Elderly South Africans are especially vulnerable to high-impact financial and impersonation scams, particularly where loneliness, trust and retirement savings are involved. Leslie Greyling, a financial advisor at Brenthurst Wealth Fourways, says older people are particularly vulnerable to scams and fraud, although those more used to technology tend to be more exposed because they use it more often.
Sharon Knowles, founder and chief executive of Da Vinci Forensics, says South Africa is facing a “quiet crisis” in which grandparents, retired neighbours and ageing parents are being targeted. Criminals do not simply exploit technical unfamiliarity but also loneliness, trust, financial anxiety and deeply ingrained social values, she says. According to the South African Revenue Service, scams can have severe financial consequences for individuals and the economy as a whole.
Why Scammers Target Older Adults
Perhaps the most powerful tool in a cybercriminal’s arsenal is social isolation. Many South African seniors live alone, while children may have relocated to other provinces or emigrated abroad. Social circles often become smaller with age,” Knowles says. A ringing phone or a WhatsApp message can represent an important moment of human interaction – a behavioural trait that criminals understand.
Romance scams and “grandchild in distress” scams are so effective because they exploit emotional attachment, compassion and the instinct to protect loved ones, says Knowles. Studies consistently identify loneliness and social isolation as significant contributing factors to fraud victimisation of older people, she adds. The South African Banking Risk Information Centre provides valuable information on how to prevent and report financial crimes.
Consequences of Financial Fraud
The South African Banking Risk Information Centre’s latest Crime Statistics Report for 2024 shows financial crime continued to rise sharply, with an unprecedented 86% increase in digital banking fraud incidents and a 74% rise in related losses, reaching R1.888 billion. This highlights the need for increased awareness and education on financial security and scam prevention.
Here are some tips to help prevent financial fraud:
- Be cautious of unsolicited calls or messages
- Verify the identity of callers or senders
- Keep personal and financial information secure
- Monitor bank accounts and credit reports regularly
By being aware of the risks and taking steps to protect themselves, older adults can reduce their vulnerability to financial scams and maintain their financial security.
