New Jersey’s aging population makes elder fraud a pressing issue. By 2025, nearly 18% of the state’s residents will be 65 or older, a 31% increase since 2010. More seniors mean more potential targets for fraudsters.
And the numbers are alarming. A June 14, 2024, FBI press release revealed that elder fraud losses hit $1.6 billion in just the first five months of the year—a $300 million jump from the same period in 2023. Total reported losses for 2023? A staggering $3.4 billion.
Why are seniors prime targets? Scammers exploit their savings, property ownership, and good credit. Many older adults are naturally trusting and may hesitate to report fraud due to embarrassment or confusion over where to turn.
Top Elder Fraud Scams
According to the FBI press release, the most common scams targeting seniors include:
- Romance & Confidence Scams – Fake online relationships that drain victims’ bank accounts.
- Investment Scams – Get-rich-quick schemes that lead to financial disaster.
- Tech Support & Government Impersonation Scams – Fraudsters posing as officials or relatives, pressuring victims to hand over money or sensitive data.
One particularly worrying trend? Crypto investment scams. Between 2021 and 2023, elder fraud cases involving cryptocurrency jumped 209%, with financial losses skyrocketing 419%.
The Growing Role of AI in Elder Fraud
A new and alarming fraud tactic involves artificial intelligence (AI), particularly voice cloning technology, which scammers use to impersonate trusted individuals. According to the American Bar Association (ABA), scammers are leveraging AI-generated deepfake voices to mimic family members, authority figures, and even celebrities to trick seniors into giving away money or sensitive information (ABA, 2024).
AI-driven fraud can be especially convincing, as scammers use publicly available recordings—such as social media videos or phone calls—to replicate voices with frightening accuracy. Notable incidents include grandparents receiving calls from supposed loved ones claiming to be in distress, often requesting urgent financial help. In some cases, victims have lost thousands of dollars before realizing the deception.
How to Safeguard Senior Finances
- Keep a Watchful Eye on Finances
A little oversight can go a long way:
- Monitor bank accounts regularly for unusual transactions.
- Help with bill payments to prevent exploitation by shady collectors.
- Set Up Legal Protections
Legal tools provide an added layer of security:
- Power of Attorney (POA): Grants a trusted individual the authority to manage finances if needed.
- Trusts: Protect assets while ensuring funds are used as intended.
- Educate Seniors on AI-Driven Scams
Knowledge is power! Help your loved one avoid AI scams with these simple steps:
- Verify suspicious calls. If a family member calls needing urgent financial help, hang up and call them back on a known number.
- Use a secret code word. Set up a password with family members to confirm identities in emergencies.
- Be skeptical of urgency. Scammers use pressure tactics to cloud judgment.
- Report scams immediately. Contact financial institutions and law enforcement at IC3.gov.
How a Lawyer Can Help
An elder law attorney can be a powerful ally in financial protection. They can:
- Draft POAs, trusts, and wills to ensure legal security.
- Develop strategies to safeguard assets from fraudsters.
- Work with financial institutions to detect red flags early.
- Assist in guardianship cases to prevent exploitation.
Red Flags: Is Your Loved One a Fraud Target?
Look out for these warning signs:
- Unexplained bank withdrawals or transfers.
- Sudden changes in spending habits.
- Missing financial statements or bills.
- Reluctance to discuss money matters.
- A new “friend” who seems overly involved in their finances.
Take Action Now
Protecting your loved one’s finances starts with vigilance, communication, and smart legal planning. If you suspect fraud, report it immediately to local authorities or file a complaint at IC3.gov.
For personalized legal advice, consult an elder law attorney to craft a rock-solid financial protection plan. Staying informed today means peace of mind for your loved one tomorrow. Let’s keep their golden years scam-free!