AI is serving the elderly, but the dark side of AI is targeting the elderly to scam them

Last year, a lawyer from New York lost $468,000 in a romance scam that started with a professional inquiry on LinkedIn. The victim was a man in his 70s who replied to a message from a young and beautiful woman with a professional background and an admirable resume.

Within 75 days, he liquidated his savings.

During that time, he downloaded software that made him believe he was depositing money in a California cryptocurrency bank and made a series of seemingly profitable transactions. None of this happened.

The person he spoke to was in Thailand, the woman did not exist, and the promise of a relationship was fake. The money is gone.

"He never distrusted her. He gave it his all. It ticked all the options for him," said the lawyer's son-in-law, who knew firsthand about the fraud and was allowed to share the account, but declined to be named. "This is not a person without a family. He played golf with friends. He reads the cover of The New York Times every day. This is not a person who lives in a vacuum. Incredibly, with all these safeguards, it still happens. ”

"It's so complicated. These people know very well what to say to separate him from his money. This can happen to anyone," the son-in-law said.

According to Haywood Talcove, CEO of LexisNexis Special Services, AI-driven scams targeting older adults, often in the form of romance scams, extortion calls and fake government collection notices, could cost victims up to $100 billion over the next 18 months

Talcove's company, which provides cybersecurity and investigative products to more than 4,000 law enforcement agencies, estimates that losses due to fraud will surge before targets become more aware of AI's capabilities and scope. And even then, it is difficult to fight.

"All these people are working hard to build this technology, and they're working really, really hard. And you have another group working just as hard to apply their techniques in the bad ways," Talcove said.

"They're talking about the regulation of AI. We think we can control something like AI and not regulate it," Talcove said. "Everyone needs to step up their game. I don't think people realize that this technology is powerful and dangerous. ”

Talcove says the top three scams currently using AI include romance scams, ransomware, and fake requests from the IRS or government agencies saying you owe money.

Using AI to create realistic images, as well as voices that appeal to the target country, fraudsters can "date" someone through video, gain their trust and demand money. Talcove says the catchy video and sound is likely to be someone from another country.

For ransomware attacks, Talcove says, fraudsters can use a three-second clip of someone's voice found on Facebook or YouTube, then copy it and manipulate it into a conversation that sounds real.

"It's hard to tell the difference," Talcove said.

Meanwhile, tools such as ChatGPT, a language processing tool powered by artificial intelligence technology, can be used to write dunning letters claiming to be from governments that don't have obvious spelling and grammatical errors that past fraudsters incarnate.

"It's hard to say," Talcove said. "It takes a while for people to realize something like ChatGPT. It takes a while for people to catch up. ”

"It's not just older people, it's the vast majority of older people," Talcove said. "They're doing it because people are actually giving them cash. It's working. ”

"Don't send money to people you haven't met," Talcove says. He added that fraudsters are "masters of elicit sympathy."

Talcove says that if someone asks you to send money, don't send it.

"Scammers are very good at what they do. They engage in various deformable behaviors. AI hoax — this is a whole new ball game," said Lori Mars, deputy director of the National Center for Elder Abuse.

"Scams don't just affect seniors. They affect everyone. Seniors are definitely the target. The overall concept is that everyone is vulnerable. But as you age, you may develop mild cognitive impairment associated with poor financial decision-making, as well as social isolation and loneliness," Mars said. "It's financially and emotionally devastating. This is very debilitating and takes a toll on the victim. ”

Financial abuse can take different forms, from identity theft, use of debit or credit cards, lottery scams, and romance scams to abuse of power of attorney privileges.

Exact numbers are hard to come by because many elders are reluctant to report their experiences. According to the National Association of Adult Protective Services (NAPSA), only 1 of 44 cases of financial abuse was reported.

NAPSA also noted that older victims of financial abuse were three times more likely to die and four times more likely to be admitted to a nursing home than older victims who were not abused.

Meanwhile, AARP estimates that victims over the age of 60 lose $28.3 billion annually to the economic exploitation of older adults, 72% of which are taken by friends, family members, or caregivers. Strangers make up another $8 billion a year, or 28%.

AARP said that of the estimated $28.3 billion in annual losses, only $7.8 billion of funds stolen were reported to authorities.

"While strangers often rely on quick and irrevocable transactions, such as gift cards or wire transfers, perpetrators who know the victim are more likely to go directly to the victim's bank account. But any form of financial exploitation can wreak havoc on the lives of seniors and their families," said Jilenne Gunther, national director of the AARP's Bank Security Initiative and lead author of the report. "The key to stopping this growing problem is consumer education, frontline worker training, and enhanced technology to flag suspicious activity."

The National Council on Aging on Thursday announced a new partnership with Early Warning Services LLC, Zelle's network operator, to conduct a national event hosted by financial health expert Amanda Clayman to provide guidance on how to avoid falling victim to scams.

"Zelle and the NCOA are helping to bridge the gap between mental health and finances," Kleiman said. "Educating older adults about the social engineering tactics that scammers often use is critical to stopping scammers."

Zelle and NCOA created an informational video featuring Clayman explaining the social engineering tactics scammers use to target older adults. Clayman offers practical tips and red flags for seniors so they can protect themselves.

If you do receive a ransom call, ask what your child's identification marks are – scammers won't know this from a Facebook post. Talcove said families should have a password to verify that the person on the phone or video chat is real.

Also, know that the government doesn't seek payments or owe taxes by phone, email or text message, Talcove said.

Brian McGraw, senior wealth advisor at Hightower Wealth Advisors, said: "There are so many scumbags out there.

"Learn about the types of scams available. The Social Security Administration and the IRS will never ask you for information via text message or email. Immediately knew it was a scam," McGraw said.

One of the best ways to prevent financial abuse is to have family members or lawyers manage or co-manage the accounts of seniors. But all family members should be aware of this decision, as it helps keep the process transparent and prevents one family member from exerting undue influence.

McGraw recommends taking other steps to protect loved ones, such as reducing the number of accounts you have, so you can reduce surveillance. In addition, ask your financial advisor to provide maximum security for your account, such as any funding request requiring a phone confirmation.

Other recommendations from financial advisors, law enforcement, and AARP include:

– Get yourself into the Do Not Call registry or sign up for Nomorobo, which charges a nominal fee to block robocalls and text messages on your phone. Also, opt out of the mail request through DMAChoice.org.

– Have your Social Security check deposited directly into your account instead of an on-site check.

– Do not provide personal information over the phone unless you are calling a number known and verifiable by your bank or credit card company.

– Sign up for identity theft protection services.

– Don't isolate yourself.

– Slow down: Resist pressure and act quickly. The offender urged the victim to act quickly.

– If someone asks you for payment or money, have them make the request in writing. Never do business with anyone who shows up in your home unsolicited. Be skeptical of any unsolicited emails or phone calls.

– Use multiple passwords. Never save passwords in your computer's list.

"Some people get older and their cognitive abilities decline. They may also not be able to keep up with the 24-7 news cycle and be tech-savvy. They may also be more trustworthy and haven't grown up with as many tech tools as they do today," McGraw said.

"If that sounds too good to be true—it probably is. Jamaica Lottery Scam? Come on," McGraw said.