In the United States, elder financial exploitation is associated with poor mental and physical health as well as increases in hospitalization and mortality (Burnes et al., 2017). A type of elder financial exploitation is financial fraud, which is defined by Hall et al. (2016, p. 35) from the Centers for Disease Control and Prevention as “Deception carried out for the purpose of achieving personal gain while causing injury to another party. An intentional distortion of truth initiated to convince another to part with something of value or to surrender a legal right.” A meta-analysis completed by Burnes et al. (2017) found financial fraud to be a common problem affecting approximately one in 18 cognitively intact older adults living in community settings with a 1-year prevalence of 5.4%.

Conditions shaped by coronavirus disease 2019 (COVID-19) created a “perfect storm” for opportunistic financial fraud directed at older adults. Social distancing, difficulties in accessing medical and social services, unprecedented job losses, increases in retirements, the infusion of stimulus funds into a volatile economy, misinformation surrounding the vaccine, and a heightened sense of fear among some older adults because of the health care dangers provided a veritable playground for fraudulent telemarketers and internet scammers. Reports of COVID-19 scams (e.g., fake cures, services, and charities) appeared in the press soon after the pandemic began and proliferated as it unfolded (e.g., Associated Press, 2020; Jarin, 2021). The Federal Trade Commission (FTC), which bases its numbers upon voluntary reports, found that between January 2020 and June 2022, it received more than 544,243 reports of fraud associated with COVID-19 and reports of fraud and identity theft with a median fraud loss of $425 per person (Federal Trade Commission, 2022). People ages 60–69 experienced the highest dollar losses per person.

The purpose of our study was to embed the financial fraud of older adults within individual and systemic contexts of the Contextual Theory of Elder Abuse (CTEA; Roberto & Teaster, 2017) in order to examine types of perpetration (e.g., scams, fraud, phishing attempts, and identity theft) during the early months of the pandemic. We hypothesized that social distancing and other systemic changes contributed to the vulnerability of older persons to financial fraud. Specifically, we asked: What types of COVID-19-related fraud attempts did older adults experience, and how did they respond (RQ1)? Do demographic and situational variables predict how older adults responded to attempts of COVID-19-related fraud (RQ2)?

Understanding the Nature of Financial Fraud

Most of what is known about the umbrella term “financial exploitation” concerns family members or trusted others known to the older adult. We know far less about financial fraud perpetrated by strangers (Burnes et al., 2017; DeLiema et al., 2017; Steinman et al., 2020). Using a random sample of older adults in Pennsylvania, Beach et al. (2010) found that, among African American respondents, most financial exploitation was actually financial fraud. In addition, Black older adults were disproportionately affected, especially those who lived below the poverty line.

Holtfreter et al. (2014) compared exploitation by family members to fraud across three specific types, finding that 42.9% and 25.7%, respectively, spent the victim’s money or sold something without permission; 50% and 30%, respectively, forged the victim’s signature; and 29.6% and 39.2%, respectively stole money or took items from the victim.

While no single, reliable predictor of fraud susceptibility exists, DeLiema et al. (2017) found that participants in the National Health and Retirement Study who were younger, mean age 63.2, male, better-educated, and depressed most often reported being victimized. Lichtenberg et al. (2015) also found the same predictors, with higher education emerging as the strongest predictor of fraud. Moreover, a study of scams during COVID-19 by Nolte et al. (2021) suggested that older age might serve as a protective factor against fraud, as did a COVID-19 study by Mueller et al. (2020).

Theoretical Framework

Acknowledging the unique environmental context—the early phase of the COVID-19 pandemic—our study was guided by the CTEA (Roberto & Teaster, 2017), specifically, the individual and societal contexts of the theory. Building upon Bronfenbrenner’s (1986) ecological model of human development and the Centers for Disease Control’s (2015) social–ecological model for violence prevention, the CTEA includes individual, relational, community, and societal contexts. The individual context, our primary focus, involves biological and personal factors that influence how individuals behave, how risk factors increase the likelihood of becoming a victim or perpetrator, and how factors (e.g., poor health and dementia) affect individuals during and after an abusive situation, especially one that could be hidden within the isolation set in motion by the pandemic. Variables of particular interest in this study include personal characteristics (e.g., age, sex, gender, and race/ethnicity); education; habilitation (rural or urban geographic area); income; physical health; emotional health; and decision-making capacity. In addition, we emphasized the societal context, which considers broad ideological values and norms that create a climate in which abuse is normative or non-normative. Age-related changes in social position and access to financial resources can heighten the risk of late-life abuse. Societal tolerance for abuse within the United States is reflective of ageist attitudes (Roberto & Teaster, 2017). However, the enactment of state laws and penalties demonstrates a shift toward growing societal intolerance for the exploitation of older adults. Widespread government actions that support the welfare of older adults are representative of the societal context of CTEA (Roberto & Teaster, 2017).

Method

Sample

We invited older adults aged 60 and older enrolled in gerontology research registries at four universities to complete an online survey about their experiences with financial fraud: Florida State University (FSU), University of Pittsburg (PITT), Virginia Tech (VT), and Wayne State University (WSU). Initially, registry participants were recruited from community gatherings of older adults, social media campaigns, and other research studies. Collectively, 6,488 older adults in the registries agreed to be contacted to learn about future research projects at their respective sites (FSU, n = 2,700; PITT, n = 2,300; VT, n = 269; and WSU, n = 460). Members were sent an e-mail invitation to participate in the COVID-19 exploitation study in July 2020. Responses to the survey were pooled for a response rate of 15.4% and a final sample of 998 older adults. While the sample size is adequate, we acknowledge the relatively low response rate. Because data collection occurred during unprecedented historical times, the research group decided to contact the older adults only one time in order to avoid survey anxiety or fatigue anticipated by collecting two more waves of data in 2020. Consequently, while generalizability may be limited, our findings nonetheless shine a light on the issue of the financial fraud of older adults during the pandemic.

Table 1 provides detailed descriptive information about the respondents, who ranged in age from 60 to 98 (M = 71.3; standard deviation [SD] = 6.8). Most identified as White (93.4%), female (64.2%), and living with a spouse/partner (58.1%). In response to questions about their health, most respondents did not perceive any changes in physical health (70.1%) or emotional well-being (60%) in the 2 months prior to completing the survey. When changes occurred, respondents were more likely to report a decline in emotional well-being (32.5%) than their physical health (17.9%). About the same percentage of older adults responded that compared to prior to the start of the COVID-19 outbreak, their current feelings of social isolation and loneliness stayed about the same (41.8%) or increased (54.8%). Only about 1% of the older adults reported having had COVID-19, although about 5.8% reported that someone close to them had the virus.

Elder financial exploitation in the United States is linked to negative health outcomes, including poorer mental and physical health, increased hospitalizations, and higher mortality rates. Financial fraud, a specific form of this exploitation, is defined as deception for personal gain that harms another party, involving the intentional distortion of truth to obtain something of value or a legal right. Research indicates that financial fraud is a widespread issue, affecting approximately 1 in 18 cognitively healthy older adults residing in community settings, with a one-year prevalence rate of 5.4%.

The COVID-19 pandemic created an environment conducive to financial fraud targeting older adults. Factors such as social distancing, reduced access to essential services, widespread job losses, increased retirements, economic instability due to stimulus funds, vaccine-related misinformation, and heightened health fears contributed to a favorable setting for fraudulent activities. Reports of COVID-19-related scams, including those for fake cures, services, and charities, emerged early in the pandemic and increased over time. The Federal Trade Commission (FTC) documented over 544,243 reports of COVID-19-related fraud and identity theft between January 2020 and June 2022, with a median loss of $425 per person. Individuals aged 60-69 reported the highest financial losses.

This study aimed to analyze financial fraud against older adults within the framework of the Contextual Theory of Elder Abuse (CTEA), considering both individual and systemic factors. The research sought to identify types of fraud experienced during the initial months of the pandemic, such as scams, phishing attempts, and identity theft. It was hypothesized that social distancing and other systemic changes increased older adults' susceptibility to financial fraud. The study specifically investigated the types of COVID-19-related fraud attempts experienced by older adults and their responses, as well as whether demographic and situational variables predicted these responses.

Understanding the Nature of Financial Fraud

Most existing knowledge about financial exploitation focuses on cases involving family members or trusted acquaintances of older adults. Less is understood about financial fraud perpetrated by strangers. Research indicates that among African American older adults, a significant portion of financial exploitation is indeed financial fraud, with Black older adults, particularly those living below the poverty line, being disproportionately affected.

A comparison of exploitation by family members and fraud by strangers revealed differences in common behaviors. Family members more frequently spent victims' money or sold property without permission (42.9% vs. 25.7% for strangers) and forged signatures (50% vs. 30%). However, strangers were more likely to steal money or items directly from victims (39.2% vs. 29.6% for family members).

No single predictor consistently determines an individual's susceptibility to fraud. However, some studies have identified common characteristics among victims, including being younger (mean age 63.2), male, more educated, and experiencing depression. Higher education, in particular, has been cited as a strong predictor of fraud victimization. Conversely, some research, including studies conducted during the COVID-19 pandemic, suggests that older age might act as a protective factor against fraud.

Theoretical Framework

This study was framed by the Contextual Theory of Elder Abuse (CTEA), specifically focusing on its individual and societal contexts, given the unique environment of the early COVID-19 pandemic. The CTEA expands upon ecological models of human development and violence prevention, encompassing individual, relational, community, and societal levels.

The individual context, a primary focus, examines biological and personal factors that influence individual behavior, increase vulnerability to victimization or perpetration, and affect individuals during and after abuse, particularly amidst isolation. Relevant variables in this study included personal characteristics such as age, sex, gender, race/ethnicity, education, geographic location (rural or urban), income, physical and emotional health, and decision-making capacity.

The societal context considers broader cultural values and norms that either normalize or denounce abuse. Changes in social position and access to financial resources associated with aging can heighten the risk of late-life abuse. While ageist attitudes in the United States may reflect societal tolerance for abuse, the implementation of state laws and penalties signifies a growing intolerance for the exploitation of older adults. Government initiatives supporting the welfare of older adults also exemplify this societal context within the CTEA.

Method

Older adults aged 60 and above, who were enrolled in gerontology research registries at Florida State University, University of Pittsburgh, Virginia Tech, and Wayne State University, were invited to complete an online survey concerning their experiences with financial fraud. These registry participants were originally recruited through community events, social media, and other research initiatives. A total of 6,488 older adults across these institutions had previously agreed to be contacted for future research.

In July 2020, an email invitation to participate in a study on COVID-19 exploitation was sent to these individuals. The survey responses were combined, resulting in a final sample of 998 older adults and a 15.4% response rate. While the sample size is considered adequate, the relatively low response rate is acknowledged. Due to the unprecedented nature of data collection during the pandemic, the research team opted for a single contact to minimize potential survey anxiety or fatigue, foregoing additional data collection waves in 2020. Although this approach may limit the generalizability of the findings, the study provides valuable insights into older adults' financial fraud experiences during the pandemic.

Sample

The respondents' ages ranged from 60 to 98, with an average age of 71.3 years (standard deviation = 6.8). The majority of participants identified as White (93.4%), female (64.2%), and living with a spouse or partner (58.1%). Regarding health, most respondents reported no changes in their physical health (70.1%) or emotional well-being (60%) in the two months preceding the survey. Among those who did report changes, a decline in emotional well-being (32.5%) was more common than a decline in physical health (17.9%). A significant portion of older adults reported either no change (41.8%) or an increase (54.8%) in feelings of social isolation and loneliness compared to before the COVID-19 outbreak. Approximately 1% of the older adults reported having contracted COVID-19, while about 5.8% indicated that a close acquaintance had the virus.

Elder Financial Fraud During COVID-19

In the United States, elder financial exploitation is linked to poorer mental and physical health outcomes, as well as an increase in hospitalizations and mortality. Financial fraud is a specific type of this exploitation, defined as deception carried out to gain personal benefit by causing harm to another party. This involves intentionally distorting the truth to convince someone to give up something valuable or surrender a legal right. Research indicates that financial fraud is a common issue, affecting approximately one in eighteen older adults who are mentally intact and living in community settings, with a 5.4% prevalence over one year.

The conditions created by the coronavirus disease 2019 (COVID-19) pandemic presented an opportune environment for financial fraud targeting older adults. Factors such as social distancing, difficulty accessing medical and social services, widespread job losses, increased retirements, the influx of stimulus funds into a volatile economy, misinformation about the vaccine, and heightened health fears among some older adults contributed to this vulnerability. Reports of COVID-19 scams, including fake cures, services, and charities, emerged early in the pandemic and increased as it progressed. The Federal Trade Commission (FTC) received over 544,243 reports of COVID-19-related fraud and identity theft between January 2020 and June 2022. The median loss per person was $425, with individuals aged 60–69 experiencing the highest dollar losses. This study aimed to examine types of financial fraud, such as scams, fraud, phishing attempts, and identity theft, during the initial months of the pandemic. A core hypothesis was that social distancing and other systemic changes increased older persons' susceptibility to financial fraud. Key research questions explored the types of COVID-19-related fraud attempts experienced by older adults, how they responded, and whether demographic or situational factors predicted those responses.

Understanding Financial Fraud

While much is known about financial exploitation by family members or trusted individuals, less is understood about financial fraud committed by strangers. However, one study found that among African American older adults in a random sample, most financial exploitation was actually financial fraud, and Black older adults, especially those living below the poverty line, were disproportionately affected. A comparison of exploitation by family members versus strangers revealed differences in specific actions: family members were more likely to spend a victim's money or sell something without permission (42.9% vs. 25.7%) and to forge signatures (50% vs. 30%). Conversely, strangers were slightly more likely to steal money or items (39.2% vs. 29.6%). There is no single, reliable indicator of who is susceptible to fraud. Some studies have suggested that individuals who are younger (around 63 years old), male, more educated, and depressed report being victimized more often. Higher education has even been identified as a strong predictor of fraud victimization in some research. However, other studies conducted during the COVID-19 pandemic have suggested that older age might serve as a protective factor against scams.

Theoretical Framework

Acknowledging the unique environmental context of the early COVID-19 pandemic, this study applied the Contextual Theory of Elder Abuse (CTEA). This framework, which builds upon ecological models of human development and violence prevention, includes individual, relational, community, and societal contexts. The study primarily focused on the individual context, which encompasses biological and personal factors that influence behavior, increase vulnerability to abuse, and affect individuals during and after abusive situations, particularly those hidden by the isolation of a pandemic. Specific variables of interest included personal characteristics (e.g., age, sex, race/ethnicity), education, geographic location, income, physical health, emotional health, and decision-making capacity. The study also emphasized the societal context, which considers broad ideological values and norms that shape whether abuse is seen as acceptable. Age-related changes in social position and access to financial resources can heighten the risk of abuse in later life, and societal tolerance for abuse in the United States often reflects ageist attitudes. However, the development of state laws and penalties demonstrates a shift towards growing societal intolerance for the exploitation of older adults, with widespread government actions supporting the welfare of older adults also representing this societal context.

Study Method and Participants

The study invited older adults aged 60 and above, who were enrolled in gerontology research registries at four universities, to complete an online survey about their experiences with financial fraud in July 2020. Participants for these registries were initially recruited through community gatherings, social media campaigns, and other research studies. From a collective pool of 6,488 registered older adults, 998 completed the survey, resulting in a response rate of 15.4%. Despite the relatively low response rate, the findings offer valuable insights into older adults' financial fraud experiences during the pandemic's early stages.

The survey respondents ranged in age from 60 to 98, with an average age of 71.3 years. The majority identified as White (93.4%) and female (64.2%), with 58.1% living with a spouse or partner. When asked about their health two months prior to the survey, most respondents reported no changes in physical health (70.1%) or emotional well-being (60%). Among those who experienced changes, a decline in emotional well-being was more commonly reported (32.5%) than a decline in physical health (17.9%). Regarding social isolation and loneliness compared to before the COVID-19 outbreak, about 41.8% reported no change, while 54.8% reported an increase. A small percentage of older adults (approximately 1%) reported having had COVID-19 themselves, though about 5.8% reported that someone close to them had the virus.

Financial Exploitation of Older Adults

Financial exploitation of older adults in the United States is linked to worse mental and physical health, more hospital stays, and a higher death rate. Financial fraud is a form of this exploitation. It involves using deception to gain something valuable from someone else, or to make them give up a legal right. Research has shown that financial fraud is a common issue, affecting about one in 18 older adults who are mentally sharp and living in their communities. About 5.4% of these individuals experience fraud within a year.

The COVID-19 pandemic created ideal conditions for financial fraud targeting older adults. Factors like social distancing, limited access to medical and social services, widespread job losses, more retirements, government stimulus money in an unstable economy, false information about vaccines, and increased fear among older adults due to health risks made it easy for scammers to operate. News reports of COVID-19 scams, such as fake cures, services, and charities, emerged early in the pandemic and grew rapidly. The Federal Trade Commission (FTC) reported over 544,243 cases of COVID-19-related fraud and identity theft between January 2020 and June 2022, based on voluntary reports. The average loss per person was $425. Individuals aged 60 to 69 lost the most money on average.

The study aimed to understand financial fraud against older adults within the framework of the Contextual Theory of Elder Abuse (CTEA), focusing on personal and societal factors. The goal was to examine different types of fraud, such as scams, phishing attempts, and identity theft, during the pandemic's early stages. Researchers believed that social distancing and other major changes increased older adults' risk of financial fraud. The study specifically asked: What kinds of COVID-19-related fraud attempts did older adults face, and how did they react? Also, do factors like age, gender, or living situation predict how older adults responded to these fraud attempts?

Understanding the Nature of Financial Fraud

Most information about financial exploitation generally relates to actions by family members or other trusted individuals. Much less is known about financial fraud committed by strangers. One study of older adults in Pennsylvania found that for African American participants, most financial exploitation they experienced was actually financial fraud. Additionally, Black older adults, especially those living in poverty, were affected more than others.

Another study compared exploitation by family members to fraud by strangers across three types of actions. It found that for family members versus strangers: 42.9% and 25.7% respectively spent the victim's money or sold items without permission; 50% and 30% respectively forged the victim's signature; and 29.6% and 39.2% respectively stole money or items from the victim.

There is no single factor that reliably predicts who is most likely to be a victim of fraud. However, one study found that people who reported being victimized most often were younger (with an average age of 63.2), male, more educated, and experienced depression. Another study found similar predictors, with a higher level of education being the strongest one. Interestingly, some COVID-19 studies suggested that being older might actually protect against fraud.

Theoretical Framework

Given the unique setting of the early COVID-19 pandemic, this study followed the Contextual Theory of Elder Abuse (CTEA), specifically focusing on its individual and societal aspects. The CTEA builds on earlier models of human development and violence prevention. It includes individual, relational (relationships), community, and societal contexts.

The individual context, a main focus here, covers personal and biological factors that shape behavior. It looks at how risk factors make someone more likely to be a victim or a perpetrator, and how conditions like poor health or dementia affect individuals during and after abuse, especially if hidden by pandemic-related isolation. Key factors of interest in this study included personal traits (like age, sex, gender, race/ethnicity), education, living area (rural or urban), income, physical health, emotional health, and ability to make decisions.

The study also emphasized the societal context, which considers general values and beliefs that either accept or reject abuse. Changes in social standing and financial access related to age can increase the risk of abuse later in life. In the United States, a societal acceptance of abuse can reflect ageist views. However, new state laws and punishments show a growing societal rejection of elder exploitation. Broad government efforts to support the well-being of older adults also fit within the CTEA's societal context.

Method

Sample

Older adults aged 60 and above were invited to complete an online survey about their experiences with financial fraud. These individuals were part of gerontology research registries at four universities: Florida State University (FSU), University of Pittsburgh (PITT), Virginia Tech (VT), and Wayne State University (WSU). Participants for these registries were originally recruited from community events, social media, and other research projects.

In total, 6,488 older adults in these registries had agreed to be contacted for future research. An email invitation to take part in the COVID-19 exploitation study was sent to these individuals in July 2020. Survey responses were combined, resulting in a 15.4% response rate and a final group of 998 older adults. While the number of participants was sufficient, the response rate was noted as relatively low. Because data was collected during an unusual historical period, the research team chose to contact the older adults only once. This was done to prevent survey anxiety or tiredness that might have come from collecting more data later in 2020. Therefore, while the findings may not apply to all older adults, they still highlight the problem of financial fraud against older adults during the pandemic.

Detailed information about the participants shows that their ages ranged from 60 to 98, with an average age of 71.3. Most participants identified as White (93.4%), female (64.2%), and lived with a spouse or partner (58.1%). When asked about their health, most participants (70.1%) did not report any changes in physical health in the two months before the survey, and 60% did not report changes in emotional well-being. If changes did occur, participants were more likely to report a decline in emotional well-being (32.5%) than in physical health (17.9%). About the same number of older adults reported that their feelings of social isolation and loneliness either stayed about the same (41.8%) or increased (54.8%) compared to before the COVID-19 outbreak. Only about 1% of the older adults said they had COVID-19, though about 5.8% reported that someone close to them had the virus.

Summary

Older adults can lose money to scams, which can harm their health and even shorten lives. This problem, called financial fraud, affects about 1 in 18 older adults living on their own. During the COVID-19 pandemic, it became easier for scammers to trick people. Many older adults were alone or scared, and false offers for cures or services appeared. One group saw over 544,000 reports of COVID-19 fraud, with people often losing hundreds of dollars. This study aimed to understand the types of money tricks older adults faced during this time and how they responded.

Understanding the Nature of Financial Fraud

People often hear about older adults being tricked out of money by family or friends. But strangers also trick people. Sometimes, these strangers trick older adults who have less money. Both family and strangers might spend someone's money without asking or steal things. It is hard to know who will be tricked. Some studies show that younger older adults, men, or people with more schooling might be tricked more often. But other studies say that being older might even protect someone from scams.

Theoretical Framework

This study used a plan called the Contextual Theory of Elder Abuse (CTEA). It looked at how a person's own life and the wider world around them affect money tricks. The "person's own life" part includes things like their age, health, and how much money they have. These things can make someone more likely to be tricked. The "wider world" part looks at how society's ideas, like treating older adults badly, can play a part. But new laws show that society is starting to care more about protecting older adults.

Method

The study asked older adults aged 60 and up to take a survey online. These adults were part of research groups at four different universities. They were sent an email in July 2020. Out of over 6,000 people asked, almost 1,000 answered. Most of the people who answered were White women living with a partner. Most said their physical health had not changed, but about a third said their feelings had gotten worse. More than half felt more lonely or alone.