Earlier this month, a 74-year-old woman in Hyderabad lost ₹37.9 lakh — his retirement savings — to cybercrime scammers, who told him his account was linked to a money laundering scheme. About a day later, a 63-year-old man, also from Hyderabad was a victim to a stock scam orchestrated via WhatsApp and, lured by the promise of substantial 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 increasing in number. targeting the older population.

Are retirees/pensions 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 Economyexamines whether or not older adults are aware of their cognitive decline and whether misperceptions about it affect their financial decision-making.

The article, authored by Fabrizio Mazzonna and Franco Peracchi, used U.S. demographic data and documents that older adults tend to underestimate their cognitive decline. It then concludes that those who experienced severe cognitive decline without being aware of it were more likely to experience wealth losses compared to those who were aware of it or did not experience severe decline.

In India, where 3.8 million people live with dementia (this number is expected to rise to 11.4 million by 2050), and where financial resources may be scarce or hard-earned for millions of older adults, declining cognition and poor financial decisions may be areas which require special attention.

Older adults who were once high achievers may continue to function in the same way as before, often without realizing that their cognitive abilities are no longer what they used to be, says Ennapadam S. Krishnamoorthy, a neuropsychiatrist and founder of the Buddhi Clinic, Chennai. . “The ability to ‘change positions,’ as it is called, begins to decline, meaning 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 impulsivity, could potentially lead to mistakes or poor judgments in financial matters,” he says. Although this weakening of frontal executive function 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 are unaware of a gradual decline in their cognitive functioning. “Most older people consider it a normal part of aging. It is often their caregivers/children who bring it to the attention of the doctor,” says VS Natarajan, a Chennai-based geriatrician. This can make them easy targets, even in small financial transactions, where their forgetfulness can be used against them, he explains.

Studies have shown, Dr Krishnamoorthy says, that distress and disability from dementia are lower in countries like India – perhaps due to the fact that many older people continue to live with families , which often leads to cognitive decline revealed much later. than it would be if they lived alone. But this situation, he notes, is changing, with the aging population and a growing number of older people living 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 generally prey on older people who live alone, those whose children may live in another city or country. They are threatened with all sorts of consequences for getting their money transferred – a kind of emotional blackmail. Fraudsters also exploit their loneliness,” says Sandeep Mittal, Additional Director General of Police, Cyber ​​Crime Wing, Tamil Nadu. The other scam, that of stock trading, uses their desire to make money easily and quickly, to lure them sometimes over months, until in the end, a large sum of money is lost. , he said.

Although cyber and other scams are an area where older people are vulnerable, many are very often targeted by their own families for financial gain, says Anupama Datta, head of policy research and development. advocacy at HelpAge India, a non-profit organization that works for underprivileged elderly residents. “They are persuaded to give up their authority over a bank account, for example, or their rights to property, even if they are not cognitively disabled. If their cognition declines, it makes them more vulnerable to financial abuse. This is very common, especially in cases where one of the partners is no longer and the elderly person is alone,” she says.

Not all of these cases are even reported, she says. For many, especially those who live alone, they don’t know how to report fraud and, if it’s abuse within the family, that makes it more difficult.

What can we do? While digital literacy campaigns are carried out by the police in several states, including Prime Minister Modi in his Mann Ki Baat earlier this year urged citizens to be cautious about cyber frauds, more needs to be done in terms of educating citizens on what exactly to do, what government helplines are available, to establish a link between helplines and the police and strengthen the response system when such incidents are reported, says Ms. Datta. Doctors say older people can come in for examinations if they feel their memory or skills are slowing, and caregivers should be aware of these signs and seek help as soon as possible if necessary.