Financial Fraud and Alzheimer’s: An Unexpected Connection

by John WilsonDecember 19, 20246 minutes read

In today’s digital world, financial scams are rampant, and older adults are often targeted. According to a recent report by the Federal Trade Commission (FTC) to Congress, seniors lost over $1.9 billion to fraud in 2023. However, this figure represents only a fraction of the true cost of elder fraud, as most incidents go unreported. The FTC estimates that the total cost to senior consumers in 2023 could reach as high as $61.5 billion.

Historically, reports on such scams often blamed age-related declines in judgment as the primary reason seniors fall victim. However, a new study by the University of Southern California's Dornsife College of Letters, Arts and Sciences has revealed a deeper connection between changes in a specific area of the brain and susceptibility to financial exploitation. In other words, seniors who are more vulnerable to financial scams may exhibit brain changes associated with a higher risk of developing Alzheimer’s disease.

Researchers used high-powered MRI scans to examine the brains of 97 participants aged 50 and older. They focused on the entorhinal cortex, a region that serves as a relay station between the hippocampus (the brain’s learning and memory center) and the medial prefrontal cortex, which regulates emotions, motivation, and other cognitive functions.

In addition, they employed the Perceived Financial Exploitation Vulnerability Scale (PFVS), a standardized tool to assess participants’ financial awareness and sensitivity to poor financial decisions. Comparing participants' PFVS scores with the thickness of their entorhinal cortex, the team found a significant correlation: individuals more vulnerable to financial scams tended to have a thinner entorhinal cortex.

Previous studies have linked this brain region’s thinning to mild cognitive impairment, dementia, and molecular changes associated with Alzheimer’s disease. Researchers believe that assessing seniors' financial vulnerability could help identify those in the early stages of mild cognitive impairment or dementia (including Alzheimer’s disease). However, due to the study's limitations, financial vulnerability alone cannot confirm cognitive decline.

Further research, including long-term studies across diverse populations, is needed before PFVS can be considered a reliable cognitive assessment tool.

Early Symptoms of Alzheimer’s Disease

Here are 10 warning signs that could indicate early Alzheimer’s disease. If one or more of these symptoms are present, it is important to consult a doctor for a thorough evaluation:

1.Memory loss that disrupts daily life.

2.Challenges in planning or problem-solving.

3.Difficulty completing familiar tasks at home, work, or during leisure activities.

4.Confusion with time or place.

5.Trouble understanding visual images and spatial relationships.

6.New problems with words in speaking or writing.

7.Misplacing items and being unable to retrace steps to find them.

8.Decreased or poor judgment.

9.Withdrawal from work or social activities.

10.Changes in mood or personality.

How to Prevent Alzheimer’s Disease Symptoms

Although it is impossible to completely prevent Alzheimer’s disease, certain lifestyle changes can help reduce the risk and delay the onset of symptoms. Here are some effective preventive measures:

Keep Your Brain Active

Engage in mental activities like reading, solving puzzles, or learning new skills to maintain cognitive vitality.

Activities like learning a new language, playing an instrument, or exploring art can enhance multitasking abilities.

Maintain Physical Health

Exercise Regularly: Activities like walking, swimming, or yoga can improve cardiovascular health and promote better blood flow to the brain.

Follow a Balanced Diet: Adopt a diet rich in vegetables, whole grains, fish, and healthy fats (like olive oil and nuts) to reduce inflammation and support brain health. The Mediterranean diet is particularly beneficial.

Manage Chronic Conditions

Properly manage conditions such as diabetes, high blood pressure, and high cholesterol, which are linked to increased Alzheimer’s risk.

Maintain a healthy weight to reduce the negative impact of excess fat on the brain.

Foster Social Connections

Regularly engage with family, friends, and community groups to build emotional support and social engagement, reducing stress and improving cognitive functions.

Improve Sleep Quality

Ensure adequate and restful sleep, as it is essential for brain repair and clearing out waste products. Chronic insomnia or sleep disorders can increase Alzheimer’s risk.

Reduce Stress and Anxiety

Long-term stress, anxiety, or depression can negatively impact brain health. Practices such as relaxation techniques, meditation, deep breathing, or therapy can help alleviate stress.

Avoid Smoking and Excessive Alcohol Consumption

Smoking and excessive drinking can harm brain blood flow and nerve health, increasing the risk of Alzheimer’s.

Regular Health Checkups and Early Screening

Schedule regular cognitive assessments, especially if there is a family history of Alzheimer’s disease, to detect potential issues early and take timely action.

How to Recover from Elder Fraud and Minimize Losses

Elder fraud is an unfortunate reality that targets older individuals due to their perceived vulnerability. If you or someone you know has been a victim, here’s a step-by-step approach to effectively address the situation and recover losses:

Recognize the Fraud Early

Identifying the fraud as soon as possible is crucial to limiting financial damage. Common signs include:

●Unusual or unauthorized bank transactions.

●Pressure to send money or share personal information.

●Suspicious calls, emails, or letters.

If fraud is suspected, act quickly to prevent further exploitation.

Report the Fraud Immediately

Reporting the incident to the proper authorities increases the chances of stopping the scammer and recovering funds. Here’s who to contact:

●Local Law Enforcement: File a police report to document the fraud.

●Bank or Credit Card Provider: Inform financial institutions to freeze accounts, reverse transactions, and investigate fraudulent activity.

National Fraud Hotlines

●In the U.S., report to the Federal Trade Commission (FTC) via reportfraud.ftc.gov.

●In the UK, contact Action Fraud at 0300 123 2040.

For other countries, check for national fraud reporting agencies.

Notify Relevant Organizations

Different types of scams may require specific reporting:

●Social Security Scams: Contact the Social Security Administration (SSA).

●Tax Scams: Report to the IRS or relevant tax authority.

●Tech Support Scams: Inform software companies like Microsoft, Apple, or Google.

Additionally, file a report with consumer protection agencies such as the Better Business Bureau (BBB) or equivalent.

Freeze Credit and Monitor Accounts

To prevent further damage, take proactive measures:

●Place a credit freeze with credit bureaus (Experian, TransUnion, and Equifax in the U.S.).

●Set up fraud alerts to monitor for unusual activity.

●Regularly review bank statements and credit reports for errors.

Seek Legal Assistance

For significant financial losses, consulting an attorney specializing in elder law or financial fraud can provide guidance. They can:

●Advise on pursuing legal action.

●Help navigate disputes with banks or financial institutions.

Leverage Support Networks

Elder fraud can be emotionally distressing. Involve family, friends, or support groups to provide guidance and reassurance. Additionally, many nonprofits, such as AARP’s Fraud Watch Network, offer resources for elder fraud victims.

Prevent Future Scams

Educating seniors about common scams can prevent recurrence:

●Avoid sharing personal information over the phone or online.

●Be wary of unsolicited offers, urgent requests, or “too good to be true” deals.

●Use caller ID and avoid unknown numbers.

Pursue Refunds or Compensation

Depending on the scam type and payment method, there may be ways to recover funds:

●Bank Transfers: Request a reversal through the bank.

●Wire Transfers (e.g., Western Union): Some services have compensation programs for fraud victims.

●Credit Cards: Dispute charges with the card issuer.

●Online Platforms: Contact customer support on platforms like PayPal, eBay, or Amazon to report fraud.