A special place in hell

From Nancy Healey:

I recently I attended an Ombudsman training seminar on fraud especially targeted at seniors and other vulnerable people.  In the midst of everything else that is happening these days,  I want to highlight what has been going on right in our midst.

The speaker at the training was Debbie Deem; she is a retired FBI Victim Specialist in Los Angeles and the former Coordinator of the Ventura County Financial Abuse Specialist.  I have been to many seminars on senior fraud through the years; each time I leave believing that there is a special place in hell for individuals who choose to make money by stealing money from the vulnerable in our society.  This post will try to list highlights of her excellent presentation and provide information on the way to report suspected fraud.

The US Department of Justice’s Annual Report to Congress on October 6, 2024, highlighted the following:

• The scams with the highest financial losses for older adults – including senior living residents – were investment scams where older adults lost $1.2 billion.
• Tech support scams led to $590 million in losses, business email compromise scams led to $382 million in losses, romance scams cost $357 million, and government impersonation cost victims $180 million.
• The department’s National Elder Fraud Hotline received more than 50,000 calls in the past year and helped older victims to report potential crimes and to local available resources and services.

Researchers say anyone can be “scammed.”  Criminals design their “pitch” to target victims’ individual vulnerabilities. These are their weapons of fraud.  Debbie Deem said that “scams” is not a good word to describe senior fraud; it should be considered financial violence.

• Research dispels the myth that only the vulnerable, elderly or naïve are taken in by scammers. Anyone can be taken in because scams are customized to fit the profile of the people being targeted.  (Madoff/charity type fraud)
• It is very important to avoid victim blaming/shaming. It is the criminal who is at fault.
• It is also a major reason so many victims do not report crimes to families/police.
• Victim blaming is harmful to victims and hinders law enforcement’s ability to obtain accurate and timely information about the crime.

Transnational technology is often how fraud is committed.

• Cyber fraud crime is any activity that uses the internet to access, transmit, or manipulate internet data for illegal purposes.
• In addition to the internet, the FTC reports that the phone was used in 74% of all fraud reported. In 2023, email was the most used and phone the second. Prevention methods are to screen your calls and don’t pick up the calls unless you know who the caller is.
• These fraud crimes are often transnational, with criminals in a different country than their victims so they cannot be prosecuted.
• Deem says a scam is a theft committed with a lie.

Criminals obtain their information through dark web purchases/trades, data breaches, call center leaks, and other public records like public records, mail, social media, surveys, contests, “sucker lists,” repeat victims and cold calling.

Criminals get money from stealing data on the dark web: $50 for stolen online banking logins, $17-$120 for credit card details and information, $45 for hacked Facebook account, $150 for US Driver’s License, $20 for cloned Visa with PIN.

Red Flag Warnings and common predator tactics include the following:

• An expected contact by a stranger or government/business
• A request for money or personal information
• A sense of urgency and secrecy
• A threat or enticing offer, attention or flattery leading to a heightened emotional state by victim
• Demand for a particular type of payment
• Requiring access to your banking or retirement accounts

Payment methods used by fraud criminals to collect their money:

• Wiring money
• Reloadable debit/gift card
• Peer to peer
• Cash/couriers/gold
• Fake checks and overpayment
• Purchasing/reshipping
• Crypt/QR Codes
• Money mules

The loss of the victim’s money and sometimes life savings are terrible consequences of senior fraud but often the most serious consequences involve how the victims begin to see themselves.  The following list includes some of the life-changing results that affect victims of senior fraud:

• Divorce and family alienation
• Isolation from family and friends (especially if borrowed money)
• Loss of home/foreclosure, credit/debit issues, bankruptcy and tax repercussions/penalties
• Many diseases, conditions and disabilities are magnified by stress and anxiety due to financial loss, shame
• Loss of retirement, pension, money to live and plan for future
• Decline in physical health, self-medication, institutionalization
• Criminal charges possible (mule/courier), being sued
• Quality of care/limited assets when older and need care
• Risk of future re-victimizations
• Depression, suicide early death, murder

Many of us don’t believe that these types of fraud could ever happen to us, and I hope this is a realistic belief.  Seniors are often targeted because they have financial savings, own a home, and have good credit.  Seniors also may be less likely to report fraud because they don’t know how to and are too ashamed of having been scammed.  Another concern is that their family will lose confidence in their abilities to manage their own financial affairs.

Our elderly population is growing and the FBI reports that seniors are racking up more than $3 billion in fraud losses annually; this is already a big issue and will continue to grow.  If you or someone you know may be the victim of financial fraud, please do not let shame keep you from reporting it or encouraging a friend or relative to report it. Don’t let these criminals ruin another senior’s later years.

Please report all cases of fraud to the National Elder Fraud Hotline at 1-833-FRAUD-11.