The silver generation, as they’re often called, faces a unique set of challenges in today’s fast-paced, ever-changing, tech-driven world.
With the rapid growth of Artificial Intelligence (AI), the challenges have become even greater. While AI advancements like online banking, cashless transfers, and immediate customer support through chat offer great convenience, they also open doors to a dark side: financial exploitation or fraud enabled by AI‑driven tools.
First, what is financial exploitation and fraud? Financial exploitation and fraud occur when someone acts in an illegal and unauthorized manner to use someone else’s resources for monetary gain and/or deprives someone of their rightful access to their own assets. This can be creating fraudulent money transfers, setting up a fictitious charity to receive donations, changing legal documents (home ownership or estate plans), etc. Exploitation usually involves someone the victim knows, such as a family member or caregiver. Fraud usually is committed by a stranger to the victim.
Financial exploitation and fraud have recently been identified as the “crime of the 21st century” and the most common forms of elder abuse, often going unrecognized or unreported. Perpetrators are specifically targeting older Americans because of their health and wealth demographics, as well as their perceived and actual vulnerabilities such as cognitive decline and unfamiliarity with constantly changing technology.
The use of technology in financial exploitation and fraud is not new. However, the recent advances in AI technology and tools now make it easier than ever for criminals to prey on vulnerable people while making it much harder to identify and stop.
New and Emerging AI‑Enabled Risks for Older Adults
Real‑Time Deepfake Video Calls:
Scammers can now appear on a live video call looking and sounding like a family member, caregiver, or even a financial professional. Older adults who rely on video calls to stay connected may be especially vulnerable. If someone asks for money or personal information during a video call, end the call and contact the person using a known phone number.
AI‑Generated “Official” Documents:
Fraudsters are using AI to create highly realistic bank statements, transfer forms, invoices, and even estate‑related documents. These can be difficult for anyone to spot, but especially for older adults who may not be familiar with newer formats. Always verify unexpected documents directly with the institution before taking action.
Synthetic Identity Fraud:
Criminals can now build entirely fake identities using AI‑generated photos, IDs, and personal details. These synthetic identities may be used to open accounts or attempt to access an older adult’s existing accounts. Unexplained mail, new account notices, or credit alerts can be early warning signs.
AI‑Enhanced Romance and Caregiver Scams:
AI allows scammers to maintain multiple “relationships” at once, sending personalized messages, photos, and even voice notes. Older adults who may be isolated or seeking companionship are particularly vulnerable. Any request for money, gift cards, or financial help from an online relationship should be treated with caution.
AI‑Assisted Account Takeovers:
AI tools can mimic writing style, guess security questions, or imitate customer‑service chat agents. Older adults may be more likely to trust a message that appears helpful or official. When in doubt, call the institution using the number on the back of your card or on their official website.
Examples of AI‑Enabled Fraud Targeting Older Adults
Here’s what financial exploitation and fraud assisted by AI may look like:
- Deepfakes and Identity Theft: Scammers use AI‑powered voice cloning or real‑time video deepfakes to pose as a grandchild, caregiver, or trusted professional. The goal is to create urgency and pressure the victim into sending money or sharing sensitive information.
- AI‑Generated “Official” Documents: Highly realistic bank statements, transfer requests, invoices, or estate‑related documents may be fabricated to look legitimate.
- Personalized “Phishing”: AI analyzes online behavior to craft convincing emails, texts, or social‑media messages tailored to someone’s fears, habits, or financial concerns.
- Automated Fraud Factories: AI‑driven systems can distribute thousands of personalized phishing attempts, manage networks of fake websites, and automate fraudulent transactions at scale.
- Exploiting Cognitive Decline: Fraudsters may use AI‑generated messages or documents designed to confuse, overwhelm, or obscure key details, making it harder for older adults to identify red flags.
But don’t panic! Just like any technology or tool, AI is neutral. We can harness its power for good while staying vigilant against its potential misuse. Here’s how to protect yourself and your loved ones from financial exploitation and fraud:
- Be skeptical of unsolicited contact: Calls, emails, or messages, even from seemingly familiar sources, require caution. Verify their legitimacy before sharing personal or financial information.
- Never rush into financial decisions: Do your research, consult trusted advisors, and avoid pressure tactics. Remember, legitimate opportunities won’t disappear overnight. Urgency is a common warning sign.
- Stay connected and informed: Learn about common scams and how AI is being used in them. Have honest, open conversations with your support network. Share this knowledge with family and friends, especially those more vulnerable.
- Report suspicious activity: If you suspect a scam, report it to the authorities immediately. Your action could save someone from financial harm.
Staying aware of how these scams work can make it easier to recognize potential risks. By staying informed and taking practical precautions, older adults and their families can better navigate new technologies and reduce the likelihood of financial harm.
Visit Modera’s cybersecurity page for more information on how to help protect yourself and those you care about.
