Fraud has soared during the pandemic, and retirees — especially those 70 and older — have paid the steepest price.
The median loss was $9,000 compared with $750 for the youngest age group, those 18 to 29, according to the Federal Trade Commission. Romance scams alone spiked for every age group in 2021, according to the most recent Consumer Sentinel data from the Federal Trade Commission.
“Romance scams are at an all time high,” says Deborah Royster, assistant director, Office for Older Americans with the Consumer Financial Protection Bureau. Overall, fraud of various types affects “many, many older adults causing substantial financial harm,” she says. “It can be catastrophic. We’ve seen a rise during the pandemic.”
Various types of scams ranging from identity theft and impostor fraud to tech support and grandparent scams are increasing but those who work with older adults point to romance scams as a major problem. “They are the highest dollar losses for older adults,” Royster says.
The intensified isolation during the pandemic exacerbated the situation. “Social isolation is a factor in some types of frauds and scams,” she says. “During the pandemic, (older adults) are more apt to answer” the phone.
Fraud by telephone contact was the method for 36% of fraud reports to the FTC when the contact method was identified. Online ads or pop-ups were just 2% of fraud reports but of those reports, 68% reported dollars lost. Fraud by email was…
