Fraud, such as investment and real estate schemes that often target the elderly, cost Hoosiers more than $115 million last year.
Indiana residents reported 34,854 cases of fraud in 2024 with an average loss of $380, according to the U.S. Federal Trade Commission. Imposter scams were the most common with 11,851 reported across the state.
Hoosiers reported 9,306 cases of fraud in the first quarter, with losses of $2.96 million or $279 per person.
A 75-year-old LaPorte County resident reported in February that she lost $200 after someone posing as a friend from out of state emailed her to request Amazon gift cards, according to a police report.
"The best tips are to not provide anyone information on bank account and not to provide payment for anything via gift cards. If they believe they are getting contacted from a relative or friend, confirm it is them prior to sending any money," said LaPorte County Sheriff's Office Captain Andrew Hynek.
The Federal Trade Commission estimates that elderly Americans lost $354.9 million to fraud in the first quarter of this year. About 29% of Americans between the ages of 60 years old and 69 years old ended up losing money to scams in the first quarter. Investment scams cost seniors an average of $20,000 per report.
The National Sheriffs' Association adopted a resolution this week asking for more resources to help police shield consumers from financial scams that cost Americans billions of dollars a year, such as by posing as police, debt collectors or romantic interests. The resolution calls for more resources for scam monitoring, consumer education, detection and prosecution, as well as for stronger penalties.
“Sheriffs all over the country are dealing with increases in both the number of scams and amount of money these criminals are stealing from Americans,” said National Sheriffs' Association 2nd Vice President and Collin County Texas Sheriff Jim Skinner.
Skinner said scams often target the elderly and involve identity deception. Currently, the most common scam is for callers to pose as law enforcement officers, telling people they missed jury duty and there's been a warrant issued for their arrest. They give them a choice of turning themself in or paying the fine, which they often request through Bitcoin.
"It's an epidemic," Skinner said.
The Collin County Sheriff's Office aggressively pursues such cases regardless of where the perpetrator lives and has recovered more than $1 million so far.
"Law enforcement would never ask you for money," Skinner said. "If callers ask you for money, you need to hang up now."
Investment scams cost seniors nationwide an average of $158.6 million in the first quarter, according to the Federal Trade Commission. About 77.5% of the 2,329 seniors who reported being targeted for investment scams lost money.
The Indiana Secretary of State's Office warns about several common investment schemes, including affinity fraud that preys on trust in which con artists sell fraudulent investments to groups like churches or communities of new immigrants, hedge funds that issue private offerings that are not registered with the Securities and Exchange Commission and oil and gas ventures that capitalize off the rising cost of gas.
Other common investment scams include Ponzi or pyramid schemes that rob Peter to pay Paul by taking money from new investors to repay previous investors, unregistered securities and viatical investments in which an investor buys life insurance policy benefits for less than face value to receive the full policy amount when they die.
Typical real estate investment schemes involve flipping distressed properties or seminars marketed as alternatives to traditional retirement strategies like stocks and mutual funds, according to the Indiana Secretary of State's Office. They often involve hard-money lending that finances real estate investments outside of the traditional bank loan.
Seniors can take several steps to protect themselves, such as by checking with the Securities and Exchange Commission and the Indiana Securities Division to see if investment opportunities should be registered, according to the Indiana Secretary of State's Office. They should ensure that they are given a written prospectus with clear and accurate information that they can review with an independent investment advisor, that investments do not seem too good to be true and that pie-in-the-sky returns are not being promised. Promises of zero risk or guarantees are considered to be red flags.
The Indiana Secretary of State's Office advises that seniors should check out securities agents, such as by finding out if they're a registered broker/dealer, where the business is located, how long it's been in business and if any complaints have been filed against them in the past.
Seniors can also check on the securities agent by calling the Indiana Securities Division at 1-800-223-8791.
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