Will AI Agents Accelerate Identity Theft of Older Adults?
Imagine downloading an app that will allow a person to disguise their voice over their own phone to make calls. The voice that this person uses can be the voice of a person’s child, parent or sibling. Now imagine this technology in the hands of a theft. With the evolving use of AI this is just a glimpse into the future of identity theft. As 11,200 American turn 65 years old per day in the US, the need for Senior services continue to rise.[1] This daily aging rate is expected to last through 2027.[2] Americans over 65 years old spend an average $5,445.00 per month on expenses.[3]
Fraud of Older Adults and identity theft continue to pose significant threats, particularly to seniors. The FBI's 2023 report reveals a staggering $3.4 billion in total losses, with an average loss of $33,915 per victim. This 11% increase from the previous year underscores the growing sophistication of scammers. Interestingly, income levels play a crucial role in victimization rates. While high earners (over $200K annually) experienced the lowest rate of identity theft at 11%, low-income seniors were the most vulnerable. The middle-income bracket ($50,000 to $100,000) suffered the highest percentage of theft victims at 32%.
Gender disparities are evident, with women falling victim more frequently than men. Alarmingly, the threat persists even after death, as scammers target deceased individuals' Social Security benefits and estates. These statistics highlight the urgent need for enhanced cybersecurity measures and fraud prevention education, especially among vulnerable populations. By understanding these trends, we can better protect our seniors and communities from financial exploitation.
The emergence of AI Agents are something that Seniors need to look out for. AI Agents are multiple systems that complete basic and complex daily functions for people and businesses. AI Agents essentially collect and analyze data to make decisions on the owners’ behalf. This process improves the Agents algorithms making them more efficient. For example, image a fraudster instructing an agent from a computer program to conduct rob calls using the voice of each callers loved one to ask for money on an individual basis. This information can be easily collected from public databases i.e. city, county once collected they can locate a person’s relative by having the agents scan social media accounts in milliseconds. Once located, the loved one’s voice can be extracted from their social media profile thereby convincing the caller the person calling is their child who is in danger and needs money.
Older adults need to learn basic tech and AI skills. Many of my older clients struggle with simple tasks like logging into email or sending texts. While this can sometimes protect their info, it also leaves them open to scams using AI.
To help keep seniors safe, I suggest:
Set up a secret word with family to confirm they're talking to the right person.
Ask callers to use video chat to prove their identity.
Request the company name and address so seniors can look it up online to verify legitimacy.
Use credit freezes but be aware that credit bureau freezes aren't always effective. Freezing credit at Chexsystems.com works best, as many US banks use this service to check applicants before opening accounts or approving loans.
5. When employing a caregiver, relatives should opt for cryptocurrency transactions. This method ensures the individual's wallet address is blockchain-protected, safeguarding against potential future fraudulent activities.
These steps can help older adults stay safer in our increasingly digital world. By learning some tech basics and following these tips, seniors can better protect themselves from scams and fraud while still enjoying the benefits of modern technology.
Jillian Hishaw, Esq., is a FINRA Arbitrator, licensed attorney in Wyoming and North Carolina with over two decades of expertise in estate and asset protection. Jillian Hishaw has authored several books, legal journal pieces, and opinion columns on these topics over the years. To learn more about ways to protect your assets visit my blog at www.medicaidlien.com
[1] The Alliance of Lifetime Income, https://www.protectedincome.org/peak65/#:~:text=America%20is%20entering%20a%20historic,risk%20of%20outliving%20their%20savings.
[2] Id.
[3] Texas Hospital Association, https://www.tha.org/blog/the-silver-wave-record-high-4-million-americans-will-turn-age-65-in-2024/