Elder Fraud on the Rise: How to Spot & Prevent Scams

In this episode of the Fraud Fighters podcast series, host Debbi Fetter, Partner and Managing Director for our risk management practice, and Senior Manager Julie Mixtacki explore the growing issue of elder fraud—a range of scams that prey on vulnerable adults over 60.

They break down common schemes like romance scams, tech support fraud, and more. Learn how these scams work, key warning signs to watch for, and practical ways to help protect seniors from financial abuse.

Debbi S. Fetter: Hello everyone and welcome to another episode of the Herbein Conversation podcast series where we dive into some of the most pressing issues in the modern workplace.

I’m Debbi Fetter, Partner and Managing Director in our firm’s Risk Management
practice and Host of the Herbein Fraud Fighters podcast series - your go to podcast for the latest in fraud and cybersecurity tips & trends.

Today we're discussing a critical and often overlooked issue: elder abuse. Joining me
today is Julie Mixtacki, a Senior Manager in our Risk Management practice who
specializes in suspicious activity detection and prevention.

Welcome, Julie!

Julie J. Mixtacki: Thank you for having me, Debbie.

It's a pleasure to be here to discuss such an important topic. Elder abuse and fraud are growing issues and I'm really looking forward to discussing how we can protect vulnerable individuals.

Debbi S. Fetter: As am I. So, let's dive in and start with the basics. What exactly is elder abuse or elder fraud?

Julie J. Mixtacki: Elder abuse is any intentional act or failure to act that causes harm or creates a risk of harm to an older adult, typically 60 years and older. Fraudsters tend to view seniors as easy targets due to cognitive decline, social isolation, or unfamiliarity with digital fraud tactics.

Debbi S. Fetter: How prevalent is elder abuse?

Julie J. Mixtacki: Unfortunately, elder abuse is more common than many people realize.
It's important to note that children and grandchildren of the elderly are the most likely to perpetrate elder financial exploitation and abuse.

Published sources indicate approximately 1 in 10 Americans aged 60 and older have experienced some form of elder abuse, and during the COVID-19 pandemic, the prevalence of elder abuse increased significantly, with some studies suggesting that one in five older adults reported experiencing abuse. The AARP recently reported $28.3 billion in elder financial exploitation occurs annually, and this only represents reported cases.

Debbi S. Fetter: Wow, that's alarming. Especially since we have an aging population and more and more of those people who are in that category of 60 plus.

Tell our listeners what are some of the common types of elder abuse schemes that are out there.

Julie J. Mixtacki: Well, there are several types of elder abuse schemes that perpetrators use to financially exploit older adults, and they've certainly evolved since COVID.

Few of the most common examples that we see are romance scams, where the fraudsters can build a fake relationship over time to steal money from the victim ultimately. We also see a lot of tech support scams where fake agents will trick seniors into giving access to their devices.

Unfortunately, we also see a lot of grandparent scams and as part of this topology, criminals will pose as family members in distress asking for urgent financial help due to an emergency.

In one recent case that I reviewed, the fraudster called the senior victim acting as their grandson, frantically saying they've been arrested and needed to be bailed out of jail immediately, and in the moment of the frenzy that was created, without taking time to call another family member to confirm the story, the victim provided their debit card information over the phone to pay for the supposed bail.

There have even been some cases of the fraudsters coming to the victim's house to collect cash for the bail, and in this case, it's not only a financial risk but also a physical safety risk, since now they know where the victim lives. 

We've also seen an uptick in investment & Medicare fraud. In these cases, the scammers are luring seniors into fake investments. Or they exploit Medicare benefits.
Law enforcement is seeing an uptick with this fraud type in the emergence of “pig butchering”. It's an awful term, but it's also an awful type of fraud. In these cases, the victim is considered the “pig” and is fattened up by the fraudster who works their way into the victim's life to be seen as a trusted friend or advisor. Once they inserted themselves in the victim's life, the friend introduces them to a great investment opportunity, typically involving cryptocurrency. The victim ends up wiring the funds for the investment and once the fraudster has the funds, they cut off all communication and the money is gone and in a lot of cases this drains the senior’s retirement account or bank account.

Then in the last type that we see is unauthorized check cashing and this is usually done by those closest to the victim, whether it's a family member or a caregiver. In this case, the perpetrators may forge or steal checks from the elder's checkbook and cash them without permission. This could be done by someone that's granted power of attorney to the elderly victim or in many, many cases, it's a close confident that shows the elder some additional attention and companionship that they crave so badly.

Debbi S. Fetter: There's really some serious issues and unfortunately, they're common issues that we see day-to-day. I know I've heard that in my own personal life with those in my inner circle. It really seems like it's most of the scams play on the emotions of the elderly, whether they're easily confused or they're just unsuspecting and they're trusting more so than others. What comes to mind is it takes a village to combat such a pervasive and invasive type of fraud and abuse like this. It seems that everybody needs to work together to have the elders back, whether it's their family, their banks, even you mentioned the butcher, and then the businesses that they interact with just to understand what's going on and watch for some warning signs.

Speaking of warning signs, what are some of the warning signs that you've seen of elder exploitation that our listeners should be on the lookout for?

Julie J. Mixtacki: Absolutely. And your analogy of it takes a village - it truly does take a village when it comes to preventing and detecting elder abuse.

Some warning signs to look out for may be unusual financial activity, for example if the victim has unexpected withdrawals or financial changes. This could even include overdrawn accounts that they weren't aware of, or new accounts that have been opened in their name by the fraudster.

You also want to look out for an elderly victim who develops a reluctance to discuss money, or if there's an environment of fear or secrecy around financial discussions.
In many cases, the victim knows that they've been duped, or they suspect it in spite of countless warnings from their family members or even their bank, and they don't want to admit that they were duped and they decide just not to discuss it at all.

You might also see a red flag with unexplained contact with strangers. In this case, new friends asking for money, or a new companion in their life who show a lot of interest in their finances. If you're in the bank, you might also see someone new coming in with the victim, who talks over them or asks questions about the accounts that they're not authorized to be asking questions about, and family members might even see unpaid bills starting to happen. In spite of having sufficient funds in a bank account, essential payments are missed.

Debbi S. Fetter: So it seems like whether we're a family member, whether we're a trusted tax advisor or whether we’re the person at the auto shop, or that the person always goes and visits, we all need to be vigilant and be on the lookout.

What steps can people take to prevent and detect elder abuse or fraud?

Julie J. Mixtacki: There are many, many steps, but the most impactful is interaction with the elder, and I would point out ongoing interaction, including communication and observation. Some of the best elder abuse fraud fighting strategies are education and awareness. Educating older adults, their caregivers and the public about signs of elder abuse and how to report elder abuse is crucial. Under reporting is a huge problem when it comes to this type of fraud.

Our own firm can play a part as they listen to their clients. A simple question when your instinct tells you something is off can make a huge difference. So many abuse cases that I've seen were stopped in their tracks by someone asking that one question or gently probing when something seemed off. Just make sure you ask that question if your instinct is telling you something is wrong with the potential victim. 

You can also do regular check ins. Family members and friends should regularly check in on older adults, especially those who are isolated. Routine visits let the adult know someone cares and is watching out for them. But it can also let potential fraudsters like caregivers, who are the second most likely to commit elder abuse, know that someone is watching and cares about that individual.

We also want to make sure that our elders put up financial safeguards. Implementing those financial safeguards, such as setting up direct deposit for checks and using automatic bill pay or setting up account alerts. Those can all help protect against financial exploitation, and we want to make sure that those are put up by a trusted individual who can oversee finances via a legitimate power of attorney.

And then the last step is really looking into reporting mechanisms and knowing what's available out there. You want to make sure that you're establishing clear and accessible reporting mechanisms for suspected abuse, such as hotlines and online reporting tools. The PA Attorney General website actually has great resources out there for education and a lot of different options for reporting.

Adult Protective Services and local law enforcement are also there to help in these situations and can step in quickly once they've been notified. Early detection is definitely key because it's important to remember that many victims are vulnerable to re-victimization. Once a fraudster has successfully perpetrated a scam on that victim, they will share the victim’s information so they can be targeted again and again.

Debbi S. Fetter: Those are excellent strategies. It's really clear that preventing and detecting elder abuse requires vigilance and a village.

Julie, thank you for sharing your insights and perspectives. It’s very informative.

Julie J. Mixtacki: My pleasure, Debbie. It's very important for everyone to be aware of elder abuse. The best defense is awareness. Helping seniors recognize and avoid those scams is crucial.

Debbi S. Fetter: Awesome, that is well said. I couldn't agree more.

Thanks again, Julie, and thank you to our listeners for tuning in to this episode of Herbein Fraud Fighters. We hope we've given you some beneficial tools for your fraud toolboxes. Stay informed, stay vigilant, and let's work together to combat elder abuse.

Should you need assistance implementing some of the detection strategies we discussed today to better protect your elder clients, friends or family members, or just want to talk through some of your fraud concerns, please reach out to our Risk Management team. 

If you enjoyed this episode, I'd like to encourage our audience to listen to our Herbein Conversation series, Fraud Fighters, which is available on our website -  herbein.com- or Spotify or Apple Podcasts.

Stay tuned for future topics where we dive deeper into check fraud, construction fraud, and identity theft.

Thank you again for tuning in and remember, keep up the fight and see you next time fraud fighters!