growth, resulting in losses exceeding $1.2 billion in 2023. These fraudulent schemes promise high returns but ultimately leave victims devastated and financially depleted.

2. Tech Support Scams: The Tricky Tech Trap

Have you ever received a call from someone claiming to be tech support, warning that you have issues with your computer? These scams, disguised as legitimate tech support, are among the most common schemes targeting seniors. In 2023, victims lost nearly $600 million to these deceptive tactics. Scammers trick victims into downloading malware under the guise of fixing non-existent problems, and can then gain access to sensitive information and financial accounts.

3. Business Email Compromise Scams: Presto! Money has disappeared.

Business Email Compromise (BEC) is a type of scam that targets businesses or individuals involved in financial transactions, especially those regularly conducting wire transfer payments or working with suppliers. These sophisticated scams involve fraudsters gaining unauthorized access to email accounts, phone numbers, or virtual meeting applications through social engineering or computer intrusion techniques. They use this access to deceive victims into transferring funds to unauthorized accounts. Often times the money is long gone from your bank account before you are even aware of it.

4. Romance Scams: Matters of the Heart and Wallet

Romance scams tug at the heartstrings of seniors, with scammers creating fake identities to gain trust and affection. In 2023, over thousands of seniors reported falling victim to these emotional scams, resulting in losses exceeding $357 million. Scammers often use online platforms to establish fake relationships, manipulate victims' emotions, and ultimately exploit them financially. In an NBC.com article on the topic, https://www.nbcnewyork.com/better-get-baquero/fbi-warns-of-romance-scams-to-watch-out-for-ahead-of-valentines-day/5130699/, FBI Supervisory Special Agent Steven Shapiro said, “Victims range in age from college students to a recent case involving an 87-year-old Holocaust survivor, who the FBI said lost $2.8 million in a romance scam.”

4a. The Grandparent Scam: Exploiting Trust and Emotion

We almost always add something about the grandparent scam in matters of the heart and seniors because my mother and so many others were victims of this heartless crime.

It’s a particularly distressing form of elder fraud. Scammers impersonate panicked relatives, often grandchildren, claiming to be in urgent need of money. In 2023, over 200 seniors reported falling victim to this heart-wrenching scam, resulting in losses totaling around $2.3 million. The use of AI-generated recordings adds another layer of deception to this scheme, making it even more difficult to detect.

5. Government Impersonation Scams: Beware of Call Center Scams

Phone scams targeting seniors often involve impersonating government officials or offering fake prizes and services. These scams cost older Americans nearly $770 million in 2023 alone, with scammers using intimidation or false promises to manipulate victims into providing personal and financial information. It's essential to be cautious of unsolicited calls and to verify the legitimacy of any requests.

Why Elder Fraud Scammers Target Seniors

Elder fraud scammers thrive by manipulating emotions and exploiting any possible vulnerabilities. Older adults are often targeted for several reasons:

Loneliness: Many seniors face loneliness, especially after the loss of a spouse or partner. Scammers exploit this desire for connection by posing as loving companions online.
Desire for Intimacy and Friendships: The natural human need for intimacy and companionship remains strong throughout life. Seniors searching for romantic connection online become easy prey for scammers who feign affection.
Technological Discomfort: Some older adults may not be as tech-savvy as younger generations. Scammers take advantage of this by using complex online platforms and manipulating less familiar interfaces.
Financial Independence: Many seniors have accumulated savings and financial security over their lifetimes. Scammers target this financial independence, devising elaborate schemes to trick them into parting with their hard-earned money.

How to Protect Yourself!

If you're an older adult navigating the world of online dating, here are some crucial tips to protect yourself:

Be Wary of Online Personas: Don't be fooled by flattering profiles or romantic declarations online. Research photos through reverse image searches to see if they appear elsewhere.
Take it Slow: Ask questions, research the heck out of the person or opportunity, and double-check with a friend or loved one whether or not your desired actions are logical. If someone seems sketchy, yell “next”!
Never Send Money Online: Never send money, wire transfers, cryptocurrency, or provide access to bank accounts to someone you haven't met in person. Please don’t be fooled by thinking you’re exempt from this type of scam because you don’t own cryptocurrency! WHY? Once you have fallen for a scammer, you are at the point in their scam in which you plan to send them funds. The scammers will talk you through every detail of how to obtain the specific cryptocurrency they want as well as how to transfer those funds to them. It’s easier than you can imagine! Remember! These transactions are a completely confidential way for bad guys to receive money. Untraceable. Even with computer forensics or a subpoena to the company.

Talk to Your Loved Ones: Involve your children, friends, or trusted family members in your decisions or if you are contacted by anyone who is asking you for anything of value – mostly your money or a relationship. Share your experiences and concerns openly.
Report Suspicious Activity: If you suspect a romance scam, report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov/ and the IC3 https://www.ic3.gov/Home/ComplaintChoice.
Protecting Your Loved Ones (For Family and Friends)

If you have older parents, relatives, or friends who use the internet, here's how you can help them:

Offer Support and Guidance: Help them set up online dating profiles and navigate online platforms. Encourage them to ask for help with anything that feels suspicious.
Encourage Healthy Skepticism: Teach them to be critical of online profiles and avoid sharing personal information like bank details or home addresses.
Respect Their Independence: While offering guidance, avoid being overbearing or controlling. Ultimately, the decision to be online and decisions rests with your loved one. We’ve seen many cases in which a parent won’t discuss an issue about an online interactions with their children for fear of being rebuked.
Stay Involved: Show interest in their online interactions without being intrusive. Ask questions and offer advice when appropriate.

Additional Resources for Seniors and Loved Ones

The internet can be a valuable tool for connection, but it's vital to prioritize safety. Here are some resources for seniors and their loved ones:

The National Council on Aging: This organization offers information and resources on elder abuse, including financial scams. (https://www.ncoa.org/)
AARP Fraud Watch Network: AARP provides resources and educational materials to help seniors avoid scams and protect themselves online. (https://www.aarp.org/money/scams-fraud/about-fraud-watch-network/)
Love is Respect: This organization offers information and resources about healthy relationships, which can be helpful when navigating online dating. (https://www.loveisrespect.org/)

Here's a call to action for all readers:

Spread the Word: Share information about elder fraud and romance scams with your friends, family, and community. Help raise awareness and empower others to protect themselves.
Support Senior Centers: Many senior centers offer technology workshops and courses to help older adults become more comfortable and secure online. Consider volunteering your time or donating resources to such programs.
Advocate for Change: Lobby for stricter regulations on online platforms to make it harder for scammers to operate.

By working together, we can create a world where online interactions offer seniors a safe and positive experience for connection and companionship. Remember, our over 60 years need to be filled with joy, not heartbreak. Let's work together to prevent elder fraud and protect ourselves and our loved ones.

Stay safe!

Disclaimer: This blog post refers to numerous websites and dating platforms. The opinions expressed in these third-party websites and dating platforms do not reflect the views, positions or policies of Janexfbi. Janexfbi does not endorse any group, company, or organization listed herein.

This blog post is for informational and educational purposes only. Janexfbi makes no promises or guarantees related to the implementation of this information. This post should not be taken as legal advice or used as a substitute for such. You should always speak to your own lawyer or professional advisor before implementing this information on your own. Thank you!