As I watched a recent episode of 60 Minutes that featured senior age folks being scammed, my heart sank. Not so much for the tremendous loss of money, the emotional strain, the shame and guilt or the financial mess they’ll have to clean up but for these two reasons below:
- Only one in 20 senior victims will report their scam to authorities.
- The chance of recouping any of their money is almost zero.
Statistically speaking, seniors over age 60 are a growing target for tech scammers. The FBI estimates that seniors lost more than $3 billion to financial scams in 2020 – an increase of nearly $1.5 billion from 2019. That is an alarming increase! As the world’s population continues to age, this number is only likely to rise since we’re living longer and the baby boomers represent a large portion of the equity/asset base. Those over age 80 are hit the hardest, suffering a median loss of $1,300 which is 105 percent higher than the nearest group, those age 70 to 80.
As I watched the interview, I was surprised to see the cross section of educational and professional backgrounds of the victims – very impressive credentials. That tells me anyone is at risk and the scammers are eerily skilled at what they do.
Why don’t more people report the crime?
Possible reasons include:
- Seniors may not be familiar with “how” to report it. Many of these scammers are part of international crime organizations, so who would you call – local police, state or federal offices? Which office? That is a lot of wasted time on the phone and for what? To tell them how dumb you feel and relive the embarrassment? No thanks!
- Shame! You have to be really vulnerable to admit you made a mistake of that magnitude. Victimhood crosses all boundaries so your race, education, and wealth don’t matter to a criminal. It happens to all walks of life and the humiliation is all the same.
- Fear of losing one’s financial independence. Once the kids or loved ones realize the mistake, they will surely think you have lost it and need supervision.
- Finally, what good is reporting the crime going to do? There is no way I’m going to get any of this money back so why waste more time and feel bad during the process.
Why is getting your money back so difficult?
- Many of the scammers are part of international crime rings across multiple countries. That makes it tough for the U.S. to find and prosecute scammers.
- Crimes across state lines and international borders makes jurisdiction difficult as a result.
- Again, many victims are hesitant to report the crime.
Then, four weeks after watching this report, it personally hit home. My parents were scammed by a fake government tech scam and lost $4,000. It sent my parents and siblings into chaos.
What can be done?
Individuals are still the first line of defense in helping to prevent seniors from being scammed. Here are five ways consumers can help:
- Regularly call or visit loved ones.
- Block solicitations on every level – direct mail, credit opportunities and robo calls.
- Provide respite for caregivers.
- Set up financial safeguards.
- Arrange for limited account oversight.
Look for the next edition of Senior Moment for a deeper dive on how to remain vigilant about protecting your privacy and not falling victim to scammers. In the meantime, if you or anyone you know has been a victim of a scam and would be willing to share your story with us, please reach out to info@haloseniorsolutions.com or call us at (833) 284-4256 (HALO) and share your story.
Halo Senior Move Solutions is a Senior Move Management company helping seniors and their families navigate the complexities of downsizing, selling the home, and moving later in life. Reach us at (833) 284-HALO (4256) or at info@haloseniorsolutions.com.
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Resources
- Identity Theft Protection. Senior scam statistics 2023. MARK GILL TECH JOURNALIST, VPN AND PRIVACY SPECIALIST UPDATED: October 7, 2022 in Senior Scam Statistics digital.
- 60 Minutes – Targeting Seniors Segment
- org – By Tobie Stanger. Last updated: June 15, 2019