By admin 
Early this month, a 74-year-old woman in Hyderabad lost ₹37.9 lakh – her retirement savings – to cybercrime scammers, who told her her account was linked to a money laundering case. Just a day or so later, a 63-year-old man, also from Hyderabad became a victim to a stock trading scam organized through WhatsApp, and, lured by the promise of significant profits, lost ₹50 lakh.
These are not isolated incidents: they are part of a growing number of sophisticated cybercrimes in India, and worryingly, they appear to be happening with increasing frequency. aimed at the elderly population.
Are retirees/pensioners more vulnerable to financial fraud? And does this have anything to do with cognitive decline? A research paper published earlier this year in the Journal of Political Economyinvestigates whether or not older people are aware of their cognitive decline, and whether misconceptions about this influence their financial decision-making.
The paper, by Fabrizio Mazzonna and Franco Peracchi, used population data from the United States and documents the fact that older people tend to underestimate their cognitive decline. suffer asset losses compared to those who were aware or did not experience a serious decline.
In India, true 3.8 million people live with dementia (this number is expected to reach 11.4 million by 2050), and where financial resources for millions of seniors may be scarce or hard-won, declining knowledge and misguided financial decisions may be areas that need attention.
Seniors who were previously high performers may continue to function in the same way as before, often not realizing that their cognitive abilities are not what they used to be, says Ennapadam S. Krishnamoorthy, neuropsychiatrist and founder of Buddhi Clinic, Chennai. . “The ability to change sets, as it is called, begins to decline, which means there is a loss of cognitive flexibility, making it more difficult for them to adapt to new situations and assess risks. This, combined with an increase in impulsiveness, could potentially lead to mistakes or poor judgment in financial matters,” he says. While this weakening of frontal executive functions is a normal part of aging, it can be accelerated in someone with a neurodegenerative disorder, he adds.
What can make these situations worse is that many older adults may not be aware of a gradual decline in their cognitive functioning. “Most older people consider it an essential part of growing older. It is often their caregivers/children who bring it to the doctor’s attention,” says VS Natarajan, a geriatrician based in Chennai. This can make them easy targets even in small financial transactions, where their forgetfulness can be used against them, he explains.
Studies have shown, says Dr Krishnamoorthy, that the problems and disability associated with dementia are lower in countries like India – possibly due to the fact that many older people continue to live with families, which in turn often leads to cognitive decline comes to light much later. than it would be if they lived alone. But this situation, he notes, is now changing as the population ages and an increasing number of seniors live alone.
When it comes to being a victim of financial scams, social factors play a role in how and why older adults are targeted.
“Scammers tend to target elderly people who live alone, people whose children may live in another city or country. They are threatened with all kinds of consequences if they want to transfer their money – a kind of emotional blackmail. Fraudsters are also taking advantage of their loneliness,” said Sandeep Mittal, Additional Director General of Police, Cyber Crime Wing, Tamil Nadu. The other scam, stock trading, takes advantage of their desire to make money easily and quickly, luring them in sometimes over the course of months until a large sum of money is ultimately lost,” he says.
While cyber and other forms of scams are an area where seniors are vulnerable, many often target their own families for financial gain, says Anupama Datta, head of policy research and advocacy at HelpAge India, a non-profit organization that works for underprivileged seniors . “They are persuaded to give up their authority over, say, a bank account, or their rights to a property, even if they are not cognitively challenged. As their cognition declines, they become more vulnerable to financial abuse. This is very common, especially in cases where one partner is no longer there and the older person is alone,” she says.
Not all of these cases are even reported, she says. Many, especially those who live alone, do not know how to report fraud, and when it comes to abuse within the family, things become more difficult.
What can be done? While digital literacy campaigns are underway are fed by police in several states, and most notably Prime Minister Modi in his Mann Ki Baat earlier this year citizens urged To be cautious about cyber fraud, more needs to be done in educating citizens on what exactly to do, what government helplines are available, linking helplines to the police and strengthening the response system when such incidents are reported. Says Mrs. Datta. Doctors say seniors can come in for checkups if they think their memory or abilities are declining. Healthcare providers should be aware of these signs and seek help as quickly as possible if necessary.
Published – Nov 12, 2024 4:52 PM IST