Context

Age UK commissioned the review in response to concerns about older people becoming the victims of fraud. Older people can be vulnerable to scams affecting their financial security and impacting on their general health and well-being.

The study

Published in April 2015, this review considers how older people are affected by fraud (excluding financial abuse committed by people known to the individual). This UK based study draws on published material and supplementary information from organisations and academic experts. The review’s aim was to explore the evidence base and identify gaps to inform work going forward to tackles scams affecting older people in particular. The study reflects on five key areas:

• The prevalence of fraud
• Types of fraud
• Who is targeted and how
• Impact on victims
• The legal and statutory framework

Key findings and recommendations

The study presents the following key findings:

• but overall the evidence base on the prevalence of fraud against consumers is confusing and patchy.
• For example, one survey found that 53% of adults aged 65 and over in Great Britain believed fraudsters had targeted them. In the same research, one in 12 reported having responded to a scam. These figures are from the scams survey by Populus for Age UK, which took place between 13 and 15 March 2015. It questioned 1,002 adults aged 18+ in England, Scotland and Wales.
• The available evidence identifies through personal contact and mass marketing techniques including online and telephone interactions. Threats and intimidation are also sometimes used by fraudsters. Examples of frauds include bogus tradespeople, account takeover, charging advanced fees for goods or services which do not materialise, bogus holiday clubs, high risk investment scams, pension fraud, inheritance fraud and identify fraud.
• , particularly online.
• Scammers may appear professional and friendly initially, but can become threatening and intimidating. Fraudsters sometimes impersonate legitimate providers or the police.
• and some are targeted repeatedly (‘chronic victims’). Older people’s vulnerability to scams can be increased by factors such as social isolation, cognitive impairment, bereavement and financial pressure.
• However, some fraudsters target people with a common bond, such as club members, or through bogus advertising.
• Fraudsters also use . This can particularly affect older people with reduced ability to make decisions, who may trust the false claims of the fraudster. Some older people were also found to be more vulnerable to fraud owing to misplaced confidence, which made them compliant to a scam.
• The , with some victims losing tens of thousands of pounds. Estimated total losses of £9 billion per year are likely to be an underestimate, (A 2013 estimate by the former National Fraud Authority put total losses for individuals at over £9 billion per annum).
• The review indicates that older victims loose nearly twice as much financially to fraudsters compared to younger victims, and are less likely to be able to replace these funds compared to working age adults.
• Victims of fraud also report , (including depression, anxiety and reduced confidence), with long-term effects experienced by some older people.
• stems from a variety of reasons, including: denial, self-blame, and previous poor experiences of reporting fraud.
• The is primarily covered by the Fraud Act 2006 and the Consumer Protection from Unfair Trading Regulations 2008. The Fraud Act 2006 introduced a new general offence of fraud which could be committed by false representation. Whilst the review did not identify significant gaps in the legislation, it suggested greater priority and resource might be needed to tackle fraud more effectively. Age UK calls on the Government to set up a to strengthen the focus on the issue and coordinate existing and new action.

Points to consider

The review draws on survey evidence undertaken by Populus for Age UK, conducted between 13 and 15 March 2015. However, the survey was based on a small sample size (1,002 adults aged 18+ in England, Scotland and Wales). It is unclear how many of these people were aged 65 years and over. Furthermore, the survey was conducted via telephone, which given the sensitive topic area could result in under-reporting or miscoding of data obtained.

Based on the reference list, this appears to be a well-sourced review. The review draws on a range of evidence including official Government statistics, albeit each with limitations, particularly given the under-reporting of fraud.

Full report

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