ABA Testifies Before Senate Aging Committee on Protecting Seniors from AI-Generated Fraud

Association calls for coordinated action to combat growing threat of AI-enabled scams

WASHINGTON — American Bankers Association Executive Vice President for Risk, Fraud and Cybersecurity Paul Benda will testify before the Senate Special Committee on Aging today on the growing threat of artificial intelligence-enabled scams and the need for a coordinated response to better protect older Americans from financial exploitation.

At a hearing titled "The AI Deception Machine: Deepfakes, Chatbots, and the New Frontier of Senior Fraud," Benda will outline how generative AI is making scams more convincing, personalized and scalable while enabling criminals to exploit trusted identities and communications channels. 

"The central point of my testimony is straightforward: generative AI is not replacing traditional scams. It is industrializing them," Benda said in his prepared testimony. "A criminal can now create a convincing voice, video, photograph, text message, advertisement, or online persona with little technical skill and at very low cost." 

Benda's testimony highlights how banks are using AI, advanced analytics, employee training, consumer education and information sharing to better identify suspicious activity and protect consumers from increasingly sophisticated fraud schemes. 

"While criminals use AI to make deception more effective, banks employ AI to detect anomalies and protect customers,” Benda said. “The goal should not be to restrict beneficial defensive uses. It should be to strengthen safeguards, improve information sharing, and reduce criminals' ability to exploit communications and identity systems.” 

ABA’s testimony also outlines several policy recommendations, including establishing a National Office for Scam and Fraud Prevention, strengthening telecommunications safeguards, improving fraud-related information sharing, enacting the SCAM Act and modernizing identity and authentication systems.

"Congress can help by establishing accountable national leadership, strengthening telecommunications safeguards, improving information sharing and funds recovery, supporting modern identity systems, and ensuring that every sector involved in the scam lifecycle is responsible for protecting the public," Benda said.

Benda's full testimony is available here. 

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ABA Testifies Before Senate Aging Committee on Protecting Seniors from AI-Generated Fraud 

This isn’t ‘Home Alone’: Protecting seniors from real-life holiday crooks

by Tammy Weber

“Merry Christmas little fella. We know that you’re in there and that you’re all alone.” The crooks are plentiful and eager to capitalize on the loneliness of seniors, among other vulnerabilities.

The holiday season is soon upon us. It is a time of celebration and giving for most but beware of the takers. Online and other scams increase during the holiday season and many of these schemes target seniors. How can you identify and avoid senior scams?

Common Scams

Fake online stores — Watch out for online stores that are either fake or closely resemble a legitimate store/brand. If the price for a sought-after item is really low, it is too good to be true.

Gift card scams — These scams trick individuals to purchase fake gift cards or to use valid gift cards to pay for fraudulent goods or services. Make sure that you purchase gift cards from a reputable dealer. Online stores may advertise gift cards at a steep discount, and you may receive a gift card with no value. If you purchase gift cards in person, do not be upset when a cashier asks you the purpose of your purchase of multiple gift cards.

Phishing emails or text messages — If you receive a message from your bank or your credit card company that your account has been compromised, do not click on the link provided which prompts you to log into your account. Once you do this, the scammers have your personal information. Go to the main website of your bank or credit card company and log into your account or call the bank or your credit card company using the number on your bank statement or on the back of your credit card.

Tax relief services call, AKA government impersonator — “It looks like you still have some back taxes. I’m calling because you’re eligible to apply to have them eliminated through the total tax forgiveness program, but we need to enroll you now.” Of course, they will want your confidential information including your date of birth, social security number, address and more in order to enroll you. Do not give this information out over the phone. Remember the IRS will never call you on the phone. You will receive a formal letter in regular mail.

Grandparent scams — You get a call that your grandchild is in trouble and needs money to fix their car or make bail. The call may go like this — “Please don’t tell mom that I have been arrested. I need $1,000 for bail wired to this bail bondsperson.” The scammer is counting on the grandparent not being familiar with the grandchild’s voice.

Lottery phone scams — “You’ve won the lottery. We cannot wait to send you a certified check for your winnings, but we need x dollars in order to make sure your winnings get to you safely and are not stolen en route.”

Romance scams — In 2023, Americans lost $652 million in losses tied to romance and confidence scams according to the FBI’s Internet Crime Report. In They’re Giving Scammers All Their Money. The Kids Can’t Stop Them, Tara Siegel Bernard details the story of a son who could not stop his father from giving approximately $1 million to scammers, including one posing as a female wrestling star.

Warning signs

Are you noticing sudden changes in your love one’s financial habits? Are they going to the bank more often, or do you see unusual withdrawals of large sums of money by someone accompanying your loved one? Has a name been added to the bank signature card? Have funds disappeared or are valuable possessions no longer displayed in the home? Are bills going unpaid or late notices being received? Are formerly uninvolved relatives now in the picture and claiming rights to possessions and involvement in your loved one’s affairs? Are services being provided that are not necessary? Is there now a mortgage on a previously paid-off home? Have you received notice that you are no longer the agent under your loved one’s Financial Power of Attorney? Did the local bank teller mention that your loved one has been in to the bank with a “new friend?”

Protect Yourself

Do not respond to requests for money, bank account numbers or credit cards. Never give out personal information in a phone call or email. Do not give out your Social Security number. When in doubt, hang up the phone!

Trusted resources

Where do you go to report these types of scams? The Office of Attorney General (OAG) has a Senior Protection Unit which investigates elder scams and financial exploitation. You may contact the OAG by email at seniors@attorneygeneral.gov or by calling the Senior Help Line at 1-866-623-2137. For more on this, view the presentation called Seniors, Scammers, and Scoundrels. The Federal Trade Commission (FTC) has a website where you can report fraud and scams. There is also a listing of frequently asked questions to help educate you. You can also go to your county Area Agency on Aging.

“You guys give up? Or are you thirsty for more?” The scammers are not going to give up as they want more, but you can be vigilant.

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This isn’t ‘Home Alone’: Protecting seniors from real-life holiday crooks

‘We need to take care of the elderly’: Task force continues to work toward protecting seniors

Elder Abuse and Exploitation Task Force working with multiple agencies in Bexar County

 

The Elder Abuse and Exploitation Task Force has made great strides in the past two years in protecting the elderly and prosecuting cases of elderly abuse. But officials admit more needs to be done.

By Erica Hernandez, Digital Journalist/Courthouse Reporter
     Misael Gomez, Photojournalist

SAN ANTONIO – The Elder Abuse and Exploitation Task Force has made great strides in the past two years in protecting the elderly and prosecuting cases of elderly abuse.

State Sen. José Menéndez of San Antonio, along with Probate Court 2 Judge Veronica Vasquez saw a need for the task force that was created in 2020.

“We have seen continuously that we’re usually ranked second under Harris County for elder abuse and exploitation and for cases that are reported to Adult Protective Services as well,” Vasquez said.

Since 2020, the task force has seen a lot accomplished among different agencies who work with them.

The district attorney’s office has added a prosecutor solely dedicated to elderly fraud cases, Adult Protective Services have hired more investigators and local financial institutions are helping catch financial abuse.

“What we want is to be so aggressive with protecting elderly that we show the rest of the state, the nation, that we’re going to prosecute people,” Menéndez said. “We need to take care of the elderly.”

Now the focus is shifting to get more legislation passed protecting the elderly and educating the public on the importance of reporting cases of abuse.

“If you wind up not reporting it, that can lead to misdemeanor charges or whatever it may be,” Vasquez said. “So people really need to understand that there are serious consequences to not actually reporting these types of crimes.”

The Texas Abuse Hotline to report cases of elderly abuse is 1-800-252-5400. This is the same hotline that child abuse cases are also reported.

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‘We need to take care of the elderly’: Task force continues to work toward protecting seniors

Editorial: Protecting seniors requires funding from the Iowa Legislature

Child abuse is not simply a “family matter” others should ignore or dismiss. We all know this.

Educational campaigns and troubling news stories prompt people to take action when they believe a child is being mistreated. In fact, we feel obligated to report it to authorities.

Yet there is less public awareness and feeling of communal responsibility when it comes to mistreatment of older people. Elder abuse may not be on our radar, even though older adults, particularly those who are frail or have diminished cognitive function, can be just as vulnerable as children.

They need to be protected too, a point made in a recent report compiled by University of Iowa researchers for the U.S. Department of Justice.

Researchers focused their study on 1,000 square miles in east-central Iowa, including Cedar Rapids and Iowa City. They held meetings, conducted interviews, compiled information from law enforcement and reviewed laws, regulations and other data.

They found prosecution of elder abuse is a relatively rare occurrence. That means abusers go unpunished, seniors continue to suffer and the rest of us are in the dark about problems.

“One thing that really jumped out at us was a sort of acceptance or lack of awareness about elder abuse in general,” said Brian Kaskie, an associate professor at the U of I and co-author of the report.

Abuse is not necessarily physical. He’s heard stories about family members moving into homes and taking advantage of seniors. A bank worker shared an anecdote about an elderly customer's relative trying to withdraw thousands of dollars. A law enforcement officer said victims themselves frequently do not want to file charges against an abuser, particularly if it is someone they rely on for daily help.

Kaskie hopes eventually there can be as much awareness about senior abuse as there is about child abuse and domestic abuse.

“Protecting seniors is a bipartisan issue,” he said.

Iowa lawmakers can do more to help. They should begin by recognizing government is not the enemy, but the best entity for helping protect the most vulnerable people, including the more than 500,000 Iowans over the age of 65. And government can do its job only if it’s adequately funded.

Recommendations from the report include: increased funding for state and county attorneys to prosecute elder abuse; involving social workers and therapists in the investigative process; funding for individuals and organizations who can serve as guardians for elders; and public awareness campaigns.

Those things are not free. Yet the GOP-controlled Iowa Legislature insists on cutting taxes and trying to shrink the size of government. A lack of funding for state agencies has consequences for not only older Iowans, but all taxpayers who fund their health care through Medicare and Medicaid.

“Victims of elder abuse have an increased risk of hospitalization and death. Victims are also more likely to be placed in a nursing home and are at an increased risk of developing mental disorders such as depression and anxiety,” according to the report.

In 2017, the Iowa Department on Aging received about $250,000 in state appropriations specifically to support elder abuse prevention and awareness, according to the report. Yet budget shortfalls meant the use of those funds was limited to supporting efforts and making referrals to understaffed government agencies.

Iowans understand the importance of looking out for those who cannot look out for themselves. The people we elect to represent us need to make sure government has the resources to do it.

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This editorial is the opinion of the Des Moines Register’s editorial board: Carol Hunter, executive editor; Kathie Obradovich, opinion editor; Andie Dominick, editorial writer, and Richard Doak and Rox Laird, editorial board members.

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Editorial: Protecting seniors requires funding from the Iowa Legislature

Transparency and protecting seniors from fraud

Based on a question in July from a reader about how to keep her elderly mother from getting scammed, I started a series on elder finances. In that July column, I emphasized the importance of transparency within “Mom’s team,” a group of family/friends and professionals selected by mom, ideally.

Transparency is the state in which team members can see what is going on with mom’s money in an appropriate manner. Duplicate statements can be sent on mom’s accounts to team members, for instance. These days secure, online access can be granted on a view-only basis. This is a handy way to allow team members to see what is going on but not exercise transactions.

View-only is a good step when mom wants someone to help her out by keeping tabs on things but wants to maintain decision making independently. When it is time for someone else to make decisions on mom’s behalf, transactional permissions can be granted.

Online access in general has a lot of appeal because geographically separated team members can get the information they need in a more timely and efficient manner than waiting for statements in the mail. If mom starts to engage in odd transactions like hitting the ATM more often or for more cash than normal, questions can be raised.

Everyone on the team doesn’t need to see everything and the attorney/client privilege is an important safeguard that must be respected but everyone’s activities should be subject to some level of review. Sadly, family members are actually the most common perpetrators of financial exploitation of the elderly.

Bernie Madoff was able to pull off his massive fraud largely because he controlled the supply of information. Had his clients’ assets been held by a third party that reported to clients independently, the odds he would have been much lower. He may not even have tried it.

It has been said that reputation comes from what people see you do but character reflects what you do when no one is watching. One sign mom has a good team is if its members welcome transparency or better yet, insist on it.

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Transparency and protecting seniors from fraud