TOOLKIT SERIES  

FINANCIAL FRAUD: THE BASICS

• The direct cost of financial fraud is upwards of $50 billion a year.
• Fraud schemes are prevalent and diverse, and scams target consumers through many different channels including online, by telephone and by mail.
• There is no typical fraud victim profile: Different people fall for different types of scams.
• Often hard to identify, fraudsters use the same persuasion tactics used in the legitimate consumer marketplace to deceive their victims.
• Fraud schemes are complex crimes to investigate. Many perpetrators operate overseas and use various methods to transfer and hide the money they get from their victims.

AVOIDING FRAUD 101: DEFAULT BEHAVIORS TO AVOID FRAUD

• The internet is the most popular platform fraudsters use to exploit their targets, but many still prefer to reach potential marks using traditional channels like postal mail, telemarketing and door-to-door solicitations.
• Older adults are particularly at risk for engaging with these fraudulent solicitation methods because they’re more likely to be at home if a telemarketer calls or someone comes to the door.
• The best strategy to avoid fraud altogether is to resist the interaction entirely, before the fraudster has a chance to use persuasion tactics like the ones outlined in the toolkit brief “Tricks Fraudsters Use to Fool the Elderly.”

 AVOIDING FRAUD 101: CYBER SAFETY TIPS TO AVOID SCAMS

• The internet has revolutionized the way we communicate with each other, seek information and purchase goods and services.
• While it’s easier than ever to connect with those around us, financial predators exploit our reliance on the internet by impersonating the people and websites we trust.
• The goal of these scammers is to fool us into giving them money or divulging our personal information in an anonymous space.

TRICKS FRAUDSTERS USE TO FOOL THE ELDERLY

• Financial fraud is ubiquitous in the consumer marketplace, and no one is immune to solicitations from fraudsters.
• Older adults are particularly targeted because they are believed to be more trusting, be socially isolated and have more assets to exploit.
• Regardless of the exact fraud type, fraudsters tend to rely on very common persuasion tactics to convince their targets to comply.
• Learning to recognize these persuasion tactics will go a long way toward preventing fraud victimization.