As the Baby Boomers age and the elder population expands, criminals are looking for ways to capitalize. And they are having more success than ever – utilizing new advances in technology to commit fraud and target elder retirement savings. Elders and the ones who care for them need to stay informed as this sophistication increases.

Any type of scam can be turned into an elder scam by focusing on victims who are in their golden years.  Typically, they involve the transfer of money to a stranger or imposter for a promised benefit or good that the older adult did not receive. In 2023, banks reported more than $27 billion in suspicious activity related to elder scams,[1] and reports filed by the public to the Federal Bureau of Investigation indicated an average loss of more than $33,000 per case.[2] And these numbers may be conservative, as elder fraud cases may be underreported and can often go undetected.

One of the technologies behind these staggering figures is artificial intelligence (AI). Advanced methods of masking one’s identity using AI make it difficult to detect fakes. Voice print – or voice clone – scamming is becoming more of an issue when it comes to impersonation fraud. If a criminal is able to get a clip of a voice either off a video on social media or by calling and having a brief, innocuous conversation with a person, they can generate an imitation to be used as part of their ruse.[3] “Older adults are often easier prey for these types of fakes, because a recognized voice when applied to certain scam strategies is often enough to elicit an action,” says Mark Kwapiszeski, Head of Enterprise Fraud at PNC.

Two Main Scam Strategies to Watch For

While there are myriad types of scams used to target elders, they all generally follow one or two main strategies: 1) elicit a strong reaction – fear, excitement – and apply a sense of urgency to get a person to act quickly before thinking, and/or 2) entice a person with an offer that seems too good to be true, yet too alluring to pass up. Here are some of the more common types of elder scams:

Scams that Apply a Sense of Urgency:

  • Tech Support. Someone will contact the victim and claim they need to remotely access their computer to fix a software problem, then use that access to steal the victim’s personal or financial information.
  • Government Imposter. This scam can often trigger panic, as the fraudster may tell the victim they owe a debt that must be paid immediately or face arrest, asset seizure, or termination of benefits.
  • ** This scam typically happens by phone and sometimes involves a voice print of an actual grandchild. An elaborate story is given, claiming a loved one is in trouble and needs money to be protected.

Scams that Offer Something Too Good to be True:

  • ** The scammer makes false claims of a high-return investment to trick the victim into giving them money and often asks to be paid in an unconventional way, like cryptocurrency, where there is little to no chance of recovering the funds.
  • ** The scammer develops a fake identity and creates the illusion of a romantic relationship to manipulate or steal from the victim.
  • Lottery/Sweepstakes. Sweepstakes or lottery scammers make contact by phone or mail to say that the victim has won the lottery or a sweepstakes but claim the elder has to remit some sort of processing fee before they can get their prize.

Take Protective Measures and Stay Alert

The most effective way to help prevent any type of fraud is to pause when being rushed and take time to verify the legitimacy of both the person making contact and the claim they are making. To reduce the odds of your voice being cloned, experts suggest exercising caution when speaking on the phone with strangers. To better protect against fraud, it is good practice to always verify the identity of someone contacting you with whom you are unfamiliar by disconnecting from the original communication channel, taking time to verify identity, then attempting to make contact through a different channel. For instance, hang up from a phone call that you received, get a number for the company, government agency or family member from a trusted source (such as a company’s official website) and use that to call back and verify.

When it comes to scammers that establish a relationship over time to build trust, verify legitimacy using a third-party resource before investing. Be leery of anyone asking for you to pay in nontraditional ways that will limit recovery options. And when it comes to online romance, confide in someone you trust to get an objective opinion when logic may be clouded by emotion or romantic feelings. The old saying still rings true - If something seems too good, it probably is.

If you’d like to learn more about protecting yourself and your loved ones from cyber fraud, visit PNC Bank’s Security & Privacy Center for educational resources.

If you believe you or someone you love has been a victim of fraud, you can access resources by contacting the Department of Justice Office for Victims of Crime’s National Elder Fraud Hotline website or call 1-833-FRAUD11.