“Aging in Place” has become a popular concept as an alternative to nursing homes and “elder care” facilities. It is a choice that at some point we must all (hopefully) come to decide. However, if this trend keeps developing and evolving, I wonder if our financial institutions should do more than they are doing?
True, our credit card companies might be inclined to call us about suspicious activity, but it’s a hit or miss process. When we add online and/or telemarketing fraud to the mix, an elderly person, even though sharp-of-mind, possibly living alone seems to be an increasingly vulnerable target. It is not conjecture on my part, but the data is more than revealing in that older Americans are getting fleeced.
The Federal Trade Commission Report
The FTC annual report has just been released. Last year scams claimed nearly $6 billion dollars from Americans, with some troubling trends. I might start by saying that the 2021-dollar amount was approximately 70 percent higher than 2020 fraud. Particularly troubling was the $1.8 billion in so-called “imposter fraud,” individuals posing as “government officials from the IRS,” and the like. Also, preying on loneliness are dating services, sweepstakes frauds, legal services finding long-lost relatives and the like.
What is particularly troubling is the fraud amount tracking with the increase in age. From approximately the ages of 20 to 69, the average amount of fraud (when it did occur in 2021) was about $500. From 70-79 it averaged $800 but from age 80 and above, it shot up to $1,500.
Online fraud schemes, particularly when it occurs to an elderly person who lives alone, can be extremely frightening, especially when the email appears to be official. Such emails, purporting to be from retailers, Telephone calls masquerading as someone from the IRS or supposedly, social security, can be overwhelming as well. These frauds invariably lead to identity theft as the caller urges the elderly person to give up their credit card numbers or urge them to do wire transfers. With younger individuals, fraudsters are demanding crypto-currency transactions – even more difficult to trace.
Targeted Fraud
The level of sophistication among fraudsters increased in 2021 as well. This may be a “Good News/Bad News Scenario.” Certain states with elderly or unsophisticated consumers were especially hard hit with fraud, starting with Washington, D.C., residents, then the next five states: Georgia, Maryland, Delaware, Nevada and Florida. States with higher-than-normal identity theft include (in order): Rhode Island, Kansas, Illinois, Louisiana, and Georgia.
Why do I perceive this as good news? Because the media, states, banks, credit card institutions and caregivers, could be doing more if they so desired. There could be a more active response, and even (gasp) “products” put into place to help our vulnerable. The ethical question is: why aren’t they? Why are so many financial institutions, governments, and credit card issuers washing their hands of any meaningful support in the light of record fraud?
There must be a voluntary system that could be instituted to help those who are afraid of being scammed. However, it would precipitate scenario where issuers would agree to take on higher ethical responsibility. While I am not arguing against higher, even more usurious fees, I can’t help but wonder what we are paying for and what could be done with those fees for our most vulnerable?
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