Modern day scams affecting the over 60s

Scams are definitely not a new thing, but they have become more sophisticated in recent years, thanks to advances in technology and artificial intelligence (AI), making it easier for scammers to steal personal information and protect their anonymity.

Every year, thousands of people are impacted by scams. The National Fraud Intelligence Bureau (NFIB) and Cyber Crime Dashboard reported that in 2024, there were 318,848 cases of fraud and a total loss of £2.3 billion. 52,980 of these were in relation to online shopping and auction scams (totalling at £104.5M losses).

In some cases, older people can be vulnerable to these scams as they are often perceived as being less tech savvy, having not grown up with the internet. In fact, Age UK research found that more than 1 in 3 over 65s lack basic internet skills. Furthermore, 61% of those aged over 65 have reported being a target of financial fraud according to Independent Age.

At Chums, we realise that many of our customers may be the target of a scam, so want to raise awareness about common scams and how to report them. Read on for more information.

The impact of scams on victims

It goes without saying that scams can take a real financial toll on victims. According to UK Finance, in just the first half of 2024, there were over 1,600,000 cases reported and over £157 million stolen by fraudsters. Victims often face significant financial losses, making it difficult to cover basic needs in the aftermath.

However, there are many other ways people are impacted by being a victim of fraud. In a UK Government report , it was found that fraud can have emotional and psychological effects on victims, such as depression, anxiety, loss of confidence and trauma. It can also cause harm to relationships, at times leading to loneliness and isolation.

Part of this mental health impact is of course due to the financial strain of being scammed. In addition to this, though, is a strong sense of shame and self-blame. In a survey by Yonder Consulting, one of the common reasons why people don’t make an official fraud report is because they feel embarrassed or don’t want other people to know. Many people feel ashamed that they fell victim to a scam.

If you are scammed, however, it’s important to recognise that it’s not your fault and blame should only be directed towards the fraudster. What’s more, with the advancement of technology and AI, scams are becoming more difficult to identify and therefore harder to avoid.

The rise of AI-powered scams

Now most people have access to powerful artificial intelligence (AI) tools like ChatGPT, it’s easier than ever for scammers to create fake images, videos and audios, which often appear realistic. There are a number of different types of AI scams including the following:

Deepfake videos

Deepfake videos use a type of AI called deep learning to replace or manipulate someone’s face, voice or movements. These videos often look highly realistic and can be used to create things like fake celebrity endorsements of a product or brand.

For example, in 2024, a deepfake video of Taylor Swift was created, replicating her voice and appearance, to promote a Le Creuset giveaway. Users were then directed to click a button and answer a few questions. They were asked to pay a ‘small shipping fee’ of $9.96 and a hidden monthly charge, never to receive the cooking pot.

The cookware brand confirmed it didn’t have any partnership with Taylor Swift and that the giveaway was a scam. However, many people had provided financial and personal details before the fake ads could be removed. Deepfake celebrity endorsement videos were one of the fastest growing scams of 2024 according to Natwest, with reports increasing by 22% over the past 12 months.

Voice cloning

By using audio samples of someone’s real voice, AI can replicate it and generate a synthetic voice that mimics their exact tone, accent and speech patterns. Scammers can use a voice clip of someone, perhaps through social media videos, to create an AI-cloned voice. They can then identify the person’s friends and family and call them using the fake voice to ask for money. This type of scam also grew rapidly in 2024, with the number of reports of friends or family money requests increasing by 29% from 2023.

Fake e-commerce websites

Using generative AI, scammers are able to replicate the format of real e-commerce pages selling items such as men’s and women’s clothing, electrical items and kitchenware. These fake websites will often use stolen branding, fake reviews and discounts to encourage people to buy. When checking out, customers will usually be asked to enter their personal and financial information, meaning the scammer can now access and steal it.

Recognising and reporting scams

With the rise of AI, it can sometimes be hard to spot what is fake and what is real. However, there are a few tell-tale signs that you or a loved one is being scammed. By recognising these, you can hopefully prevent the scam from happening.

Paul Gray from Chums explains: 

"Scam awareness isn't about being cynical, it's about protecting the hard-earned security we feel. Some scam preventative measures might feel silly, but in the age of AI it is vital we are aware and are prepared to challenge any potential scams."

There are a number of common scams, such as phishing, deepfakes and pension pot scams, and the warning signs may vary depending on what type of scam it is. If you think you are being scammed, it’s important to take action to find out if what you’re dealing with is legitimate.

Scammers often use high-pressure tactics, like creating a sense of urgency or offering deals that seem too good to be true, to get you to act quickly without thinking. They may also contact you out of the blue with unsolicited offers, asking for personal information such as bank details or passwords. It’s therefore important to stop and verify before you give out information. There are a number of ways you can do this:

• If the message claims to be from a company or institution, look up their official contact details (phone number, email, or website) and reach out to them directly.

• Visit the official website of the company or organisation and check to see if they’ve posted any scam warnings.

• If the communication involves an offer, prize, or job opportunity, search for reviews or reports from credible sources, such as trusted news outlets or consumer protection websites, to see if others have flagged it as a scam.

How to report a scam

If you are a victim of fraud, it’s important to report the scam to the authorities. You can forward any suspicious emails to report@phishing.gov.uk and suspicious text messages to 7726 (you won’t be charged for this).

Alternatively, if you’ve lost money or been hacked due to an online scam, you can make a report to Action Fraud.

Fighting back against scams

To protect yourself against being scammed, there are a few things you can put in place, such as two-step verification and creating a safe word among family and friends. These will add an extra layer of security and help to keep your personal information safe.

Two-step verification

Turning on two factor authentication (2FA), also known as two step verification (2SV) on your most important accounts, such as email, banking and social media, can stop fraudsters and cyber criminals from accessing your account, even if they know your password. It’s a way of double checking that you are who you say you are when logging into your account.

When you set up 2SV, you’ll be asked to provide a second step which only you have access to. It may ask you to enter a code you received via text message, scan your fingerprint or confirm in an authenticator app. You don’t even necessarily need a mobile phone to enable 2SV. Some organisations allow you to use an email address, landline number or send you a separate device, such as a card reader for online banking.

The ‘safe word’ method

As mentioned above, scammers can use voice cloning to create fake calls from people you know well, such as friends or family members, to ask for money. If a loved one is in an emergency where they may need to ask for money, you’ll want to be sure it is legitimate. A method you can use to verify their identity is to agree on a ‘safeword’ that only your friends and family members know. That way, you can ask for the safeword if they call in an emergency to be sure it is really them contacting you.

Anti-fraud and scam initiatives

Due to the increase in online scams, which accounts for up to 40% of crime in England and Wales, a number of anti-fraud schemes and initiatives have been implemented by the Government, banks and organisations.

In February 2024, the Government launched the Stop! Think Fraud campaign which aims to give people all the information they need to protect themselves from scams. The campaign streamlines anti-fraud communication and provides tips both on protecting yourself from fraud and what to do if you have been scammed. Age UK has also created a guide to avoiding scams, with lots of useful information on how to spot different types of scams.

The phone company, O2, has created an AI granny, known as dAIsy to waste scammers’ time and keep them away from their customers. The details of this conversational AI bot has been scattered across the internet to attract scammers. When they phone dAIsy’s number, the bot keeps them on the phone for as long as possible, acting extremely confused and talking about her passion for knitting.

Mastercard recently updated their Consumer Fraud Risk (CFR) system using AI-powered insights to provide risk scores to banks in seconds. This means that banks can now more easily detect whether the transaction is going to a fraudster-owned account.

Scams have evolved a lot since the ‘Nigerian Prince’ email scams, where scammers would claim to be a wealthy individual, such as a person of nobility or a high Government official, who is in trouble and can’t access their funds. They’d ask for wire transfers, promising a significant reward in return. Nowadays, scams are more realistic using deepfakes, voice cloning and fake QR codes, making them harder to spot.

However, by educating yourself on the warning signs and how you can recognise scams, you can protect yourself and your loved ones. Reporting scams is also important to ensure action is taken to prevent other people from falling victim. Remember that while there’s a rise in AI scams, there’s also an increase in AI anti-fraud systems, such as O2’s AI granny, designed to keep your personal information secure.

Do you have any experience dealing with scammers? Let us know using #protectyourpounds on Instagram or Facebook.