The Internal Revenue Service Criminal Investigation (IRS-CI) division is responsible for protecting senior taxpayers from fraud schemes.  On World Elder Abuse Awareness Day held on June 15, IRS CEO Frank Bisignano explained that the IRS is making substantial efforts to protect senior taxpayers.

IRS Criminal Investigation Chief Jarod Koopman stated, "Criminals who target elderly Americans often think they can hide behind fake names, fake stories, and complex financial trails, but that is exactly where IRS-CI is strongest."

Koopman continued by explaining that the IRS understands the importance of protecting seniors. Koopman stated, “We know how devastating these crimes can be, and no one should ever feel ashamed for being targeted."

The IRS has seen an increase in fraudsters targeting seniors. This past year, the IRS-CI started 97 new elder fraud investigations. During the past five years, the IRS-CI conducted 255 elder fraud investigations and reviewed $736 million in alleged fraud. The IRS regularly prosecutes elder fraud cases and reported that 97% of the prosecutions resulted in a federal prison sentence that averaged four years.

There are several specific schemes or methods that are used by criminals to target seniors.

1. Impersonating the Government –A scammer will claim to be from the IRS or another government agency and threaten you with immediate arrest.
2. Emergencies – The fraudster claims a child, grandchild or other relative is in great danger. If you do not send money immediately, they could be seriously injured or even lose their life.
3. Romance Scams – Many criminals have great skills in building online relationships. They create a romantic relationship with the individual. These romance relationships frequently include pictures of attractive individuals and will eventually result in efforts to solicit funds from the victim.
4. Lottery Fraud – The targets are told that there is a multimillion-dollar lottery that they have just won. To receive the prize, they must make a payment in cryptocurrency to cover various fees.
5. Investment Fraud – The fraudster will promise a high-return and low-risk investment opportunity that is certain to produce an excellent return. These scammers often use Ponzi schemes or cryptocurrency strategies.
6. Charity Scams – The scammer creates a fake nonprofit with a name similar to that of a legitimate charity. These scams are usually created following a major disaster or tragedy. The scammer attempts to reach a vulnerable senior who has empathy for the disaster victims.

There are several red flags that should be warnings to potential victims. A scammer will demand immediate action. The payment will be through a gift card, wire transfer or cryptocurrency. You should take caution if you receive a phone call, email or text from an unknown person. If you answer the phone and are asked for personal or financial information, you should hang up. Many scammers also use threats of arrest or legal action to frighten you into immediate action.

You should know the steps to protect yourself. If someone claims to be from a government agency or bank and asks for a payment, hang up and contact the agency or bank directly. Do not take immediate action. Slow down and think through the situation. Visit with a trusted family member or financial advisor before any decision involving finances. You should regularly check your bank accounts, investment accounts and other accounts with online software.

If you have fallen victim to a scam, the first step is to recognize that many seniors have fallen victim to similar scams. These scammers are becoming increasingly sophisticated and many use artificial intelligence (AI) to increase the probability of a successful scam. You should stop any contact with the scammer. If there has been a transfer from your bank account, you should immediately notify the bank or other financial institution. You can call local law enforcement or an IRS-CI field office. Be sure to preserve all records, emails, screen shots or phone numbers.

Editor's Note: One of the best defenses against elder fraud is regular conversations with family members and advisors. They can help you by monitoring financial accounts and give you counsel about relationships with people online. As fraudsters become more skilled with AI, your risk will increase. It is important to take steps to protect yourself.