Perfect.
My name is Kate Schroeder. I am a board member for the Canadian Network for the Prevention of Elder Abuse, which is also referred to as the CNPEA.
The CNPEA is a pan-Canadian network supported by leaders in the field of aging, research, health care, and elder abuse prevention and response, among other matters. The CNPEA connects people and organizations, fosters the exchange of reliable information and advances programs and policy development on issues related to preventing the abuse of older adults. We do this at local, regional, provincial-territorial and national levels through our knowledge-sharing hub at cnpea.ca.
We are pleased to have this opportunity to bring to light the challenges and impacts of fraud calls on older adults in Canada. The CNPEA's work focuses on gathering and disseminating adaptable resources, best practices and current research and policy development by Canadian expert stakeholders in order to increase our collective capacity to address and prevent the abuse of older adults. The following comments and recommendations are based on the extensive work of some of these experts.
Fraud calls are an attempt to deceive an individual to gain control over some aspect of that individual's life, whether financial or related to identity or some other aspect. These types of criminal attempts have an impact upon all Canadians, regardless of age, race, education or background. Vulnerable health, fledgling finances and a rarefied social network, among other factors, can heighten the risk of falling victim to potential scams, and this risk only increases as individuals age.
The rapidly shifting demographic in Canada is having impacts upon all aspects of our country and its economy. By 2031, some 23% of Canadians will be over the age of 65. By 2061 there could be 33% more seniors than children living in Canada. This shift is already presenting us with troubling new statistics in relation to fraud, and we expect these statistics to continue to increase as our population ages, since seniors are often identified as easier targets.
As of February 29, 2020, available statistics from the Canadian Anti-Fraud Centre indicate that so far this year there have been 7,804 reports of fraud or attempted fraud, and year to date over 4,119 Canadians have been confirmed victims of fraud, with more than $9.2 million lost.
According to the Canadian Anti-Fraud Centre, phone scams defrauded Canadians of an estimated $24 million between January 1 and October 31, 2019. Available statistics indicate that losses experienced by older adults account for as much as 25% of the total losses related to reported fraud and that this number is rising considerably.
The troubling aspect of these numbers is that they only reflect the fraud that's been reported. From available studies we know that the rate of fraud reported may be as low as 13%, often because older victims are afraid or ashamed to be deemed incompetent or otherwise deficient for falling prey to these calls.
Fraudulent calls are running rampant across Canada. Current scams include but are not limited to phone spoofing scams—numbers that imitate legitimate phone numbers—Canada Revenue Agency scams, grandparent scams, warrant calls, free reward calls offering trips and cruises, natural disaster scams, technology scams.
The grandparent scam, technology scam and the Canada Revenue Agency scam may be more likely to affect older adults. One major factor contributing to this is social isolation, which is considered a heightened risk factor for elder abuse in general. Isolated adults craving human connection, missing their family or lacking a support network may be more likely to fall for these scams and be more easily preyed upon.
The reasons that older individuals fall for these scams are often complex and interconnected. Potential risk factors that put individuals at greater risk may include the recent loss of a loved one; the lack of a support network; social isolation; economic insecurity; poverty; potential cognitive impairment; lack of awareness or understanding or the nature of these calls; and sophisticated, ever-changing technology.
Falling for these scams often leads to individuals feeling stigmatized. The complicated process of reporting and investigating these types of fraud lessens the chance of individuals completing the reporting process.
Some of the issues we've noticed that impede the reporting process are the fear of appearing incompetent; the fear of having their autonomy or decision-making abilities questioned; the fear of admitting to their children or loved ones that they made a mistake, as talking about money and technology often can be a fraught experience in families between parents and children; the potential lack of awareness of where to report; and, the potential to encounter ageism when trying to explain their situation.
What we are certain of is that these types of fraud calls are on the rise and are impacting all Canadians. Solutions must be unique and intergenerational in approach as well as collaboratively arrived at between private and public sectors, consumer groups, financial agencies and law enforcement. Some of the biggest keys to prevention and detection are awareness, education and easy access to reporting, as well as a respectful and informed approach to communicating with and supporting older victims.
Our overall recommendations from the CNPEA include the following: to develop awareness campaigns in all forms—social media, web based, print, TV—to help people, regardless of age, to understand the different scams and forms of fraud currently circulating; to support and promote bystander intervention training programs at financial institutions, law firms and other consumer groups; to support the development of programs not only to help Canadians navigate the complexities of reporting fraud but to markedly improve the access to support after reporting to prevent revictimization; to encourage the development of awareness and support programs that are accessible from home or other living arrangements; to improve access to regular and affordable transportation in rural areas to prevent social isolation and to facilitate access to necessary resources; and, ongoing proactive communication from various stakeholders—CRA, banks, telecommunication companies, senior service providers—to provide updates on current scams impacting older adults.
Thank you.