FBI Raises Alarm on Rising Elder Fraud Rates, Reports 84% Surge in Losses

The FBI has sounded the alarm on the surge in elder fraud rates, reporting a staggering 84% increase in losses compared to the previous year.

The Internet Crime Complaint Center's (IC3) 2022 Elder Fraud Report highlights the distressing trend, with a significant portion of the losses attributed to cryptocurrency investment fraud.

Elder Frauds on the Rise

Recognizing the vulnerability of seniors, the FBI's Springfield office is implementing measures to provide education to seniors and their families regarding internet crime. The primary objective is to enhance awareness and mitigate the risk of further victimization.

Elderly individuals often find themselves as prime targets for financial fraud schemes, leaving them susceptible to devastating losses. In some cases, victims have seen their life savings wiped out, leaving them and their caregivers in dire financial straits.

Based on the report findings, over 88,000 individuals aged 60 and above disclosed losses amounting to $3.1 billion.

Investment fraud emerged as the leading cause of victim loss, closely followed by technical-support fraud, where perpetrators manipulate victims into granting remote access to their computers by posing as technical assistants.

Business Email Compromise, involving scammers sending deceptive emails impersonating trusted entities, ranked third on the list.

In the state rankings, Illinois residents alone reported losses surpassing $75 million, solidifying the state's position among the top 10 states with the highest elder fraud losses.

Special Agent in Charge David Nanz of the FBI Springfield Field Office emphasized the gravity of crimes targeting the elderly, acknowledging the vulnerability of these individuals and their significance in society.

Nanz stated, "When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at our disposal. But in addition to our investigative efforts, the FBI is dedicated to stopping the exploitation of our seniors through community outreach and education."

How to Prevent Frauds

To avoid schemes such as elder fraud, here are 10 tips that the FBI suggested:

1. Shred financial documents.

2. Disconnect from the internet if you see suspicious pop-ups.

3. Be wary of unsolicited calls, mail, and door-to-door offers.

4. Don't share personal info unless you initiate contact.

5. Keep computer security software up to date.

6. Discuss investments with trusted advisors.

7. Get plans and purchases in writing.

8. Avoid upfront payments for services.

9. Don't pay with gift cards or cryptocurrency.

10. Take time to decide. Avoid rushing or keeping secrets.

Victims of fraud or individuals aware of potential elder fraud, regardless of financial loss and in the absence of imminent threat, are encouraged to report the incident to the FBI's ic3.gov.

The Department of Justice offers an Elder Fraud Hotline (833-FRAUD-11 or 833-372-8311) to provide resources and assist in filing complaints with the IC3. Victims can also reach out to the FBI Springfield office at 217-522-9675 or submit tips online.