Advancements in technology have enriched our lives, helped remove barriers, and made it both easier and faster to get things done.

However, improved technology has also spawned the rise of scam artists and other criminals who deceive their victims and cause financial harm (not to mention emotional and/or reputational harm). While everyone is susceptible to technology-related scams, elder financial abuse is widespread. Of course, many seniors are adept at using technology, but as we age, health issues and not staying current with technology could make seniors an easier target of scams.

Today’s convincing scams make it difficult to distinguish real from fake – while growth of artificial intelligence and deepfake technology makes it even more challenging. Fraudsters often use two different tactics to exploit the intended victim: impersonation and intimidation. Let’s consider each tactic, and some ways to help minimize the occurrence of elder financial abuse.

Impersonation

If you’re like many Canadians, you’ve received phone calls, text messages or emails claiming to be from Canada Revenue Agency, asserting that you owe money. The sender may want immediate payment to “cover” taxes, often asking for credit card info or payment via certain gift cards. Or they may instruct you to provide financial details to confirm your identity (e.g., “For your safety, we need this info to ensure we’re speaking with the right person.”). While some people may recognize this as a “phishing” scam intended to deceive, elders who may fear government authorities or can’t distinguish between legitimate and fraudulent – admittedly, scams are getting more sophisticated – could panic and provide the requested financial information. Sometimes just opening a message or link could put the victim at risk of computer viruses or giving bad actors access to sensitive files.

Of course, impersonation reaches beyond the government. Scammers may also impersonate banks, utility companies, charities and more. Some may claim you’ve won a prize, and all you need to do is provide bank account or credit card information, or cover shipping and taxes. You might even be directed to make payment on a website that almost appears genuine, right down to the logos, fonts, colour palette, etc. Not to overgeneralize, but seniors who do not have as much as experience with technology as other generations, or whose hearing/vision may be impaired, making it easier to miss telltale clues of impersonation, may be at greater risk of falling victim to these tactics.

Intimidation

Fraudsters may start off being polite in hopes of “sweet talking” their target, but turn nastier if they don’t get the desired results. Or they may skip the civility and go straight to intimidation. For many scams, often-used fear tactics may involve the threat of significant financial penalty, the threat of imprisonment, or the threat of deportation. Depending on circumstances, one or more of these threats may resonate with the victim and scare them into taking action. Other intimidation tactics include threatening to cut off utilities like heat or hydro, exposing sensitive or embarrassing information to the victim’s entire network of contacts, pressuring the victim to act immediately before they can think or consult with family/friends, or causing harm to the victim’s loved ones. Again, anyone may fall prey to this type of intimidation, but unfortunately the elderly are often more prone to it.

Other forms of elder financial abuse

Even family members and other trusted individuals can take advantage of seniors. For example, someone close to the victim may concoct a story where they need money or else they could face some kind of negative consequence. Another possible avenue for elder abuse involves Power of attorney (PoA). A PoA gives someone the legal right to act on behalf of another, but misusing a PoA may lead to property or assets being transferred from the senior’s control and into the abuser’s hands. An elderly person could also be forced or tricked into amending their will or changing beneficiary designations. They could be pressured into selling their home or other property – even if it’s not in their best interests – so the abuser can benefit.

How can you help?

Elder financial abuse is becoming more and more common. You can help elderly loved ones by showing them how to recognize or avoid common scams. Use clear examples and ask how they might respond to certain fraudulent tactics, so you may help them. Keep an eye on the seniors in your life and encourage them to broach financial topics if they (or you) suspect something might be amiss. Using direct deposit and automatic payment programs could help safeguard them from theft or other misuse of their money.

If they’re showing signs of cognitive impairment (e.g., dementia), ensure they have an updated will, power of attorney, trading authority for investment accounts, etc., to preserve their wishes and help protect them from fraud or financial abuse. Some seniors may feel ashamed if they’ve been a victim to a financial scam, so they could be reluctant to act. Encourage them to contact a trusted relative/friend or the police if they’ve been scammed, since prompt action could help them recover assets taken as a result of a scam. By acting decisively and with compassion, we can help keep elderly loved ones from being financially abused.