Rising Elder Fraud Losses Highlight Need for Personal Cyber Insurance

Cyber fraud against individuals over 60 is rapidly increasing, with losses reported to the FBI’s Internet Crime Complaint Center (IC3) reaching $3.4 billion in 2023—an 11% rise from 2022. Older adults, who hold a significant share of U.S. assets, are highly targeted by scammers, especially through call center/tech support and phishing schemes. Such attacks often result in significant financial losses, with some victims losing more than $100,000.

As digital threats become more sophisticated, including the rise of deepfakes and social engineering, Personal Cyber Insurance (PCI) is emerging as an essential tool for protecting individuals from cyber extortion, fraudulent transfers, and identity theft. While Identity Theft Protection (ITP) focuses solely on stolen identity risks, PCI covers a broader range of cybercrimes, offering financial reimbursement for compromised devices and fraudulent activities. Cyber insurance is becoming a critical layer of security, particularly for the elderly, who are more susceptible to scams due to their reliance on technology and their higher-than-average wealth.

The increasing digitization of daily life, combined with a growing elderly population, underscores the need for enhanced cyber protection. Insurers are responding by expanding coverage options to address these new risks, offering tailored policies to safeguard individuals against the evolving cyber threat landscape.