Financial abuse and older adults

Anyone can fall victim to fraud, but:

  • Older adults often have more savings than younger people, meaning their financial losses tend to be greater when defrauded.
  • They also generally hold more assets and therefore have stronger credit assessments, making it easier for scammers to finance fraud through loans taken out in their name.
  • In addition, older adults may receive pension payouts and sometimes come into unexpected inheritances or accident compensation. Having these funds stolen can severely impact their quality of life in the years ahead.

The situation facing older adults

Older adults did not grow up with today's technology, which continues to evolve rapidly as the world becomes increasingly digital. This makes them more vulnerable to online fraud, including tech support scams where callers falsely claim to represent a technology company warning that a computer has been hacked. The scammers aim to gain remote access to the person's computer using takeover software to steal their money.

When older adults reach a turning point in life—cutting back on work or retiring altogether—they often find themselves with significantly more free time. This transition, combined with the loss of daily contact with colleagues, can lead to loneliness and boredom. Lonely individuals are more likely to fall victim to romance scams. Those who are bored often seek out excitement, sometimes jumping at investment opportunities that turn out to be scams. Fraudsters are highly skilled at identifying these unmet emotional needs in their victims.

People are generally more vulnerable to fraud in the months or years following a serious accident or traumatic life event. The likelihood of experiencing these setbacks increases as we age.

Financial abuse by a family member. Because older adults do not always feel confident using modern technology, they may need to rely on relatives for help. Declining health can also make this assistance necessary.
 
One example of this abuse occurs when an adult child "manages" a parent's finances and handles responsibilities—like picking up medications or buying groceries—while stealing the parent's electronic ID, taking out personal loans in their name, or draining their savings.
This creates an extremely difficult situation, as the parent is both dependent on and deeply attached to the child, leaving them to face financial loss alongside a profound sense of betrayal.

Banks offer various resources to help people deal with online fraud. You can reach out by phone or email, whichever is most convenient for you. Below are links to information from the major banks on how to protect yourself from online fraud and what to do if you are targeted. Remember, online fraud can happen to anyone—what matters most is taking action.

An example of financial abuse

A few months ago, Andri received a call from an unknown number. The caller asked whether he would like to support poor children abroad. Andri thought it was a worthy cause and asked how he could help. The caller asked for Andri's ID number and full card details, claiming they were necessary to communicate with the bank. Trusting the caller, Andri provided all the requested information. It later came to light that the caller used this information to withdraw significant sums from his card.