Avoiding senior scammers

Last Christmas, my grandmother told me over scrambled eggs and buttered toast about the phone calls she had been receiving.

“The caller said, ‘Hi Grandma! It’s me, your grandson.’ I asked them oh really? What’s going on? The guy said he was in jail and needed money to bail him out.”

I stopped chewing and looked up at her from the same table where she has slid me plates of eggs and toast for decades. Her only grandson is my only son, who had been away in training for months. “You didn’t give anyone any information or money?!” I insisted.

“Oh, no. I knew it wasn’t him, it didn’t even sound like him.”

I breathed a sigh of relief. The National Council on Aging counts the ‘grandparents scam’ in which fraudsters impersonate a grandchild in need among the top five financial scams targeting older adults in the United States. According to an AARP study, an estimated $28.3 billion is lost to senior financial fraud each year. Although the federal government launched a massive investigation in the 90s that resulted in hundreds of convictions, telemarketing scams are still widely in use.

In the spring of 2021, cast member Jen Shah of the popular “Real Housewives” franchise was convicted and sentenced to six-and-a-half years in prison for operating a nationwide telemarketing fraud scheme that targeted older adults. According to the U.S. Attorney’s Office in the Southern District of New York, “victims were defrauded over and over again until they had nothing left.” As millions of stunned viewers tuned in, Shah was arrested while the cameras were rolling.

Rapidly advancing technological innovations have allowed for more sophisticated online fraud as well. Over the past few years, cryptocurrency scams have been on the rise as have online romance scams, government impersonation scams, and tech support scams.

In August of 2023, popular YouTube account Scammer Payback held a gathering of hackers intent on outing some of the perpetrators of online scams. The hackers were able to identify scammers, turn on their webcams, and expose their identities to the authorities. Unfortunately, the huge financial gains reaped year over year through online scams embolden a new crop of fraudsters for each round of arrests and prosecutions.

While anyone can be a victim of financial abuse, older adults are often targeted by scammers because issues that impact the older adult population like decreased cognitive function, physical disability, and dementia increase susceptibility to fraud. The impact of victimization go beyond economic losses — the mental health outcomes include higher rates of PTSD, depression, anxiety, and poorer overall health. However, some victims of elder financial abuse are afraid or ashamed to come forward — so many instances go unreported. In fact, only an estimated 33% of instances of financial abuse perpetrated by a stranger against an older adult are reported to authorities. Tragically, the most likely perpetrator of elder abuse of any kind is a family member or caregiver. These complex ties make reaching out for help even more difficult.

A 2022 Iowa law designed to close gaps in the reporting and prosecution of elder abuse identified for the first time elder abuse as an independent category, and enhanced the penalties for theft against older adults who were targeted due to their age.

Elder abuse can be reported to the Iowa Department of Human Services at their 24-hour hotline: 1-800-362-2178.

Another resource older adults or advocates can connect with is their local Area Agency on Aging; there are 6 total Triple As serving the state of Iowa, and each has staff specifically assigned to support individuals who are experiencing abuse and in need of assistance.

You can find the Area Agency on Aging for your region at hhs.iowa.gov/programs/programs-and-services/aging-services/aaas

The FTC has also created a website for reporting fraud, and it is available at reportfraud.ftc.gov

Sofia DeMartino is a Gazette editorial fellow. sofia.demartino@thegazette.com