UK elderly fraud victims lose £4,000 per scam, research says

Elderly victims of fraud in the UK are losing an average of £4,000 per scam, according to research by Independent Age. A survey of 2,000 UK adults by the charity last year found almost two-thirds (65%) of people aged 65 and over had been the target of fraud and scams.

Not only that but a third of older fraud victims said their mental health was adversely affected by the experience, while a further 12% said their physical health had worsened as a result.

According to a financial crime report by exchange group Nasdaq, $2.8 billion was lost to fraud perpetrated on the elderly in the UK last year.

The Financial Conduct Authority (FCA) said it protected older citizens through its Consumer Duty regime and its vulnerable customer rules, which require firms to consider how they can “empower consumers to take actions that will support them to protect themselves from scams in times of low capacity or impaired decision-making”.

An FCA spokesperson said the regulator also expected firms to have anti-fraud systems in place to protect elderly customers and identify where they were making atypical payments that might indicate fraud. Through its SmartScam campaign, the FCA scans 100,000 websites daily for scams, taking down hundreds and issuing a total of 2,240 warnings in 2024, the spokesperson added.

At a Nasdaq webinar last June, Dan Castro, director of fraud and compliance at Ventura County Credit Union, noted that global cases of elderly exploitation mostly emanate from organised crime groups (OCGs): “We have seen an international crime group where one individual is linked to a $46 million scam group in the UK,” he said.

“[OCGs] are very sophisticated. They are actually more organised than we are at times, because they do not have all the regulations and governance [to comply with]. They also contact other [OCGs] to understand what’s going on in other regions.”

Preying on the lonely

Fraud cases targeting the elderly often intersect with other typologies such as romance scams. Many studies highlighted a trend whereby scammers exploit loneliness among the elderly. Fraudsters typically use online dating sites or social media platforms to establish trust and stimulate connections in order to manipulate victims for financial gain. Nasdaq said that elderly victims can be further exploited as money mules.

The UK awareness website Action Fraud Claims Advice found that individuals aged 65 to 74 are the most affected age group in romance scams, with some regions reporting a near 75% increase in cases year-on-year.

Castro at Ventura County Credit Union explained that most elderly fraud cases remain “unidentified” because they do not typically fit the traditional definition of fraud. For example, a scammer might connect with victims online and form a relationship by sending flowers, food or even visiting them in hospital. The scammer then isolates victims from their family members before targeting them for financial gain. This type of scam particularly increased during the Covid-19 pandemic, he said.

Pig-butchering

For elderly fraud, criminals often use a technique known as “pig-butchering”, which entails spending a long period of time building fabricated relationships with victims.

Greater Manchester Police (GMP) shared a case involving an 83-year-old victim who lost over £20,000 to a scammer she met through an online game. Over 18 months, the scammer formed a relationship before asking the victim to send money to a proxy bank account based in the UK.

The UK-based bank, which was initially unaware of her transactions, is now monitoring the victim’s account for suspicious activity, following requests by her brother.

Stacey Shannon, GMP fraud prevention and protection lead, said: “Criminals are experts at impersonating other people, and they spend days, weeks, months and even years cultivating a relationship with you — all to execute a scam and take your money.”

On the other hand, the FCA report found that older vulnerable consumers pointed to long-standing banking relationships — often spanning decades — as a foundation for trust and a reason for disclosing their circumstances.

Older customers with established relationships also feel more comfortable talking to financial institutions about their needs than their younger counterparts. The main challenge remains to make communication more accessible and inclusive for older consumers, such as tailoring and simplifying digital communication.