Many seniors falling victim to ‘Impostor Scams’.

Many seniors falling victim to 'Impostor Scams'.

Many Older Adults Still Vulnerable to Phone Scams, Study Finds

Senior Scam Image Source: Amy Norton HealthDay Reporter

Phone scams have become a common threat in today’s society, and although many older adults are savvy about these scams, a significant number still remain vulnerable. According to a recent study, when a simulated “government impersonation” scam was conducted, over two-thirds of seniors knew how to handle the situation and ignored it. However, the rest engaged with the scammer, either by calling the provided 800 number or answering the call from the fictional government agency.

Worryingly, some seniors were not cautious enough, as over 16% either didn’t question the legitimacy of the agency, confirmed personal information, or even provided the last four digits of their social security number. These findings, published in the journal JAMA Network Open, highlight the need for increased awareness and education regarding phone scams targeting older adults.

Scam artists have become more crafty in their tactics. “When it comes to being a scammer, it’s a full-time job,” says Genevieve Waterman, director of economic and financial security for the nonprofit National Council on Aging. Government impersonation scams are one of the most common types of financial fraud, often targeting older adults by pretending to represent agencies such as Medicare or the Social Security Administration. They use various strategies, such as threatening the termination of benefits or requesting Medicare numbers to steal and misuse personal information.

The scammers even go as far as spoofing government agency phone numbers or using caller IDs that display “Social Security Administration.” These tactics can make victims believe they are dealing with legitimate government entities. In 2022 alone, older Americans reported nearly half a million fraud cases, resulting in a collective loss of over $1.5 billion. The true extent of the problem is likely much larger, as the AARP estimates that fraudsters steal over $8 billion annually from older adults.

Financial fraudsters specifically target seniors due to the misconception that they possess significant wealth. However, many older Americans are just getting by financially. Falling victim to scams can be devastating both financially and emotionally for older adults. Waterman emphasizes the importance of public education to combat this issue and suggests that everyone, regardless of age, should become scam-savvy.

For the study, researchers at Rush Alzheimer’s Disease Center in Chicago staged a fake scam, involving 644 older adults who were participating in an ongoing research project. These participants were contacted through mail, email, and phone calls, claiming to be from the non-existent “U.S. Retirement Protection Task Force.” The communications warned them of a potential breach of their Social Security and Medicare records.

The results of the study revealed that 68.5% of the seniors did not engage with the scam. Another 15% engaged but expressed skepticism. However, just over 16% engaged without questioning the validity of the situation. Surprisingly, the majority of those who engaged without skepticism did not suffer from dementia. The findings suggest that a significant number of older adults, even those without cognitive impairments, are vulnerable to scams and fraud.

Patricia Boyle, a professor and neuropsychologist at Rush, highlights the need for education on common scams and general financial literacy. Waterman points out that her organization provides online resources to address these issues, emphasizing the importance of community-wide efforts in the fight against scammers.

Ultimately, the study’s findings serve as a reminder that anyone can fall victim to scams, regardless of their age or cognitive abilities. It is crucial to prioritize public education to empower individuals to recognize and protect themselves from phone scams. By coming together as a united front against scammers, we can help safeguard the financial and emotional well-being of older adults and the wider community.

Sources:

Patricia Boyle, PhD, Professor, Psychiatry and Behavioral Sciences, Rush Medical College, Neuropsychologist, Rush Alzheimer’s Disease Center, Chicago
Genevieve Waterman, DSW, Director, Economic and Financial Security, National Council on Aging, Arlington, VA
JAMA Network Open, Sept. 22, 2023 – Read Article

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