Sep 19, 2022
Every year, millions of consumers are affected by fraud and scams—especially elderly Americans. These incidents have been growing at an alarming rate and have assumed troublingly creative tactics: a variety of identity theft schemes; phone scams like callers claiming they’re with the IRS, Social Security or company customer service departments; lottery or sweepstakes scams; or callers pretending to be family members in financial distress. The Federal Trade Commission estimates the cost of financial fraud reached nearly $6 billion last year, and the real cost is likely much higher because many victims are too ashamed to come forward and report the incidents. But you don’t have to be a victim. In today’s episode, Kathy Stokes, Director of Fraud Prevention Programs with AARP, talks about her mission to educate older adults on the risks that fraud represents to their financial security—and what they can do about it. A nationally recognized expert in consumer fraud issues, Kathy will describe how she and her team have expanded AARP’s leadership in this arena, including the creation of a new victim support program and a multi-year campaign to end the use of gift cards in fraud. Besides offering some strategies for people to protect themselves, she’ll talk about the formation of a national effort to fundamentally transform how our society addresses consumer fraud. In fact, a major study by the AARP Fraud Watch Network, which teamed up with the Financial Industry Regulatory Authority Investor Education Foundation, found that our “victim-blaming” culture exacerbates the deep sense of shame and low self-esteem felt by financial fraud victims, shifting the focus away from perpetrators and allowing these horrific crimes to flourish. But these practices can shift, Kathy argues, and she’ll explain how AARP and the FINRA Foundation are seeking to engage institutions—financial, law enforcement, legislative and judicial— the media, and the general public to drive long-term change in how victims of financial fraud are treated.