Older people and credit card fraud

With the ageing of the population, and increasing demand for individuals to be financially literate and self-sufficient, older Australians may find themselves at greater risk of fraud. Although the proportion of the elderly experiencing fraud is lower than for those aged less than 65 years, this is the crime they are most likely to experience and the effects can be devastating as the elderly are often not able to recoup the losses. This paper uses a series of simulation models to estimate the relative growth in fraud victims over the next 25 years. The modelling suggests that the prevalence of fraud could increase by up to 20 percent and the rate of growth in the number of older fraud victims will be much faster. A recent paper published by the institute has found that fraud has been estimated to be the largest component of money laundering (see T&I 342). Unfortunately, administrative data on the number of victims of fraud are significantly under-reported as most people do not report being a victim to the police. Victims do report to their financial institution, but there is no requirement for the financial sector to report on the number and type of fraud incidents they deal with each year.