The increase in the use of social media platforms such as Facebook by older adults has helped to reduce loneliness and isolation for some but has also given elder fraud perpetrators yet another way to reach older adults in order to steal from them. A Pew Research Center survey in January and February of 2019 showed that 40 percent of baby boomers used social media in 2012 with an increase to 59 percent by early 2019.1 Baby boomers (those born between 1946 and 1964) had not begun to turn 65 years of age at the time of the 2010 census, but since then they have been turning 65 at the rate of approximately 10,000 per day.2 With this increase in older Americans, and with more of them using the internet and social media sites, the elder fraud victim pool has increased greatly in size over the past few years, enabling cyber criminals to drain the savings of persons who are often isolated or lonely.
Cybercriminals Targeting Elders
While they often have accomplices in the United States, many of these perpetrators are working their scams from another country, making this type of elder fraud more difficult to investigate. There are many types of elder fraud scams that are used by these transnational criminals. Romance scams and other imposter scams are some of the ones that are costing older adults the most in financial losses and grief.3 These elder fraud perpetrators generally use the internet or phone to contact and gain access to their victims, often finding their targets on senior dating sites or other social media sites. For some scams such as lottery, grandparent scams, and some imposter scams, the fraud begins at first contact with the potential victim, while romance and investment scams usually begin slowly as the perpetrator works to gain the victim’s trust. Lottery scams have been prevalent for many years. They are often successful because the victim believes that the money they are being asked to send to the scammer for taxes or fees is a small price to pay in order to receive the large amount of money they think they have won. Grandparent scams and other family emergency scams prey on the older adult’s love and concern for their grandchild or other family member. They are willing to pay sometimes large amounts of money to get their relative out of the trouble the scammer has convinced the victim their family member is in. Criminals also use a variety of imposter scams in which they convince the victim they are from a government agency such as the IRS, the court, law enforcement, or a host of other types of agencies. In imposter scams, the perpetrator convinces the victim that they will be in major trouble if they don’t immediately send an amount of money to rectify the situation.
In many transnational romance scams, the perpetrator spends weeks or even months communicating with the victim before asking them to send money. During this grooming period, the perpetrator often explains why it is impossible for them to meet with the victim in person. Some claim to be working temporarily outside the United States and some sort of financial problem has tied up all their money and unless they borrow money from the victim, they will not be able to return home and begin the life together. To continue to hide the perpetrator’s true identity or location, they will often have the victim send or wire the money to an associate in the United States who will then send it on to the perpetrator. These associates are called money mules and are sometimes unaware that they are playing a role in a transnational fraud. Sometimes the money mule is also being scammed by the perpetrator through a similar, or some other type of fraud scheme. However, some money mules know of their involvement with the criminal activity and are working with the transnational criminal for a share of the stolen money.4 The different jurisdictions between the perpetrator, money mule, and victim can make these transnational frauds very challenging to investigate and prosecute. This is often made more difficult by the victim’s resistance to believe that they are being scammed.
This is a difficult problem, but a number of steps have been taken to begin solving it. It is obvious that education and awareness is important to reduce the number of victims, and while that education is ongoing, these criminals are relentless.
Cyber-Investigations into Elder Fraud
In June 2020, former U.S. Attorney General William Barr stated in a press release, “Fraud against the elderly is on the rise. One of the most significant and pernicious cause for this increase is foreign-based fraud schemes.”5 In an attempt to remedy the situation, six Transnational Elder Fraud Strike Force districts based on U.S. Attorney districts were created to encourage collaboration among state and local law enforcement, the U.S. Department of Justice’s Consumer Protection Branch, federal U.S. Attorney districts, the FBI, and the U.S. Postal Service. The initial six Transnational Elder Fraud Strike Force districts include the Central District of California, the Middle and Southern Districts of Florida, the Northern District of Georgia, the Eastern District of New York, and the Southern District of Texas. The Federal Bureau of Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations also provide dedicated resources for identifying the most harmful elder fraud schemes and bringing perpetrators to justice. Special agents from the Internal Revenue Service, U.S. Secret Service, Defense Criminal Investigative Service, Social Security Administration Office of Inspector General, and Treasury Inspector General for Tax Administration also conduct strike force investigations.6 There is also an attorney in each U.S. Attorney’s office throughout the United States designated as the Elder Justice Coordinator for that federal district whose job is to provide assistance in the way of prosecutions as well as outreach and awareness related to elder abuse.7
This collaboration is necessary because often the first responder to an elder fraud situation is a local law enforcement officer, but—in order to follow the money for this type of financial crime case—national and often international resources and connections are required. These cases also require expertise in cybercrime techniques and digital evidence in order to follow the digital footprints the criminal is trying hard not to leave behind. Law enforcement collaboration on various levels is not the only type of collaboration needed in these elder fraud cases. In order for the victim to receive the help they need, personnel from other types of agencies will likely need to get involved. While the possibility of getting the victim’s stolen money back is unlikely, other services may be very important to address the victim’s trauma. It is likely that local law enforcement or an Adult Protective Service worker will be the first to become aware of a potential elder fraud situation. As they pursue the case, it is likely that assistance from additional professionals will be required in order to deal with the investigation, as well as to ensure the best possible outcome for the victim. An elder abuse multidisciplinary team (MDT) at the local level is ideal to discuss the individual situation and make recommendations, not only on the best ways forward for law enforcement, but also as to necessary referrals to address the safety and wellbeing of the victim. MDTs are typically made up of a variety of professionals from law enforcement, victim services, healthcare, and others. By working together, the MDT can help move the case forward while also addressing the specific needs of the victim. The Elder Justice Initiative’s Elder Justice Network Locator Map identifies many of the MDTs and other types of networks that exist throughout the United States. Elder abuse MDTs will continue to evolve as more communities utilize the model and gain experience with them. The Office for Victims of Crime (OVC), which is part of the U.S. Office of Justice Programs (OJP), is providing funding and support to many MDTs as well as training and technical assistance through the National Elder Abuse MDT Training and Technical Assistance Center.8
Case Stories
Sometimes there is good news in the fight against transnational elder fraud. Such was the case in September 2021 when 24 individuals in Texas were indicted for allegedly using a multitude of fraudulent schemes, including romance scams, investment fraud, and other frauds to steal roughly $17 million from over 100 victims over a number of years. These defendants were alleged to have specifically targeted older adults they found on online dating sites. The indictment also accuses the defendants of laundering the money they received by sending it through a network of bank accounts and to co-conspirators in Africa and Asia. The case had not gone to court at the time of this writing, so these defendants are presumed innocent until proven guilty, but if proven guilty they could receive up to 20 years in federal prison for these crimes. This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office; Homeland Security Investigations; the Internal Revenue Service’s Criminal Investigation agency; the Department of Labor’s Office of Inspector General; the U.S. Department of State’s Diplomatic Security Service (DSS); U.S. Postal Inspection Service; U.S. Citizenship and Immigration Service; Allen, Texas, Police Department; Denton, Texas, Police Department; Dallas County, Texas, Sheriff’s Office; and Texas Department of Public Safety.9 This case is a good example of the collaboration required in these types of situations.
Another transnational elder fraud success that took place in Texas caused the small Colleyville police department to be awarded the 2021 IACP Leadership in the Prevention of Transnational Crime Award. The Colleyville department began an investigation from a local victim that led to romance and lottery scams involving elderly victims throughout the United States. In partnership with the Colleyville Police Department, teamwork provided by U.S. Secret Service and investigators from Tarrant County, Texas, Criminal District Attorney’s Office identified a West African fraud ring with connections to Nigerian organized crime syndicates with a number of suspects who stole over $4 million from their victims.10
Available Resources
Also, OVC funded the Training for Law Enforcement to Improve Identification of and Response to Elder Fraud Victims project in 2020. The award went to the National White Collar Crime Center (NW3C) and the International Association of Chiefs of Police (IACP) to collaborate to create and deliver training for state and local law enforcement to make them better prepared to deal with transnational elder fraud investigations, while also providing victims with important resources to help them recover from these types of transnational crimes.
“Fraud against the elderly is on the rise.”
The intent of this training had been to provide a one-day training for state and local law enforcement in two of the Transnational Elder Fraud Strike Force districts, (the Middle district of Florida and the Northern District of Georgia). Then once the training had been tested and revised as needed, it would be made available to law enforcement agencies throughout the United States, encouraging collaboration between various levels of law enforcement and explaining the benefits of working with an MDT in these kinds of situations.
Originally these one-day training classes were intended to be in-person in training facilities across the United States, but the continuation of the COVID-19 pandemic has caused the trainings, at least for the coming months, to be held virtually through NW3C’s remote classroom platform.
In order to develop this training, NW3C and IACP initially focused on surveying state and local law enforcement personnel in two of the Transnational Elder Fraud Strike Force districts to find out what challenges they encounter related to these types of crimes, as well as what sort of investigative resources are available to them. The survey also asked what sort of resources they are aware of that can be recommended to the victims they encounter to help them recover from these types of crimes. The development team then assembled an advisory group made up of a variety of experienced professionals who deal with transnational elder fraud, and with the help of these subject matter experts and the survey results, the Responding to Transnational Elder Fraud: A Victim-Centered Approach for Law Enforcement training was developed and will be available soon to law enforcement personnel.
Reporting Cybercrimes
Reporting these types of crimes to the FBI Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC) is an important step to help reduce financial fraud by increasing the amount of information that is known about these crimes and criminals. Early reporting also increases, in some cases, the chance of recovering the victim’s funds. The U.S. Department of Justice’s National Elder Fraud Hotline, which is managed by the Office for Victims of Crime, is available to provide services to all adults ages 60 and older who may be victims of elder fraud. The experienced staff will assess the needs and provide guidance and support resources to the victim, including when appropriate, assisting with the completion of the complaint forms for IC3 and FTC. 11
Notes:
1Pew Research Center, “Millennials Lead on Some Technology Adoption Measures, but Boomers and Gen Xers Are Also Heavy Adopters,” line graph, September 6, 2019.
2 “2020 Census Will Help Policymakers Prepare for the Incoming Wave of Aging Boomers,” America Counts, December 10, 2019.
3Internet Crime Complaint Center (IC3), 2020 Elder Fraud Report (Federal Bureau of Investigation, 2021).
4U.S. Department of Justice (DOJ), “U.S. Law Enforcement Targets Fraud Facilitators, Doubling Last Year’s Enforcement,” news release, December 3, 2021.
5DOJ, “Justice Department Announces New Transnational Elder Fraud Strike Force,” news release, June 13, 2019.
6DOJ, “Justice Department Announces New Transnational Elder Fraud Strike Force.”
7Consumer Financial Protection Bureau (CFPB), “Prosecutors.”
8The Office for Victims of Crime (OVC), “National Elder Abuse MDT Training and Technical Assistance Center,” September 21,2021.
9DOJ, U.S. Attorney’s Office, Eastern District of Texas, “EDTX Indicts Two Dozen Defendants in International Multi-Scheme Fraud Conspiracy,” news release, September 24, 2021.
10Anna Caplan, “Colleyville Police’s Investigations on Sex Trafficking, Elder-Fraud Rings Merit International Awards: The International Association of Chiefs of Police (IACP) Honored the Department for Solving Two High-Profile Cases,” The Dallas Morning News, August 5, 2021.
11OVC, “National Elder Fraud Hotline: About the Hotline,” March 18, 2021.
Please cite as
James Foley, “The Growing Problem of Transnational Elder Fraud,” Police Chief Online, March 2, 2022.
