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UNDERSTANDING SENIOR FRAUDSOME STATISTICS A 2004 Federal Trade Commission study of 2,500 consumers found fraud-victimization rates actually dropped with age, with 11% of those 25 to 44 reporting that they'd been scammed, compared to 5% of those over 65. When the FTC controlled for other factors, like marital status and income, older people turned out to be no more or less likely than younger people to become fraud victims. On the other hand, telemarketing scams seem more likely to target older Americans. An AARP study found half of the consumers targeted for such scams were 50 or older (an age group that comprises about 40% of the adult U.S. population), while a more recent report by the National Fraud Information Center showed 34% of those victimized were over 60 (an age group that comprises 23% of the adult population). An AARP study of a phone-based lottery scam where victims were induced to pay a fee to get supposed winnings found the vast majority of victims (71%) were 75 or older. Lottery-scam victims the AARP studied also were more likely to be female (65%) and low income (half had incomes under $30,000). The older folks who fell for a phone-based investment scam, by contrast, were more likely to be male (80%) and have higher incomes (half made more than $75,000). NOTE: One of the strongest predictors of future victimization is past victimization. A victims name may be put on a sucker or mooch list and sold to other crooks. A victim may also be contacted by other scammers who offer to help them recoup their losses from the previous scam. Victimization by relatives or caregivers by its nature is repetitive. I. CHARACTERISTICS OF ELDERLY VICTIMS RESEARCH HAS SHOWN THAT THE FOLLOWING PERSONAL FACTORS MAY INCREASE A PERSONS LIKELIHOOD OF BECOMING A VICTIM OF FRAUD: 1. SOCIALLY ISOLATED Older adults often have lost family members and their circle of friends is shrinking. Consequently they often live alone and are increasingly isolated. Loneliness can cause them to engage in conversations with anyone who will talk to them. - Sales pitch provides social contact that they crave - Isolation deprives them of family members or friends in the immediate area from whom to seek advice. 2. SOCIALLY ACTIVE Older adults may be more vulnerable to fraud because of increased exposure - Those with active social lives are more visible - They experience a broad array of consumer situations. 3. LACK OF KNOWLEDGE: Some seniors lack knowledge on financial, legal and insurance matters. If a spouse has died and that spouse handled those matters, the survivor may not be prepared to deal with those issues. Inexperienced and unsophisticated investors are targets for fraud. - Often reluctant to admit that they do not understand what they are signing, or the consequences of their actions - Because of their limited knowledge, they may give little attention to their financial accounts. Seniors may not be as aware of frauds, scams, and misleading practices. - The less you understand about the real world, the more likely you are to fall victim to con artists and exploiters. 4. OVER-DEPENDENCE ON CAREGIVER OR ADVISOR If the older adult is dependent on one caregiver, he/she is more likely to overlook or not report abuse or exploitation by that caregiver for fear of losing the help they need. Likely hood of abuse or exploitation increases if caregiver is: - Financially dependent on older adult - By nature a controlling individual - Or is able to further isolate the older adult. 5. OVERLY TRUSTING AND CHARITABLE If older adult is overly trusting he/she is more likely to accept the word of a stranger at face value. The overly trusting adult is also more likely to trust a friend or relative even when what is being suggested does not make sense. - Victim projects trust on perpetrators He wouldnt tell me I needed to do this if it wasnt true. Overly trusting individuals are more likely to believe marketing appeals, even if they defy logic. 6. OVERLY INDEPENDENT Overly independent individuals are more vulnerable to fraud because they are resistant to seeking a second opinion. They fear that asking for advice will indicate a weakness or inability to handle their own affairs. The fear is that if they appear unable to handle their own affairs, their family may take control for them. 7. ANXIETY ABOUT THE ADEQUACY OF ONES SAVINGS OR FAILING HEALTH Older adults who fear that their savings are inadequate to see them through life are more likely to fall for lottery/sweepstakes scams and investments that promise unrealistic returns. Older adults with serious illnesses may be more susceptible to sales people or con artists who offer products or services that claim to restore their health. 8. INABILITY TO HANG UP ON TELEMARKETERS Those who think it impolite to hang up on a telemarketer are more likely to buy what they dont need or cant afford, and are more likely to give sensitive information to a stranger. 9. HOME OWNERSHIP Older adults are primarily home owners - Home owners are more visible, easier to get to, and are perceived as being wealthier - Older adults may be easier to find since they are not at work 10. MULTIPLE SOURCES OF INCOME Criminals perceive older adults as being wealthy because they often have several sources of income - pensions, investments, savings, Social Security II. WHY ELDERLY VICTIMS DONT REPORT STATISTIC: Adult protection specialists estimate that as many as 80 percent of victims of financial exploitation do not report their victimization. ELDERLY VICTIMS DO NOT REPORT BECAUSE: 1. They believe they are to blame for their own exploitation. 2. They are ashamed and embarrassed 3. They are fearful of being separated from their friends and family - Because I have been victimized, my family may decide that I can no longer take care of myself and will decide to place me in a nursing home. 4. They are economically, physically or psychology dependent on their abuser - If I report the exploitation, this person I depend on may leave or be incarcerated, and I will be alone. 5. They are intimated by the Criminal Justice System. 6. They are afraid of being harmed by the person who is exploiting them. 7. They are afraid of not being believed by family, friends and the legal system. Reporting exploitation:
1) provides closure and healing to the victim 2) takes the perpetrator off the street.
III. CONSEQUENCES OF VICTIMIZATION Older adults who are victims of financial exploitation and fraud: Experience significant trauma as a result of these life-changing events. Symptoms of trauma may include: - increased illness - somatic distress - untreated physical or mental health problems The physiological process of aging brings with it a decreased ability to heal after trauma, both physically and mentally. Feel personally violated Lose trust in self and others May suffer further isolation from family, friends, and the community Financial exploitation and fraud can deplete life savings, resulting in: - loss of a secure, comfortable retirement, and - loss of access to in-home services, medical care, and insurance. FOR THOSE VICTIMS LIVING ON A FIXED INCOME, BEING A VICTIM OF FRAUD MAY MEAN GOING WITHOUT FOOD, MEDICATION, AND OTHER NECESSITIES. Behavioral Responses Trauma reactions can manifest similar to grief. Shock, anger, guilt, shame, depression and sorrow may be indicative of trauma. Feelings of fearfulness, helplessness, confusion and self-blame may be apparent. Risk of isolation is particularly high. Older adults fear their competence and their ability to care for themselves may be questioned. IV. SO WHAT WORKS? AARP's study show an educational approach succeeds in cutting the victim's response rate to telemarketing calls by about half. What doesn't work well, the AARP found, are scare tactics or any approach that makes the older person feel like an idiot for having been victimized.
Information must be provided in a way that reflects empathy for the victim--the notion anyone can fall prey to telemarketing fraud and that the victim is not stupid for doing so," the AARP researchers concluded. Otherwise, the victims may try to rationalize away the situation by denying they've been had, or avoiding the subject altogether, which means they may not pay attention to a discussion of techniques to help them avoid future scams.So how should you approach a fraud victim or potential victim? DONT PREACH. Being negative or condescending increases the chances your message will be tuned out. DISCUSS THE SIGNS. Con artists often press victims to make a quick decision, citing some impending deadline. They often want credit card numbers or other personal information; seniors should be warned not to provide such information to anyone they don't know. TALK ABOUT CONCRETE COPING STRATEGIES. Your friend or family members need to know it's OK to hang up on telemarketers. If they've been repeatedly victimized, discuss the possibility of changing their phone number; scam artists trade "sucker lists" of prior victims and the only way to get off may be to abandon the old number. V. CHARACTERISTICS OF FRAUD PERPETRATORS FRAUD PERPETRATORS ARE OF TWO BASIC TYPES: 1. Dysfunctional people with low self-esteem who may be abusing substances, feeling stressed, or feeling the weight of their caregiver responsibilities. They do not generally seek out their victims, but instead take advantage of opportunities that arise. 2. Those who methodically target vulnerable seniors, establish power, and use that power to obtain control of the victims assets. Those who target the elderly may be strangers who have never met their potential victims, or persons who have detailed knowledge and a personal relationship with their potential victim. IF THE PERPETRATOR IS A STRANGER: 1. Most are male. 2. They are charismatic & controlling; building on victims trust - Uses promises whenever possible - Will resort to threats and intimidation if promises do not work. 3. They are seldom violent, but without conscience. - Not bound by conventional norms or ethics - Rationalize their behavior 4. They have all types of psychological dysfunctions revealed in their distorted thinking processes and lack of regard for others 5. They may be motivated by profit or a need to feel powerful or important. - The challenge of the fraud itself may provide a high - You have a college degree and think you are so smart; but I just took all your money. So who is the smart one? 6. Often carry out their fraud without ever meeting their victim - Telemarketing fraud - Mail fraud - Internet fraud IF THE PERPETRATOR IS A FRIEND, RELATIVE OR CAREGIVER: 1. 60% are family members. 2. 60% are male. 3. Offenders tend to be significantly younger than their victims - 40% are 40 and younger - 40% are age 41-59 4. Offenders fall into three categories: - Adult children, grandchildren and other relatives - Professional caregivers - Close friends or others in a position of trust 5. Because of their relationship with the victim, these offenders often gain access to documents and assets that enable them to carry out their fraud without any direct participation from their victims. - Discovery of fraud, therefore, may take longer, with greater losses 6. Prosecution is often hindered due to the reluctance of the victim to testify against a friend or family member.
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