As technology progresses, it’s changing how we live and communicate. But, this also offers more opportunities for fraudsters, particularly targeting seniors.

Fraud can come in various forms, whether it’s a phone call from someone pretending to be a grandchild or personal data being quietly collected by smart home devices. The tactics are changing, and so is the nature of elder fraud.

Staying informed is one of the best defenses against these scams. In 2023, Americans aged 60 and older reported losses exceeding $3.4 billion due to fraud, according to the FBI, and these numbers just keep climbing.

“Criminals are very clever and play on people’s emotions,” says Jeff Taylor, who directs commercial fraud forensic medicine at a regional bank. “We want to make sure people recognize these risks and take simple yet effective steps to avoid becoming victims.”

Five Warning Signs of Fraud

Spotting early signs of fraud may help in preventing both emotional disappointment and financial loss. Here are five warning signs to be mindful of:

1. Unexpected communications: Be cautious of unsolicited calls, emails, or social media messages. Scammers often pose as government officials or even family members. If it’s out of the blue, think twice before sharing any personal information.
2. Pressure to make quick decisions: Scammers frequently create a false sense of urgency. They might say a loved one is in danger and urge you to act fast. “If someone is pressuring you to do something quickly, that’s a red flag,” says Taylor. “Always take a moment to verify before proceeding.”
3. Unusual payment requests: Be wary if someone asks for payments via wire transfer, gift cards, or cryptocurrency. Such methods are hard to trace and even harder to recover.
4. Requests for sensitive information: Authentic organizations won’t request sensitive info, like Social Security numbers or bank details, through unsolicited communication. If someone does, delete the correspondence.
5. Too-good-to-be-true promises: Whether it’s a sweepstakes you didn’t enter or an investment opportunity that seems perfect, if it sounds amazing, it likely is.

Taylor urges everyone to discuss these matters with their loved ones before taking any action.

Hidden Risks from Smart Devices

While phishing emails and scam calls are still prevalent, elder scams are finding their way into homes through smart technology. Devices such as virtual assistants and smart TVs may make life easier, but they also gather data about routines and preferences.

This expanding network of gadgets is referred to as the Internet of Things (IoT). The FBI reminds us to be aware of the security risks they pose, particularly for seniors who might not realize these devices are gathering or sharing information.

Here are some straightforward tips from the FBI to help safeguard your data:

• Change default usernames and passwords. Many smart devices come with easily discoverable credentials online. Set a strong and unique password for each.
• Keep software current. Just like computers, smart devices require regular updates to fix security vulnerabilities.
• Secure your Wi-Fi network. Use strong encryption, like WPA3, and avoid using the same password across multiple accounts.
• Understand what your device is doing. Review privacy settings, read privacy policies, and disable unnecessary features. You might find it’s collecting or transmitting data without your knowledge.

“We often bring these technologies into our homes for the sake of convenience,” says Taylor.

Be Cautious and Stay Safe

Fraud can arise through various forms of communication, be it a phone call or smart speaker. It can affect anyone.

The good news is that you don’t need to be a tech expert to protect yourself. Just having the right information, asking questions, and knowing when to hesitate can be enough.

Engage your older family members in conversations about common scams. Monitor financial activities and ensure that your smart devices at home are secure. And if something feels off, take a moment to think before acting.

If you think you may have encountered fraud, report it immediately to your local law enforcement or the FBI Internet Crime Complaint Center.