GREY MATTERS | PULL-OUT SUPPLEMENT
June 2012 | S3

•SENIORS ARE AN ATTRACTIVE TARGET FOR FRAUDSTERS
WHO SCAM INTERNET USERS INTO PARTING WITH MONEY
AND INFORMATION BY DONALEE MOULTON
WHEN GOING ONLINE GOES

OFFSIDE

t’s easy to get duped online. It may be
even easier for seniors to be taken
advantage of on the Internet.
Age doesn’t change the nature of
the threats people face online, but it
may increase vulnerability.
“The risk to seniors is actually the
same as the risks to any online users
in that we may unsuspectingly reveal
our personal information allowing for any-
thing from fraudulent use of our credit card
information to identity theft,” said Jeanne
Desveaux, a lawyer in Halifax who practices
elder law. “Seniors, however, also may be a
special targeted population or prey in that
some individuals actually attempt to lure
them in with offers of services, such as roof
repairs and snow removal, to gain access to
their property or homes.”
Seniors may also be less savvy about
operating in an online environment, said
Lisa Majeau Gordon, a member of MNP
LLP’s Investigative and Forensic Services
in Edmonton.
“They tend to believe what they read on
the Internet or what is sent to them is legit-
imate. They may be easier to convince to
part with their money to charities, religious
institutions, foreign individuals, online
product sales…many of which may not be
legitimate organizations.
“They make attractive targets for online
criminal organizations,” she added, “They
often have liquid funds available, may be
somewhat isolated from warnings about
Internet fraud, and have lax or non-existent
computer security controls—and may be
too embarrassed to report crimes once
they’ve occurred.”
Cyberspace is a lucrative landscape for
scammers. According to the Canadian Anti-
Fraud Centre, more than 2,400 reports of
fraud amounting to almost $4.7-million were
logged last December. A recent survey con-
ducted by Visa Canada found that, while
seniors are the least likely to share personal
information through social media, they are
the most likely group to send personal credit
card information via e-mail.

“The senior may be dependent on the indi-
vidual for services and fearful of losing the
assistance. The dependency issue then enters
into the risk equation,” said Desveaux. “The
senior then allows the individual to do online
banking services on their behalf or the senior
leaves their access codes in an unsecured loca-
tion or their computer in an area where care
providers coming into the senior’s home may
access it without the knowledge of the senior.”
Part of the issue is generational, said Gor-
don of MNP, a CA-designated specialist in
investigative and forensic accounting. “Sen-
iors are trusting, and part of their personality
as a generation is to be polite.”
This opens them up to a greater risk of
financial abuse, she added. “Seniors may be
manipulated by family and friends because
they have a fear of rejection and loneliness.
They can be made to think that if they say
no, they will be ostracized. As well, they may
trust repayment promises made to them
that never come to fruition or believe any-
thing in print to be legitimate, such as
investment opportunities.”
The Canadian Securities Administrators
recently demonstrated how easy it is to be
deceived online. Results of a fraud awareness
campaign conducted by regulators across the
country confirmed that Canadians remain
vulnerable to online investment fraud.
“Our recent campaign showed us that
people are willing to click on online ads and
open e-mails touting investment opportun-
ities from unknown sources,” said Bill Rice,
CSA chairman and CEO of the Alberta Secur-
ities Commission in Calgary.
To illustrate how scam artists use online
tools to lure unsuspecting investors, CSA set
up a website for a fictitious company, Blue-
Hedge Investments, and drew people to it
through online ads and social media promo-
tions. Anyone who tried to enter personal
information or clicked “Invest Now” was
redirected to a real website with tools and
See Online Page S5