Collaboration Needed to Tackle Fraud Crisis, AARP Expert Tells Congress

​New technology makes it easier for criminals to prey on older adults, and government, industry and advocates must work together to better protect consumers and support victims, AARP fraud expert Amy Nofziger told Capitol Hill lawmakers Thursday.

​“Fraud is constant, and it never rests. It operates 24/7 in our homes and through these devices that we carry in our pockets,” Nofziger said. “Victims' losses have escalated from hundreds and thousands to millions of dollars. Many believe it won’t affect them, but we know this is far from the truth.”

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​Nofziger, director of victim support at AARP Fraud Watch Network, was one of three expert witnesses who testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs, which is exploring ways the government can help combat fraud. 

​She said one of the biggest impacts of technology is the speed at which criminals can access people’s money. Cryptocurrency ATMs, for example, are increasingly used as a payment method of choice for criminals because they offer a quick and usually irreversible way to get their hands on someone’s cash.

​Though the FBI estimates that criminals defrauded Americans 60 and older out of $3.4 billion in 2023, Nofziger said the Federal Trade Commission puts the yearly loss closer to $137 billion, when considering fraud that goes unreported. 

​Nofziger said the financial devastation is only part of the story. Through her work with the AARP Fraud Watch Network Helpline, which provides support to victims, Nofziger told lawmakers she has witnessed the emotional and physical toll scams and fraud can have on older adults and their families. She shared the story of a healthy woman who became ill and died four months after she learned she lost her life savings in a romance scam.

“It is a tragic fact that these criminals wreak havoc and can drive individuals to premature death or even suicide,” Nofziger told the panel. 

The AARP helpline fielded more than 100,000 calls last year. Identity theft, business impostors, tech support scams, fraudulent sales and fake romances are among the most common types of fraud reported. Criminals most often reached out through a phone call, but other methods included email, text and social media.

In her written testimony, Nofziger called for a collaborative approach to combating fraud — one that brings together victims’ services providers, financial industry players and regulatory and law enforcement agencies. 

​She stressed that victims need compassion and support to encourage them to report these crimes. Many are reluctant to do so, she said, because of stigma and shame.

“Addressing fraud requires more than piecemeal solutions,” she wrote. “It demands a holistic and coordinated approach.”

Watch a recording of the hearing and visit our Fraud Resource Center to stay ahead of the latest scams.