A retired teacher interested in finance, Daniel wanted to learn about smart, cutting-edge investment strategies. He found an online forum focused on investing and joined it, hoping to learn more about current economic and investment trends. Daniel has lived alone since his wife Melanie’s death shortly before his retirement, and he has found that somewhat lonely, notwithstanding the two dogs with whom he shares his home. He also hoped to make some social contacts through the forum with individuals who shared his interests in finance, investment, and the economy.
Shortly after joining the forum, Daniel met Jim. Jim presented himself as an experienced and highly successful investor. Jim frequently praised Daniel’s curiosity as their relationship developed and offered to guide Daniel to and through lucrative investment opportunities. Their discussions quickly evolved into what Daniel perceived as a form of mentorship. Jim promised to help Daniel maximize his retirement savings through investment opportunities in cryptocurrencies.
Jim introduced Daniel to an exclusive investment opportunity with “guaranteed” high returns, based upon insider information that Jim’s uncle would provide. Skeptical at first, Daniel conducted his own research, but Jim reassured him with fabricated success stories and even a professional-looking but completely fraudulent website. Encouraged by the apparent legitimacy, Daniel made an initial investment and saw substantial gains in his account. Seeing promising returns in the early stages induced Daniel to invest significantly more of his retirement funds. It wasn’t until Jim and all of Daniel’s funds disappeared that Daniel realized he had fallen victim to an elaborate financial scam.
Does this mean Daniel was naïve? Not necessarily. According to research from the Stanford Center on Longevity, older adults, especially those experiencing social isolation, will more likely fall victim to fraud because of alterations in their cognitive decision-making processes, making them more susceptible to persuasive tactics scammers use. Essentially, loneliness and potential changes in how older adults evaluate risks and make choices may render their cognitive abilities more easily influenced and more susceptible to techniques employed by scammers.
Nothing suggests that a fraudster will not use these approaches on a younger person. Still, the statistics show that fraudsters regularly victimize seniors and that seniors are often more susceptible than younger individuals.
A report from the Federal Trade Commission (FTC) states that in 2022, seniors lost over $240 million to imposter scams alone, underscoring the financial toll these fraudulent schemes take on older populations.
Consider these strategies to help protect against these scams:
By staying informed and cautious, seniors can protect themselves and their savings from online scammers who prey on trust and financial insecurity.
