Tricks of the digital age…the elderly are in the crosshairs of scammers

The elderly, who often find themselves in direct confrontation with new technologies that they are not familiar with, have become an easy target for fraudsters who exploit their weak digital experience and their quest to integrate into a fast-paced world.

According to a report by the American network “CNBC”, viewed by the “Eqtisad Sky News Arabia” website, consumer losses amounted to – in US– The result of fraud is $10 billion in the year 2023, which is a new record according to the Federal Trade Commission.

The committee indicated that this number is one billion dollars more than the fraud losses recorded in 2022, despite the number of reports remaining stable at about 2.6 million reports.

It quoted John Breaux, vice president of public policy, communications, and anti-fraud at the National Consumers League, a group that advocates for consumer rights, as saying: “Fraudsters have become more sophisticated, as their methods and technological tools have improved, allowing them to target victims with increasing precision.”

Elderly losses due to fraud

• Losses for individuals aged 60 or older amounted to $1.9 billion last year, compared to $1.6 billion in 2022, according to the committee.
• The committee suggested that the actual losses for the elderly would be much higher, reaching about $62 billion in 2023, due to the failure to report many cases.
• This is often because victims feel embarrassed or believe there is no point in reporting, according to a 2023 Gallup poll.
• Seniors were 60 percent more likely than younger people to suffer losses of more than $100,000 last year.
• These huge losses often occurred through scams such as false romance, investment fraud, and identity theft.

Repeated patterns of fraud

Fraudsters often impersonate relatives, representatives of major technology companies such as Microsoft, or financial and governmental institutions such as the Social Security Administration.

The Federal Bureau of Investigation (FBI) also reported a significant increase in cybercrimes targeting the elderly, noting that the average loss of one victim in this category exceeded $34,000 in 2023.

Investment fraud, especially related to fake cryptocurrencies, was the largest loss in 2023, reaching $538 million, an increase of 34 percent from 2022.

Three common warning signs of fraud

Breaux said there are three common tactics used by scammers that can help individuals protect themselves:

1. Emotional urgency: Scammers seek to create an “emotional emergency” that prompts victims to make quick decisions without thinking. They may claim that the offer is for a limited time, that the product is running out, or that immediate payment is required to avoid negative consequences.
2. Social isolation: Scammers try to prevent victims from consulting third parties. They might say: “Don’t tell anyone, this is a secret investment.” Experts advise seeking the opinion of a friend or relative before taking any step.
3. Unusual payment methods: Scammers often request payment via gift cards, bank transfers, Bitcoin ATMs, or various apps.

Such methods lack the possibility of refunding money, so it is recommended to use credit cards that provide consumer protection.

Awareness programmes

For her part, financial markets expert, Hanan Ramses, confirmed in exclusive statements to the “Eqtisad Sky News Arabia” website that:

• The elderly represent a sensitive segment that needs more care and awareness regarding managing their bank accounts and protecting their personal data.
• Banks must make an additional effort to educate the elderly in particular through targeted campaigns that explain the importance of confidentiality of information and the necessity of not sharing it with others.
• It is necessary to expand the provision of simplified explanation programs to them on how to use their banking services safely.
• Some elderly people often face problems related to forgetfulness, such as forgetting the PIN number for bank cards or the location of automated teller machines (ATMs). Therefore, it is necessary to have a trusted family member to help them manage their financial affairs, stressing the importance of choosing this person carefully to ensure that accounts are protected from risks.

Ramses also warned that the elderly are the group most vulnerable to fraud around the world, especially with the decline in the mental capabilities of some of them. Therefore, the family should be fully aware of the risks of people around the elderly, such as home workers or nurses.

The financial markets expert suggested that elderly people be dealt with in a way that suits their needs and abilities, such as writing down basic information for them on paper for easy reference instead of relying completely on technology, which may be difficult for them to use. It also demanded that banks follow a policy of notifying the customer immediately upon the occurrence of any unusual movements in the accounts.

She pointed out that the responsibility to protect the elderly from financial risks is a shared responsibility between banks and families, and includes all financial transactions, including trading on the stock market and investment contracts. She stressed the need to adopt comprehensive strategies to ensure the safety and integrity of their financial transactions.

Preventive measures

In turn, the economic expert, Yassin Ahmed, said in special statements to the “Eqtisad Sky News Arabia” website that with the development of fraudulent methods and fraudsters targeting the most vulnerable groups, such as the elderly, it has become necessary to take preventive measures to avoid falling victim to these attempts.

He added: There are a number of tips that can be directed to the elderly in particular, as follows:

• You should be very careful when dealing with calls or messages requesting details such as ID numbers or bank accounts, especially from unknown parties.
• Any offer that seems very tempting or promises quick profits is often an attempt to scam. The source of these offers must always be verified through official bodies or trusted persons.
• Beware of suspicious links and calls: Don’t click on links in unexpected messages, and don’t give out any information over the phone unless you’re sure of the caller’s identity.
• Use strong and secure passwords, and ensure that the sites you access are protected.
• It is important for seniors to consult a family member or trusted person when receiving suspicious offers or requests, especially related to money.
• If a person is exposed to any fraud attempt, he must contact the relevant authorities immediately. Reporting helps protect society as a whole from these threats.

He added: “Caution and awareness are the first line of defence. Understanding how scammers work and staying informed of their latest methods can prevent individuals from becoming victims. I stress the importance of not rushing to make any financial decisions without consulting or verifying the source of the request.”

He concluded his speech by saying: “Financial security for the elderly is not only their responsibility, but also the responsibility of society as a whole, through enhancing awareness and reporting any suspicious behavior.”