How data brokers fuel fraud among older adults in America

Elder fraud is a growing problem in the United States, with criminals increasingly targeting people over the age of 60. Increasingly, data brokers are recognized as a favorite tool of criminals, providing access to personal data that criminals use to improve their scams.

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Economic losses caused by fraud are increasing every year

Using FBI data for calendar year 2023, researchers found that economic losses from fraud continue to increase. In addition to financial losses increasing over time, fraud complaints have increased for the first time in 2020. In 2023 alone, Americans over the age of 60 lost over $3.4 billion to fraud. They reported over 101,000 fraud cases, a 14.5% increase from the 88,000 reports filed in 2022.

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States where fraudsters stole the most

Hawaii residents over the age of 60 lost the most money to fraudsters of all 50 states, with over 453 complaints filed and a total loss of $28 million, meaning the average amount lost to fraud was $61,000. While Hawaiians have been hit the hardest, that’s due to the state’s smaller population. When we look at a high-population state like California, we see that over 11,000 complaints were filed, equating to a financial loss of $643 million.

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What types of fraud are most common?

Tech support scams were the most common in 2023. An example of these scams are the pesky phone calls you may receive telling you that your iCloud account has been compromised. More than 17,000 tech support scams were reported in 2023, almost the same number as in 2022. Personal data breaches are behind tech support scams, with 7,800 reports reported in 2023.

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How do data brokers contribute to fraud?

Researchers found that elder abuse scams were made possible by the availability of personal information on the Internet. This happens largely thanks to data brokers, i.e. large companies that make money by selling personal data for advertising purposes.

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Additional tips for protecting yourself from elder fraud

As senior fraud continues to increase, it is critical that seniors and their families actively protect their personal information and recognize potential fraud. Here are some additional practical strategies to help mitigate your risk.

1) Monitor your financial accounts regularly: Set up alerts for any unusual activity on your bank and credit card accounts. Review your statements every month and consider using financial management apps that can help you track your expenses and spot anomalies.

2) Use strong, unique passwords: Create complex passwords consisting of letters, numbers and symbols. Avoid providing information that is easy to guess, such as your birthday. Consider using a password manager to generate and store complex passwords.

3) Enable two-factor authentication: Two-factor authentication adds an additional layer of security by requiring a second form of verification.

4) Limit sharing of personal data: Be careful with information shared online and over the phone. Scammers often use social media to gather detailed information about potential victims. Adjust your privacy settings on your social media accounts to limit who can see your information.

5) Check before you trust: Always check the identity of anyone asking for personal or financial information. Please use official contact numbers to confirm the validity of your request.

6) Be skeptical of unwanted calls, emails and messages: Never click on links or download attachments from unknown or suspicious sources as they may contain malware or phishing attempts. The best way to protect yourself from malicious links installing malware and potentially accessing your private information is to install antivirus software on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal data and digital assets safe.

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7) Report suspicious activity: If you suspect fraud, report it to local authorities or organizations such as the Federal Trade Commission (FTC). Reporting early can help prevent others from falling victim to the same scam.

8) Stay connected with family and friends: Regular communication with loved ones can help reduce the feeling of isolation that scammers often exploit. Encourage seniors to remain socially active through community groups, clubs or regular family gatherings. Also be sure to check out 5 Ways Technology Can Help You Feel Less Alone.

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Kurt’s key takeaways

Data brokers and the whole system of selling personal data for advertising money have contributed to the increase in fraud against all people over the last few decades. Older Americans, especially those aged 60 and older, are more likely to be victims due to their lack of technological knowledge and higher incomes. Please be careful when giving out your personal information online. We recommend finding a service that will help you track and remove them from the Internet.

Have you noticed a recent increase in fraud attempts targeting you or older relatives? How have tactics changed? Let us know in the comments below.

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