The Economics of Fraud: How Scammers Operate

Today, let's go beyond the statistics and talk about the economics of scammers—how do they operate?

Follow the Money

Every scam has one thing in common: profit.

Fraudsters aren't random—they analyze who is most likely to respond, how quickly, and through which channel. Seniors lose more money per scam than any other group because scammers exploit trust, routine, and urgency.

Why Seniors Are Targeted

Stable finances: Retirement income and savings make them attractive targets.

Predictable habits: Fixed routines make timing easier for scammers.

Courtesy bias: Politeness can override suspicion.

Isolation: Fewer second opinions means easier persuasion.

How Scammers Operate

Scammers work like businesses—tracking conversion rates, updating scripts, even A/B testing messages. The rise of AI voice cloning and spoofed numbers means these "fraud operations" now mimic customer service centers.

"If it sounds too good to be true… someone's making money off it."

"They didn't steal my money first—they stole my confidence." — Anonymous Victim, 2024 FTC Report

Breaking the Business Model

Fraud only thrives when it's profitable.

When families and facilities detect scams early—through tools like MyProtection.AI—the economics change. False calls go unanswered. Emails get flagged. Profits drop.

The best way to stop a scammer is to make it cost them.