Real Life Elder Fraud: The Warnings Signs & Where to Report

I was encouraged to see that after a year of advocating on behalf of one of our clients who was a victim of elder fraud, the DOJ/FBI took action to arrest the alleged fraudster(s) two weeks ago.

While it’s definitely good news that this individual has been exposed , it raises alarm bells: our client was one of sixteen victims identified in the long-running scheme. U.S. Attorney Damian Williams noted, “As alleged, Rosanna Lisa Stanley and Gina Guy callously defrauded elderly victims who were simply looking for companionship.? They allegedly used the millions of dollars in fraud proceeds to lead lives of luxury at their victims’ expense.? As today’s arrests demonstrate, perpetrators of romance scams will be held to account for their crimes.”

Elder fraud and romance scams are widespread, costly and devastating to victims. The FBI notes in its IC3 2023 Elder Fraud Report , “Scams targeting individuals aged 60 and older caused over $3.4 billion in losses in 2023—an increase of approximately 11% from the year prior. The average victim of elder fraud lost $33,915 due to these crimes in 2023.” What’s more, while romance scams are typically less prevalent than business or government impersonation scams, the FTC reports that “reported losses to romance scams total $1.14 billion, with median losses per person of $2,000 – the highest reported losses for any form of imposter scam.”

And that’s only the crimes that have been reported. We know that elder fraud and romance scams are often unreported for a variety of reasons: embarrassment, lack of awareness, hopelessness, loneliness. There’s also the simple fact that when reported, the information does not always include a victim’s age.

What can be done to prevent such scams? It begins with knowing the warning sides, and where to go if you believe you or your loved one may be the victim of a scam.

What to Watch Out For

• Scammers tend to create a sense of urgency/fear, or the scenarios may represent an opportunity that is too good to be true. Resist the urge to react and contact the local police if you feel there is a danger to you or a loved one.
• Scrutinize unexpected calls, mail, email or even door knocking visitors that are offering services.
• Never provide any personal information (such as full name, birth date, address, names of loved ones), or money, jewelry, gifts or banking information to people or organizations you have not verified or that you do not know.
• Make sure to properly vet individuals who you allow into your home such as home attendants or care givers, or individuals representing themselves as inspectors or utility workers, etc. indicating they need to check the gas line or offer some other “urgent” reason they need to enter your home.? ??
• Ensure you or your loved one has the right anti-virus software and firewall services installed. Also, be extra vigilant if you receive an email or telephone call from an individual warning that your anti-virus is about to expire and if you don’t act immediately, your computer could be vulnerable. If you believe a device has been compromised, shut it down and disconnect it immediately.
• Do not click on links or email attachments in unsolicited or unexpected communications, even from people you know. Always confirm through a separate communication channel, such as a phone call, that a message was sent to you by the individual claiming to have sent it.
• Consider leveraging tools for financial monitoring or power of attorney, as well as technical resources such as automatically forwarding unknown numbers to voicemail.
• Individuals on the phone representing themselves as law enforcement, part of a government agency such as the Social Security Administration, or IRS warning that you or a loved one have a situation which needs to be resolved immediately or you or a loved one faces potential arrest for a violation you did not know existed.

The FBI offers additional tips , and the National Council on Aging also provides resources on scams . For caretakers and loved ones, having an open, understanding dialogue on the possible scams targeting individuals of all age groups can help provide invaluable information on how to avoid scams but also, encourage a more comfortable setting for reporting if something does go amiss. Appraoching conversations with empathy instead of blame can often be the difference between knowing if something has occurred or finding out once the damage is irreparable.?

Seek Help Through Reporting Channels

No matter the size of the loss, it is critical to report it to authorities. Scammers often simultaneously target multiple individuals, and by reporting a crime, we are one step closer to stopping them from taking advantage of the next person and bringing the scammer to justice.

The FBI’s IC3 portal allows for reporting of any kind of internet crime, including elder fraud. Individuals are also encouraged to reach out to a local FBI field office for reporting and resources. You can also report frauds and scams to the FTC . Organizations for seniors and retirees, such as AARP , have hotlines offering resources as well. If you believe you or a loved one has been targeted to be scammed, always contact the local police for assistance. Rapid reporting and identification of the fraud greatly helps to minimize the potential loss and can even assist law enforcement in identifying and even apprehending those responsible.

?Although awareness around elder fraud is rising, there is still much to be done to prevent these scams from wreaking havoc on individuals and their loved ones. By understanding the tactics and signs of scams, and reporting scammers to the appropriate authorities, we can get one step closer to putting an end to these frauds and their devastating effects on the victims and their families.?