Elder Fraud

05/24/2022

Elder Fraud

Each year, millions of elderly Americans fall victim to some type of financial fraud or confidence scheme, including romance, lottery, and sweepstakes scams, to name a few. Criminals will gain their targets' trust and may communicate with them directly via computer, phone, and the mail; or indirectly through the TV and radio. Once successful, scammers are likely to keep a scheme going because of the prospect of significant financial gain.

Seniors are often targeted because they tend to be trusting and polite. They also usually have financial savings, own a home, and have good credit-all of which make them attractive to scammers.

Additionally, seniors may be less inclined to report fraud because they don't know how, or they may be too ashamed at having been scammed. They might also be concerned that their relatives will lose confidence in their abilities to manage their own financial affairs. And when an elderly victim does report a crime, they may be unable to supply detailed information to investigators.

With the elderly population growing and seniors racking up more than $3 billion in losses annually, elder fraud is likely to be a growing problem.

Common Elder Fraud Schemes

Romance scam: Criminals pose as interested romantic partners on social media or dating websites to capitalize on their elderly victims' desire to find companions.
Tech support scam: Criminals pose as technology support representatives and offer to fix non-existent computer issues. The scammers gain remote access to victims' devices and sensitive information.
Grandparent scam: Criminals pose as a relative-usually a child or grandchild-claiming to be in immediate financial need.
Government impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to provide funds or other payments.
Sweepstakes/charity/lottery scam: Criminals claim to work for legitimate charitable organizations to gain victims' trust. Or they claim their targets have won a foreign lottery or sweepstake, which they can collect for a "fee."
Home repair scam: Criminals appear in person and charge homeowners in advance for home improvement services that they never provide.
TV/radio scam: Criminals target potential victims using illegitimate advertisements about legitimate services, such as reverse mortgages or credit repair.
Family/caregiver scam: Relatives or acquaintances of the elderly victims take advantage of them or otherwise get their money.

Protect Yourself

Recognize scam attempts and end all communication with the perpetrator.
Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.

How to Report

If you believe you or someone you know may have been a victim of elder fraud, contact your local FBI field office or submit a tip online. You can also file a complaint with the FBI's Internet Crime Complaint Center.

When reporting a scam-regardless of dollar amount-include as many of the following details as possible:

Names of the scammer and/or company
Dates of contact
Methods of communication
Phone numbers, email addresses, mailing addresses, and websites used by the perpetrator
Methods of payment
Where you sent funds, including wire transfers and prepaid cards (provide financial institution names, account names, and account numbers)
Descriptions of your interactions with the scammer and the instructions you were given

You are also encouraged to keep original documentation, emails, faxes, and logs of all communications.

Resources

Former FBI Director Airs Warning About Elder Fraud

Public Service Announcement Reminds Seniors and Their Loved Ones to Be Vigilant

"If it can happen to me, it can happen to you," warns former FBI and CIA Director William Webster in a video message that urges older people and their loved ones to be wary of elder fraud schemes.

The 98-year-old retired judge and his wife Lynda were prospective marks in a Jamaican lottery scam in 2014 when an unsolicited caller informed Webster he won a sweepstakes. To collect his winnings-a car and millions of dollars-Webster was told he needed to pay $50,000. When the couple declined repeatedly, the caller became abusive and threatening. The Websters called the FBI and later worked with special agents in the Washington Field Office to nab the scammer, who is now serving time in prison.

The Websters are among millions of older Americans targeted each year in elder fraud schemes like bogus lottery and romance scams. Fraudsters string along victims with promises of love or riches in exchange for cash advances or assistance moving illegal funds. Losses from these types of scams reach into the hundreds of millions each year and are increasing as the U.S. population ages.

The Websters' case was featured on fbi.gov in 2019 and garnered national attention. The couple hopes the new public service announcement (PSA) will remind older people, their families, and caregivers that they need to maintain their guard against sophisticated schemes.

"Since we have become involved with this issue, we've heard sad stories of millions of dollars stolen, lives threatened, and even suicides," Lynda Webster said. "My husband has been targeted for years. And when one scammer threatened our lives we knew we had to act."

The PSA includes archival images of Webster as a Navy officer in World War II and Korea and later as a federal judge and head of the country's premier intelligence and law enforcement agencies. The scammer who targeted the Websters didn't know this background, just that Judge Webster was older and might therefore be susceptible to cons that prey on traits like trustworthiness, loneliness, and a yearning for more financial security.

In 2019, Director Webster discussed the Jamaican lottery scheme that targeted him and his wife Lynda. The couple worked with the FBI to capture the caller, who was arrested and sentenced to prison. Learn more

"Scammers will spend many hours and days talking to their targets, getting to know them, offering friendship and even the promise of love," Lynda Webster said. "They are skillful con artists, and family members and close friends should be aware."

Lynda Webster paid close attention to the scammer's phone calls to her husband, who invited her to listen in. In many cases, scam victims won't divulge they were victimized because they are too embarrassed or don't know where to turn. Lynda Webster was particularly vigilant because her own father was victimized in an investment scheme that cost the family a small fortune.

"It's in every family's interest to stay vigilant," Lynda Webster said. "As loved ones, we must be lovingly watchful of the well-being of the elderly in myriad ways. As seniors' mental acuity declines, their judgement erodes, and it's the family's responsibility to protect them from the people who will prey upon them."

"Scammers will spend many hours and days talking to their targets. They are skillful con artists, and family members and close friends should be aware."

- Lynda Webster

Elder Fraud

Elder Fraud

Common Elder Fraud Schemes

Protect Yourself

How to Report

Resources

Former FBI Director Airs Warning About Elder Fraud

In 2019, Director Webster discussed the Jamaican lottery scheme that targeted him and his wife Lynda. The couple worked with the FBI to capture the caller, who was arrested and sentenced to prison. Learn more

"Scammers will spend many hours and days talking to their targets. They are skillful con artists, and family members and close friends should be aware."

- Lynda Webster

Resources

Videos