The Expensive Cost of Senior Fraud

Scammers target seniors more than any other age group, and the financial impact on their lives can be devastating. According to a 2023 FBI report on elder fraud, older adults lost an estimated $3 billion to costly scams last year alone.  But what does this look like on an individual level? Let’s break down the expensive senior fraud average cost per scam a senior may face. 

The Average Financial Hit

On average, a senior loses around $9,000 per scam. However, the financial damage can vary widely depending on the type of scam:

• Tech Support Scams: Typically cost seniors anywhere from $200 to $500. Scammers trick victims into thinking their computer or smartphone has a virus, leading them to pay for fake "virus removal" services.

• Romance Scams: These are especially devastating, with victims often losing $10,000 to $100,000. Scammers build emotional connections over time, only to ask for large sums of money to help with "emergencies."

• Investment Scams: Ponzi schemes or "too-good-to-be-true" investments can strip seniors of their life savings, with individual losses averaging $25,000 to $50,000.

• Lottery or Sweepstakes Scams: These often promise victims they've won large sums but need to pay a fee upfront to collect the prize. These scams can cost seniors $500 to $5,000 on average.

Beyond the Numbers: Emotional and Health Costs

While the financial toll is alarming, seniors also face emotional trauma and stress that impacts their mental and physical health. A scam often leads to feelings of embarrassment, guilt, or fear of losing independence. Some may be less willing to report a scam because of these feelings, leading to underreported cases and continued losses.

Why Seniors Are Targeted

Scammers see seniors as ideal targets for several reasons:

• Fixed income: Many seniors live on savings or retirement funds, making them financially vulnerable.

• Lack of familiarity with technology: Many are not as tech-savvy, making it easier for scammers to deceive them.

• Trusting nature: Seniors tend to be more trusting and polite, which scammers exploit.

Protecting Your Loved Ones

To combat this growing issue, it’s crucial to educate seniors and their families about common scams and red flags to look out for. Encourage open discussions, install scam-blocking software, and remind seniors never to share personal or financial information with unverified sources.

For more information on how to protect seniors from these predatory scams, stay tuned to SeniorShield and take advantage of the free scam prevention alerts we provide among additional features to help prevent senior fraud.