Scams Reach Crisis Level, Life Savings At Risk

(IntegrityPress.org) – Scammers are becoming emboldened as the process of committing financial fraud over the telephone or through the internet becomes easier, especially with the advent of artificial intelligence (AI) systems, and law enforcement lacks the resources to trace down every perpetrator.

Every year, Americans lose tens of billions to such scams, often conducted by criminals overseas.

AARP Fraud Watch Network director of fraud prevention Kathy Stokes is sounding the alarm on a situation that has grown “exponentially,” leaving police and prosecutors overwhelmed by the amount of cases pouring in related to online and telephone scams. Stokes said that online and telephone scams have reached “a crisis level in society,” and that many are joining in because of how easy it is “to be a criminal.” Aside from not having to follow rules and the opportunity to make a lot of money, she said there is also “ very little chance” of being caught.

One of the main reasons for this is that the crimes have become so pervasive that local law enforcement lacks the resources to pursue them, and federal agencies very rarely get involved in such cases unless the amount of money involved is substantial. Former FBI agent Brady Finta, who used to supervise elder fraud investigations, said the current situation is “like drinking from a fire hose” because of how many cases come in, and that it’s nearly “impossible to overcome right now.”

These crimes impact seniors the most, and research finds that victims of financial fraud are far less likely to report the crime, often out of embarrassment or fear of not being taken seriously. Paul Greenwood, an attorney who has worked on many elder fraud cases, said that many police departments don’t take financial scams as seriously as other crimes. Greenwood has spent over 20 years working with defendants who fell for these scams and said they are often left discouraged and demoralized by the response.

A study published by AARP in 2023 found that Americans 60 and up lose around $28.3 billion to financial fraud every year. With dwindling law enforcement resources and advancements in AI, that number is only likely to rise.