AI Fights $28B Elder Fraud Crisis with Game Theory Detection

Elder abuse and financial fraud represent a massive crisis affecting America's senior population, with approximately one in ten Americans aged 60 or older experiencing some form of elder abuse during their lifetime while older adults collectively lose a staggering $28 billion annually to financial exploitation. This persistent problem has proven difficult to solve due to detection challenges, particularly in complex caregiving situations where multiple individuals may be involved. LogicMark Inc., a provider of personal emergency response systems and health communication devices with nearly two decades of experience, is tackling this issue head-on by leveraging its patented AI and game theory technologies to create a more reliable detection system for identifying potential abuse and fraud scenarios.

The company's innovative approach centers on detecting incentive misalignment in caregiving environments, which occurs when caregivers' goals conflict with their clients' best interests. Using AI and machine learning, LogicMark's system analyzes the activities, motivations, and behaviors of all parties involved in elderly care—including caregivers, family members, friends, and agencies—to establish proper alignment expectations. Through game theory applications, the technology simulates multiple scenarios to identify any misalignments between the various "players" and the person receiving care, ensuring the elderly individual's safety and security remain the primary focus. When discrepancies are detected, the system flags them for appropriate individuals to address, providing crucial oversight where human monitoring might fall short.

Real-world applications demonstrate the system's effectiveness in practical scenarios. In one example, when a hired caregiver fails to arrive at the scheduled time or doesn't complete the contracted hours, the technology recognizes this as an incentive misalignment and alerts the family. Another scenario involves detecting unusual spending patterns, such as when a family member's grocery purchases steadily increase from $150 to $280 weekly—potentially indicating personal purchases being charged to the elderly person's account. The system surfaces these issues for family resolution, whether the cause is innocent preference changes or concerning financial exploitation. Originally published on Benzinga and viewable on www.newmediawire.com, this sponsored content highlights how LogicMark's pioneering use of AI and machine learning patents represents a significant advancement in protecting vulnerable seniors from mistreatment and financial fraud in an increasingly complex care economy.