Canada: Why are senior scams increasing despite awareness?

With technology evolving rapidly, the amount of fraud against seniors is increasing at an alarming rate. Fraud is now the leading crime committed against seniors in Canada.

Today’s scammers are taking advantage of new technological tools that make their schemes both more credible, and harder to detect. From fraudulent phone calls using voice simulation systems, to sophisticated online hustling, scams are becoming increasingly complex. Despite alerts and warnings, fraud continues to flourish in the age of technology.

As an expert in the field of technological fraud, I will try to provide some answers to the following question: Why is fraud against seniors on the rise when it is so highly publicised? And how can seniors protect themselves?

Exploiting technological vulnerability

While fraud affects different segments of the population, some specifically targets seniors because of their vulnerability. For example, grandparent fraud, where a fraudster pretends to be a loved one in difficulty, exploits seniors’ trust and encourages them to send money in a hurry. The Canadian Anti-Fraud Centre (CAFC) has identified 2,494 victims of these schemes, for a total loss of $9.4 million.

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Romance scam is another common trap. These fraudsters establish an online relationship over an extended period in order to extract money from victims under the pretext of being in financial difficulty, or experiencing a personal emergency. This type of fraud has intensified with modern technology. In 2023 it was responsible for the third-largest financial loss to Canadians, according to the Royal Canadian Mounted Police. In 2022, Canadians lost more than $59 million to this type of fraud, according to CAFC.

Exploiting through fictitious identities

Fraudsters also use dating platforms and social networks to create convincing profiles of fictitious identities using stolen photos. Artificial intelligence and image manipulation software are then employed to make these scams all the more realistic, boosting victims’ confidence and making fraud harder to detect.

Recent warnings have been issued to alert the Canadian public to romance scams where scammers manipulate their victims into investing in fraudulent cryptocurrencies.

Phishing, which has also become more sophisticated thanks to new technologies, is another common fraud technique used against seniors, with the CAFC listing losses for Canadians at around $58 million in 2022.

Scammers send e-mails or text messages pretending to be companies or financial institutions and prompt recipients to click on fraudulent links, or divulge personal information. Artificial intelligence and automated systems allow fraudsters to target victims on a massive scale and create a sense of urgency that pushes seniors to act without thinking twice.

Why elder fraud is on the rise

Fraud targeting seniors is on the rise for a number of reasons. Because seniors often have more free time and are more socially isolated, they are more inclined to respond to calls, e-mails or text messages from strangers. Their solitude also makes fraudulent interactions more credible, while their accessible savings make them attractive targets.

Although many seniors use the internet, a large majority are not comfortable with technology. This makes them more vulnerable to online scams. According to one study, while 67 per cent of seniors surf the internet regularly, only 26 per cent feel very confident using computers and smartphones.

Seniors continue to fall into these traps despite numerous awareness campaigns, since fraudsters skilfully exploit seniors’ lack of familiarity with digital technologies and constantly adapt their methods to circumvent warnings. What’s more, the emotional impact of a well-crafted scam can override caution, making warnings less effective in these situations.

How to protect seniors from fraud

To protect themselves from fraud, there are a number of essential behaviours seniors must adopt. They should never share personal information, such as PINs or passwords, by telephone, e-mail or text message. It’s also important not to respond to any unsolicited offers whether they are received by e-mail, text or telephone.

If a specific case requires action, it’s best to type the financial institution’s web address, rather than click on a link provided. Seniors should never make hasty decisions. If a child or grandchild claims to be in an emergency and is asking for financial assistance, seniors should ask them personal questions to verify their identity. Finally, trusting one’s intuition remains essential: if something seems suspicious, it’s best to heed your gut and take extra precautions.

At a time when technology is advancing rapidly, fraudsters have never been better equipped to target the elderly. Although seniors are increasingly connected, being less familiar with digital tools makes them all the more vulnerable. Scams — whether romantic scams, phishing or telephone fraud — exploit their trust and isolation. Because of this threat, it’s crucial to inform and educate seniors so they can protect themselves against these increasingly sophisticated scams.

What is the solution

But prevention is not enough: collective awareness is also necessary. By supporting our seniors, we can help reduce fraud and better protect this vulnerable population. Collective awareness means making sure the community is committed to monitoring, alerting and protecting those who are most at risk.

This can be achieved through concrete actions carried out on a regular basis to raise awareness among seniors, but also by encouraging seniors’ loved ones to be alert to signs of potential fraud.

It would also be a good idea to involve local players, such as financial institutions or community centres, to offer ongoing training and reminders about common frauds.

In the long run, it is only by combining prevention, education and solidarity that we will be able to truly limit the impact of this fraud, and offer seniors the protection they deserve in an increasingly digital world.

Annie Lecompte, associate professor, Département des sciences comptables, Université du Québec à Montréal (UQAM)

This article is republished from The Conversation under a Creative Commons license. Read the original article.