Seniors are among the groups most targeted for financial fraud, she said.
“I always knew that the elder fraud was a problem, but when I got to this unit, I realized it is an absolute epidemic,” Varnell said. “Every sort of fraud that hits the normal public—it’s hitting seniors worse.”
Seniors grew up as a more trusting generation, and when that is coupled with loneliness, they become more vulnerable targets, Fort Worth Police Sgt. Charles Boykin said. Boykin works in the city’s fraud unit and sometimes provides prevention education at local senior centers.
“There’s a reason why they’re probably the biggest targets,” Keller Detective Mike Riehle said. “They, as a whole, across the country, hold more liquid assets than any other group. It could [also] be they’re out of touch with technology, possibly.”
The Elder Financial Fraud Unit was created by Tarrant County District Attorney Sharen Wilson to help combat these crimes. In 2018, there were 38 validated reports of financial fraud against Tarrant County residents ages 65 and older, according to data from the Texas Department of Family and Protective Services. The number of nonvalidated allegations was 859. Part of that gap is due to the difficulty of identifying a suspect and collecting enough evidence to pursue a case.
About one in 20 older adults nationwide experiences financial exploitation each year, according to the U.S. Department of Justice. But due to a reluctance to report, authorities learn about only one of every 44 incidents of elder financial abuse.
Reporting these types of crimes should be a priority, Roanoke Police Officer Ryan Otero said.
“These are things we need to know about,” Otero said. “We need to know what kind of scams are out there so we can warn other people. ... And it’s important for them in case something else happens in the future [with] their credit. They’ll have a police report to back it up.”
The 'epidemic'
Tarrant County ranks No. 1 among 19 counties in the North Texas area for allegations of financial exploitation for people ages 65 and older, according to the Texas Department of Family and Protective Services.
Tarrant County’s Elder Financial Fraud unit is partly responsible for this, said Marissa Gonzales, media specialist for the Department of Family and Protective Services.
“The county’s dedication to investigating fraud against the elderly means higher numbers of referrals,” she said in an email.
The unit’s main mission is to deter senior scams and prosecute perpetrators. Its attorneys and investigators also meet with seniors throughout the county and partner with local police to educate people about elder financial fraud.
In most cases of elder financial fraud, the money taken from the victim is not recoverable, Varnell said. About half of the cases she works result in the recovery of some of that money. Her unit can force criminals to pay the money back over time if they are caught. Since May 2017, the Tarrant County unit has recovered more than $1 million of stolen money, Varnell said.
“We have gotten $1.64 million ordered in restitution and seizures,” she said in an email.
But the likelihood of recovering the money is generally low, Otero said, because these scammers can be in another state or overseas.
“They are very hard to track, so it’s not easy to find the people who [do] this,” he said.
Common types of scam
The perpetrators of the financial exploitation cases the Tarrant County unit prosecutes usually fall into a few categories, including organized crime and contractors, Varnell said.
Organized crime includes several categories of scams, Varnell said. These criminals will try to befriend their victims and con them.
In contractor scams, people will pretend to offer a service. They will try to offer discounted materials or a good deal but will provide poor work or no work at all, Varnell said. If elderly people find themselves wiring money unexpectedly, Varnell said she urges them to stop and reconsider why they are doing it.
Sometimes, it can even be the victim’s friends or family who are exploiting them, Boykin said.
“They look like everyone else—that’s the problem,” Boykin said. “There’s an element of boldness that would shock you.”
Preventive actions
These scams often come with red flags, police said. People should be wary of strange calls or requests.
“The IRS or the government usually try and contact [you] by mail first. It’s not going to be by phone,” Otero said. “If the first [time] you’re hearing about this is by phone, it’s probably a scam. And they don’t use fear tactics [or threats]. The government’s not going to call you and say, ‘If you don’t take care of this right now and you don’t pay me right now, we’re going to stop your Social Security checks.’”
Boykin recommended that people check their bank accounts daily, set up transaction notification systems and monitor credit reports monthly.
“Anyone can be a victim,” he said. “All our information is out there. There are so many methods of obtaining it, so we have to be diligent.”
In addition to being reported to police, elder financial fraud can be reported to the county’s unit at 817-884-1400. Fraud related to unwanted calls or emails can be reported to the Federal Communications Commission at www.consumercomplaints.fcc.gov.
