Aging in America News

| Q&A with EverSafe’s Howard Tischler and Liz Loewy

| EverSafe helps users defend themselves against financial scams. Cofounded by Liz Loewy (who launched the Manhattan District Attorney’s first Elder Abuse Unit) and Howard Tischler (a financial tech entrepreneur whose own mother was financially exploited and lost her life savings), the company deploys machine learning algorithms to examine transactions and patterns spanning different accounts and financial entities, flagging abnormalities such as irregular expenditures, duplicate charges, and missed payments. This interview has been edited for length and clarity.

Just how big a problem is elder financial abuse in this country?

Loewy: Elder fraud is a $60 billion problem in the U.S. Victims aren’t just seniors themselves, but include family members, close friends, and professionals who also suffer the effects of the exploitation. And despite the attention given to this epidemic by federal agencies, financial institutions are not doing enough to address what is potentially the worst health crisis impacting older adults – in decades. 

Tischler: Scams are fueled by siloed financial accounts and lack of communication within families. Adult children worry about infantilizing their older parents, and when they finally decide to ask a few questions – it’s too late. It’s clear to me that technology has the capacity to make a meaningful dent in resolving this problem if people get their heads out of the sand and realize that there are steps that can be taken to prevent being exploited.

Howard, what is your background and how did you and Liz come to start EverSafe?

Tischler: I’m a serial entrepreneur with a background in financial services and technology. My mother, Harriet Tischler, was exploited and lost her life savings. It started with a random phone call in which a telemarketer “sold” her an expensive auto-club service subscription. Only problem is that she was 80 years old, legally blind, and hadn’t owned a car in years. Others started taking advantage of her financially, as well. Around that time, I read about a high-profile elder fraud trial in New York and picked up the phone to call the prosecutor assigned to the case. Although Liz Loewy’s office couldn’t investigate my mother’s case, we did meet to discuss the problem and potential solutions. And EverSafe was born.

What trends are you seeing in elder fraud? 

Loewy: We are certainly seeing an increase in the number of older investors who become ensnared in bitcoin-related scams. And we routinely see an uptick in a variety of scams around the holidays. Fraudsters exploit increased e-commerce activity with deceptive phishing messages in which victims are asked to “confirm” phony purchases. Scammers are very good at what they do. The scheme often starts with a realistic-looking email in which an unwitting senior simply clicks a link to learn more. Exploiters now have the ability to enhance their tactics by mining social media, purchasing information like email addresses from cyber thieves, or using biometric data to impersonate victims through voice or video. This enables criminals who pursue classic fraud schemes, like the Grandparent Scam, to exploit AI. Voice recordings from social media can be cloned – making the scam even more realistic. The end result is that the scammers gain access to victims’ personal and financial information. In severe cases, they gain remote access to victims’ devices and financial accounts.

Are financial institutions doing anything to address this problem?

Loewy: Well, the good news is that many if not most banks, credit unions, and firms have recognized how widespread a problem this has become. They are educating their staff on the red flags of elder financial abuse and how to take steps to shut down a scam targeting one of their older customers. But there is so much more that can and should be done. Banks’ analytics do not account for customer’s individual spending patterns and the fact that one’s financial activity changes with age. And because of regulatory rules, they are only analyzing transactions within their own four walls and missing suspicious activity that happens across a customer’s accounts and institutions. Sophisticated scammers understand this and can do their dirty work for much longer without being discovered by one or more of the institutions involved. At EverSafe, we partner with these institutions so that they can offer their customers this kind of comprehensive monitoring. And in doing so, we also monitor credit data, and not just the credit report, as well. 

What’s the difference between credit data and a credit score, and why does that matter?

Tischler: Credit data is the raw information in a credit file and includes current as well as historical information. A credit score is a numerical representation of an individual’s creditworthiness at a single point in time. Credit data can be used to establish behavioral trends and can indicate potentially fraudulent activity or loss of financial capacity. In short, credit data is used in the calculation of a credit score but the algorithms underlying the computation of the credit score are for a very specific purpose that lies outside the identification of fraudulent activity that can be ascertained through the analysis of the raw credit data.

What role can trusted advocates play in your service? 

Loewy: When I was an elder fraud prosecutor, it was notable that a significant number of our case referrals did not come from financial services professionals. An equal number came in from an adult child of their older loved one. Although it is often said that banks are “the first line of defense” for detecting fraud, adult children have closer proximity and awareness of changes in their loved one’s behavior and financial situation. They are also likely to have more visibility as to their bank, investment, retirement and credit card accounts, and so have a closer view of anomalous activity. Our service encourages members to involve trustworthy family members and/or professionals in monitoring. They can designate one or more “trusted advocates” to serve as an extra set of eyes on their money and it costs them nothing to do so. 

What solutions would you recommend to reduce fraud?

Tischler: Liz and I are big believers that people need to fight fire with fire. There are many tech services out there that are simple to use – and perfect for caregivers who are willing to help keep an eye on things. These tools can shut down cyber fraud at its inception, and not weeks or months later. Consumers can do a great deal to protect themselves and loved ones and fill the gaps that banks aren’t addressing.