In 2023, the FBI released a report highlighting a concerning trend: financial crimes targeting individuals aged 60 and above, commonly referred to as “elder fraud,” had seen a significant uptick compared to the previous year. The report revealed that losses attributed to elder fraud surged by 11%, totaling a staggering $3.4 billion, up from $3.1 billion in 2022.
Accompanying the rise in financial losses was a concerning uptick in complaints filed by elderly victims. In 2023, there were 101,068 complaints registered by individuals over the age of 60, reflecting a 14% increase from the previous year’s 88,262 complaints. The average dollar loss per victim amounted to $33,915, with a substantial number of individuals reporting losses exceeding $100,000.
Of particular concern is the prevalence of tech support fraud, which remained the most common type of financial crime impacting elderly complainants in both 2022 and 2023. Tech support scams typically involve perpetrators impersonating legitimate company representatives and deceiving victims into believing they require technical assistance or are eligible for refunds. These scams often entail downloading malicious software, granting scammers access to victims’ sensitive financial information.
Despite the alarming rise in elder fraud, investment scams continued to inflict the highest financial toll on elderly victims, resulting in losses exceeding $1.2 million in 2023. Tech support scams followed closely behind, accounting for losses exceeding $589,000.
James Barnicle, head of the FBI’s Financial Crimes Section, emphasized the importance of financial institutions assuming greater responsibility in safeguarding elderly customers from scams. He called for increased vigilance and proactive measures to prevent fraudulent activities, urging financial institutions to adopt a fiduciary role in protecting vulnerable customers.
Moreover, Barnicle stressed the significance of prompt reporting by victims to expedite recovery efforts by law enforcement agencies. He highlighted the FBI’s commitment to combating fraudulent schemes, including illegal call scams perpetrated by individuals posing as government officials or customer support representatives. These scams, which netted over $700 million in 2023, disproportionately targeted individuals above the age of 60.
Christopher Soyez, assistant section chief of the FBI Financial Crimes Section, underscored the escalating aggressiveness of scammers, citing instances of threats and intimidation directed at victims. Such tactics aim to coerce individuals into complying with fraudulent demands, highlighting the urgent need for enhanced awareness and protective measures to safeguard vulnerable populations from financial exploitation.
