Multiplying Impersonation Scams Among Seniors

The U.S. Federal Trade Commission (FTC) reported a significant increase in financial losses due to impersonation scams targeting older adults over the past four years.

According to the FTC, these scams fall into three primary categories:

• Falsely representing as an organization representative: A fraudster claims there is suspicious activity on the victim’s account.




• Impersonating government officials: The scammer informs the individual that their personal data has been linked to illegal activities like money laundering.




• Mimicking tech company representatives, such as Microsoft or Apple, warning about a device security issue.

The overarching objective is always the same: to initiate a conversation that can be exploited for financial gain. Unfortunately, these tactics are highly effective. The FTC noted an eight-fold increase in total losses among seniors who lost more than $100,000, rising from $55 million to $445 million over four years.

Mimicking Common Communications

Scammers aren’t limiting their targets to the elderly. Many younger consumers have also fallen victim to cybercriminals who impersonate major companies such as Best Buy, Amazon, and PayPal. These criminals not only mimic common communications but use advanced technology that makes them harder to detect.

An example of this is a recent phishing tactic where an email purportedly from PayPal appeared legitimate, complete with a real sender address. However, the “to:” field contained the attacker’s own email address as a hidden red flag.

The PayPal phish-free phishing attack demonstrates how sophisticated cybercriminals have become,” said Suzanne Sando, Senior Fraud and Security Analyst at Javelin Strategy & Research. By closely following advice given to consumers from financial institutions (FIs), fintech companies, and major industry leaders, scammers can bypass the usual red flags that consumers typically look for in transaction requests.”

Consumers are often the first line of defense against scams. When everything seems legitimate, it’s easy to proceed with a transaction without questioning its authenticity,” Sando further explained.

Personalized Fraud Tactics

To maximize their impact, cybercriminals tailor their messages and communication methods specifically for different age groups. For younger users, social media platforms like WhatsApp are widely used to reach targets. WhatsApp deleted 6.8 million scam-related accounts on its platform, including fake investment opportunities and offers of cash in exchange for likes.

Since seniors tend to be less familiar with social media, phone calls remain the most common method for targeting them.

The crafted messages often include a sense of urgency or mention potential danger to a loved one. This approach can easily convince older individuals that immediate compliance is necessary, leading to financial losses.

Seniors are particularly vulnerable due to the socially engineered techniques used by cybercriminals,” said Tracy Kitten Goldberg, Director of Fraud and Security at Javelin Strategy & Research. A sense of urgency combined with threatening rhetoric can make victims feel cornered.”

Protecting Against Scams

The increasing threat against seniors has spurred organizations to take action. Nacha’s Payments Innovation Alliance recently introduced tools aimed at helping vulnerable consumers and raising awareness about elder fraud, including a checklist for banks assisting those who may have been scammed.

The FTC also issued guidance for older adults, warning them not to move money or act on any requests from unknown parties. Seniors are advised to immediately stop all conversations with unverified individuals and verify the legitimacy of the caller.

Additionally, leveraging call-blocking technology can reduce the risk of contact with criminals.