Older people scammed out of as much as R51 billion annually – study reveals

A study done by Consumer Affairs has found that older people are conned out of as much as $3 billion (just over R51 billion) annually, and that seniors successfully targeted by a fraudster lose an average of $34,200 (just over R591,000).

The study revealed that older people are more vulnerable to scams as they lose the ability to differentiate between manipulation and genuine communication.

“There have been numerous studies that have pointed to how cognitive impairments in older people open the door to cybercriminals who take advantage of these gaps and these people,” said Anna Collard, SVP Content Strategy and Evangelist at KnowBe4 Africa.

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“This is why the fraudulent message, call or email that pretends to be from a struggling grandchild is so popular and successful. Older people may not notice the shifty email address or dodgy phone number, or they may assume that their grandchild has simply changed their email or phone number. They then respond to the request and lose their funds.”

Lonely older adults are most vulnerable to scams and the grandparent scam, where the victim receives a fake call about a grandchild needing financial help urgently.

According to Collard, the scams worsened during the Covid-19 pandemic, when many people were isolated for a long time.

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“Scammers are polite, charming and friendly, that’s how they get your attention and win your trust,” said Collard.

“It is this warmth and kindness that lures people in. Anyone hearing someone being overly nice will be wary of their intentions, whereas someone isolated and lonely may appreciate it and fall prey to the scam.”

Education is key

While anyone can fall prey to these scams, Collard has urged younger people to help older people recognise scams with consistent education and awareness.

“Show them how intelligent scammers are and the vast size of the industry – there are call centres dedicated to calling people just to scam them, it’s not just older people at risk. Everyone is. The challenge is to help people recognise the risk and to bypass it effectively,” urged Collard.