Elder Fraud and AI: When Scammers Sound Like Family

What is Elder Fraud?

Elder fraud is a type of financial exploitation that targets older adults through deceptive financial schemes. These scams often exploit seniors’ vulnerabilities, such as trust in others, social isolation, or limited knowledge of modern technology. But whether it’s a fake tech support rep or a too-good-to-be-true romantic suitor, the goal is always the same: exploit trust, steal information, and make off with the cash.

According to the FBI, elder fraud cost victims a staggering $3.4 billion in 2023. And that’s just the reported cases. Many suffer in silence, too embarrassed to come forward. It’s a crisis hiding in plain sight.

Common Forms of Elder Fraud

Family Impersonation Scams

These scams occur when a fraudster pretends to be a family member in urgent need of help, often requesting money under false pretenses. For instance, "Jimmy" calls his grandpa, desperate for money due to an "accident" or "arrest." And with just a few seconds of audio, AI can now imitate someone’s voice with hair-raising accuracy.

Medicare and Health Insurance Scams

Medicare and health insurance scams involve fraudsters posing as representatives of Medicare, health insurance companies, or healthcare providers. They'll often start with something like, “Hi, this is Medicare. I'm calling about your coverage.” Fraudsters use these scripts to steal personal information, commit identity theft, or fraudulently bill for services that were never provided.

Romance Scams

These scams leverage emotional manipulation, as scammers pretend to offer companionship and love, often building trust over time to exploit victims.

Tech Support Scams

These scams can involve pop-ups, robocalls, or even fake Microsoft reps, as scammers contact victims or trick them into reaching out by claiming there is an urgent issue with their computer or device.

Scams So Absurd They Could Be Fiction (But Aren’t)

Let’s dive into two recent true stories.

Case 1: The Bail Money That Wasn't

In California, a scammer used AI to clone a man’s son’s voice. The "son" claimed he’d been in a car crash and needed bail money fast. The voice was perfect. Panicked, the father handed over thousands. Then came “the lawyer,” saying bail had gone up. By the time the truth came out, $25,000 was gone.

Case 2: Romance Meets Horror

Liza Likins, widowed for over two decades, finally decided to dip a toe into dating. She met a man on Facebook Dating and fell in love. As he spun his slow, emotional web, he convinced her to sell her house because he claimed he needed bail money. Unfortunately, it was all fiction. He was a scammer, and she lost over $1 million.

All It Takes Is a Voice and a Signal

Today’s scammers don’t need a printing press or a hacker army. They just need a few audio clips and a Wi-Fi signal. AI tools now allow fraudsters to replicate voices and manipulate emotions faster than you can say “wait, what?” For seniors unfamiliar with this technology and distressed at the prospect of a loved one in trouble, it’s an unfair fight.

To prevent these scams, it’s critical to spread awareness and implement the following best practices.

How to Avoid an AI-Enabled Scam

Ask an Oddball Question - something only the real person would know. Scammers may use convincing voices but might stumble over personal details.

Hang Up, then Call Back - even if it sounds like your loved one, hang up and call their actual number. If they’re fine, you’ll be glad. If they’re not…well, it’s still safer to verify.

Resist the Panic Timer - if someone’s demanding money right now or saying someone will get hurt, take a breath. Time pressure is the scammer’s secret weapon. Pause to consider the request and consult with someone you trust.

Reach out to the bank - if you’re unsure about a transaction, call the financial institution. Banks often have protocols to protect clients from scams. Some employees may have seen these scams already and can recognize the fraud patterns.

Audit Your Online Oversharing - if your social media bio reads “Mom of 3 boys, proud grandma, lives in Poughkeepsie with Scruffy the beagle”... you're handing scammers the script. Details about family members, locations, or routines can give scammers the information they need to make their calls more convincing.

Don't Forget to Report It!

If you think you or someone you love has been targeted, you should report it immediately. The more people speak up, the harder it becomes for scammers to hide in the algorithmic shadows. In the U.S., you can contact the FTC, FBI Elder Fraud Hotline, or local law enforcement. Financial institutions are also key partners in reporting suspicious activity, and the Financial Crimes Enforcement Network (FinCEN) provides guidance to help banks detect and prevent elder financial exploitation.

Have You Herd?

Elder fraud might sound like a personal problem, but the tactics used to target your grandma today could be aimed at your finance team tomorrow. At Herd Security, we train teams to recognize the emotional cues, AI-powered scams, and deepfake tactics that are reshaping social engineering. Let's make sure we all stay ahead of these threats - in the office, out on the town, and at home.

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