While the number of cyber fraud incidents is increasing, what is more worrisome is how easily criminals are duping senior citizens. A 75-year-old man lost over Rs11 crore in Mumbai's second biggest cyber fraud of 2024 after sending money to different bank accounts to invest in the stock. In another incident, a 77-year-old woman from south Mumbai was held in 'digital custody' for over a month in what is believed to be the city's longest case of cyber fraudsters posing as law enforcement officials and lost Rs3.8 crore.
According to a
report from Indian Express , the 75-year-old man's mobile number was added to a WhatsApp group that had the name of a prominent financial services company and, subsequently, to another group where the criminals 'encouraged' him to 'invest' money through their app.
"He was very happy to see a huge profit in his account in the trading company's app. However, when he tried to withdraw the profit, his request was declined. He then contacted Anya Smith (the moderator of the WhatsApp group), seeking assistance in withdrawing his profit. Ms Smith then told him that he would have to pay 20% service tax on the entire amount. Despite the complainant paying this 'service tax', he was asked to pay more money towards other charges to withdraw money. This made him feel he was being cheated," the report says, quoting police officials.
The second incident, as
reported by Economic Times is what has now become the classic
modus operandi of digital arrest. It involved a call about a parcel containing five passports, a bank card, four kilos of clothes, MDMA drugs, among others, being sent in her name to Taiwan. Her case was transferred to a 'police officer' and was systematically kept in digital arrest. Initially, she was asked to transfer Rs15 lakh from her account for verification. The money was returned to her to gain her trust.
"They then asked her to send all her money from her and her husband's joint accounts. Over a period of time, she transferred Rs3.8 crore into six bank accounts. She suspected something was amiss when she did not get her money back while the accused kept demanding more funds for taxes and to 'clear' the money while keeping her under 'voluntary surveillance'. She called her daughter, who told her she was being conned and asked her to approach the police. She dialled the 1930 cyber helpline. Investigators have frozen six bank accounts of the accused," the newspaper says.
There are several reasons why senior citizens are easily duped by cybercriminals. Seniors face a combination of technological, emotional and financial vulnerabilities that make them prime targets for cyber fraud.
One primary issue is that senior citizens are not born and brought up with technologies and gadgets. They are basically digital migrants and are not familiar with digital tools, online security practices, or common cyber threats. This lack of technological literacy makes it harder for them to recognise suspicious emails, websites, or phone calls, making them more susceptible to scams.
Add to this the trusting nature of seniors. The older generation tends to have a higher level of trust, especially when communicating with strangers. This can make them more likely to believe in fraudulent schemes, such as unsolicited communication like phone calls, WhatsApp messages or emails claiming to offer assistance or rewards.
Many seniors also experience social isolation, especially those living alone. Fraudsters often exploit this loneliness by pretending to be friends, relatives, or even charities, which can increase the likelihood of seniors falling for scams. The woman, who was digitally arrested and lost Rs3.8 crore, was staying with her husband while her two children live abroad.
Senior citizens living on fixed incomes or relying on retirement savings are also financially more vulnerable. Fraudsters often target this group by offering false and 'guaranteed' investment opportunities, fake prize winnings or urgent financial assistance requests that seem enticing to anyone with limited financial resources.
Fraudsters often use emotional tactics, such as creating a sense of urgency, like pretending a loved one is in danger or appealing to seniors' desire to help others. This emotional manipulation can cloud judgement and lead to impulsive actions, like sending money or sharing personal information with unknown persons.
Also, as we have seen, there is a cognitive decline among several senior citizens. As we age, we may experience cognitive decline, including memory issues or slower processing speeds. This impairs the ability to critically assess information and make informed decisions, making it easier for scammers to take advantage of aged people.
Another major concern is the reluctance of seniors to report fraud or crime. Many seniors feel embarrassed or ashamed if they fall victim to a scam, making them less likely to report the crime. This allows fraudsters to continue targeting them and others as their actions go unreported.
When it comes to digital security and privacy protection, everyone is at risk. Not just digital migrant seniors, even youngsters or digital natives are not fully aware of the importance of online privacy or the need to use security measures such as strong passwords, multi-factor authentication (MFA), or encrypted communication tools. It leaves them open to fraudsters who exploit weak security practices.
As we have been witnessing, with the rapid increase in the availability of newer tools, cybercriminals are using new and sophisticated methods to dupe people. Cyber fraud tactics are evolving rapidly and seniors may not always be aware of the latest scams. Since they may not actively follow technology news or updates on security threats, they can be less prepared to recognise newer forms of fraud like phishing emails, fake tech support calls, or identity theft schemes.
While there are several measures seniors can take to protect themselves from becoming a victim of cyber fraud, they need awareness, education, and information on protective measures.
If you are in Mumbai, you can attend a special and free seminar organised by Moneylife Foundation on "Learn How to Protect Yourself from Cyber Crime Threats" on 17 December 2024 at IMC, Churchgate, Mumbai. You can learn about several actionable insights and tools to protect yourself and your loved ones from experts like advocate Dr Prashant Mali, who is a distinguished cyber law and security expert and Nandkumar Saravade, a former IPS officer, who is also CEO of Reserve Bank Information Technology Pvt Ltd (ReBIT).
It is also surprising how Banks' computer system are generating OTPs for high value online transactions when there are cappings in amunts not more than some thousands per customer per recipients per day. If this is so why the customer is at loss than the concerned Bank ? This surprises me.