According to the FBI and reports from The Conversation, Americans aged 60 and older lost more than $3 billion to fraudsters during 2023.

But the consequences can be worse than just losing money. The experience is traumatic for many, with some victims feeling deep shame and self-doubt after the scam. This can interfere with their relationships, erode their trust in others, and damage their mental and physical health.

Teaching older Americans how to identify and avoid fraud, and how to report these crimes, could help mitigate the impact of this modern epidemic.

A recent FBI report shows the prevalence of elder fraud. In 2023, Americans over the age of 60 filed 14% more complaints with the FBI’s Internet Crime Complaint Center, or IC3, than in the previous year. Estimated financial losses increased by approximately 11% during the same period.

These numbers, although serious, represent only the tip of the iceberg. For one thing, only about half of the Internet crime reports to the FBI included information about the victim’s age, meaning that reported incidents of elder fraud are a lower count.

Furthermore, these figures do not include the many scams that occur over the phone, by mail or in person. And many fraud victims never report their experiences, often because they are ashamed, afraid or don’t know what to do.

While people of all ages fall victim to fraudsters, the elderly may be especially vulnerable.

The FBI has suggested that older people are often targeted because they tend to be more trusting and polite. They often have financial savings, own homes and good credit, which makes them more appealing to scammers.

Older adults may also feel less comfortable with new technologies, putting them at risk. Just think, someone who is 85 years old may have retired in 2004, three years before Apple introduced the iPhone. While many forms of technology have permeated our personal lives, it is often in the workplace where many people receive mandatory training, such as how to avoid online scams.

In 2023, tech support scams were the most commonly reported type of senior fraud. Other common schemes include romance scams, online shopping scams and investment frauds. Although technology scams are the most common, investment scams are the costliest, accounting for nearly half of all reported losses of those over 60 last year.

Fraudulent call centres are also known to target senior citizens. These scams accounted for 40% of reported elder fraud cases in 2023, according to the FBI, and accounted for at least $770 million in losses. Many use new technologies, such as artificial intelligence, to trick people more effectively with voice or video cloning scams.

Call-centre scammers tell all kinds of stories. In 2022, more than 600 people reported being victims of a single timeshare-related fraud. Collectively, they lost close to $40 million. And in the second half of 2023, fraudsters posing as government officials and technology support agents enticed victims to liquidate their assets or buy precious metals, with losses reaching in excess of $55 million.

As with any epidemic, infection control tools can help us limit the spread. Just as vaccines build immunity against viruses, prevention efforts can help people build their defences to avoid fraud. The main tool to prevent fraud is to learn how to identify potential scams in advance.

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