4 min
The Role Family Members Play in Protecting Seniors from Fraud
Consumer fraud is a massive issue that affects individuals of all ages. According to the Canadian Anti-Fraud Centre, consumers racked up over $530 million in victim losses due to fraud and cybercrimes in 2022. That's nearly a 40% increase from the unprecedented $380 million in losses in 2021. But sadly, that's only the tip of the iceberg. It's estimated that only 5 to 10% of people report fraud so the real number is likely in the billions. It's also growing, in large part due to technology advances in areas such as artificial intelligence (AI). Seniors, particularly those aged 55 and older, are seen as a lucrative target for scammers due to a combination of factors that make them particularly vulnerable. That’s why it's important to provide seniors and their family members with a more in-depth understanding of how scammers work and how they prey upon this demographic. In 2022, the Canadian Anti-Fraud Centre received fraud and cybercrime reports totalling a staggering $530 million in victim losses. Nearly a 40% increase from the unprecedented $380 million in losses in 2021. Knowing these common scams, and having practical advice will go a long way to preventing fraud. The emotional and financial toll of consumer fraud on seniors can be devastating, leading to significant financial loss, emotional distress, and a diminished quality of life. Let’s first look at why seniors and their family members need to be particularly vigilant and informed about how fraud works: Key Factors Making Seniors Vulnerable to Scams and Fraud Financial Stability: Seniors often have savings, pensions, and other assets that make them attractive targets. Cognitive Issues: Age-related cognitive decline can impair judgment and decision-making abilities. This can make it harder for them to detect fraudulent schemes. Social Isolation: Many seniors live alone and may not be close to family or have friends they can consult. A strong desire for companionship can also lead seniors to trust unfamiliar individuals, increasing their risk of falling victim to scams. Lack of Technological Proficiency: Many seniors are less adept at technology, making them more susceptible to online scams. The move to online platforms for many banking services has also been a challenge for many seniors. Language Barriers: This can be a factor, especially for newcomers to Canada. Politeness and Trusting Nature: Seniors often come from a generation where politeness and trust were paramount, making them less likely to question suspicious behaviour. Fear of Losing Independence: Scammers may exploit seniors' fear of losing their independence by posing as helpers or offering solutions to maintain their autonomy. 10 Common Ways Seniors are Victimized by Scammers Unfortunately, many scammers are very tech-savvy and creative in their methods of preying on consumers. Now with the increased availability and power of artificial intelligence (AI) technologies, these scammers are getting even more sophisticated. Here are just some of the methods they use: Phishing Scams: scammers send emails or texts pretending to be legitimate organizations, asking for personal information or money. A popular consumer scam involves threatening taxpayers or using aggressive and forceful language to scare them into paying fictitious debt to Revenue Canada (CRA). Telemarketing Fraud: Scammers call seniors, offering fake products or services, or posing as charitable organizations seeking donations. Investment Scams: Seniors are targeted with promises of high returns on investments, often involving complex financial products that are hard to understand. Medicare and Health Insurance Scams: Scammers pose as Medicare representatives to steal personal information or offer fake medical services. Lottery and Sweepstakes Scams: Seniors are informed they've won a prize but need to pay a fee to claim it. Gift Card Fraud: Scammers steal the information from unsold gift cards in stores and use it to buy merchandise after the card has been activated by a consumer. Grandparent Scams: scammers pose as a grandchild in distress, asking for money to handle an emergency situation. Home Repair Scams: Con artists offer home repair services, take upfront payments, and either do shoddy work or disappear entirely. Home Appliance Scams: Equipment is often provided through overpriced rental contracts or questionable renovations after homeowners are tricked into signing mortgage documents which are used as collateral. Romance Scams: Scammers build romantic relationships with seniors online, eventually asking for money. Note: The Canadian Anti-Fraud Centre is jointly managed by the RCMP, the Competition Bureau, and the Ontario Provincial Police.To report the incident call your local police department or call the Canadian Anti-Fraud Centre at 1-888-495-8501. And remember to always beware when asked to provide financial and personal information of any kind to anyone.