Scams and Fraud: How to Protect Elderly Loved Ones

Scams and Frauds and the Impact on the Elderly

The National Council on Aging reports that “financial scams targeting seniors have become so prevalent that they’re now considered “the crime of the 21st century.” Why? Because seniors are thought to have a significant amount of money sitting in their accounts. Financial scams …(are) devastating to many older adults and can leave them in a very vulnerable position with little time to recoup their losses.”

Awareness of Common Scams and Frauds

You can help protect your elderly loved one from scams and frauds by making them aware of common fraud schemes:

The National Council on Aging has produced a list of the Top Ten Financial Scams Targeting Seniors
The FBI publishes a list of Common Fraud Schemes
The Federal Trade Commission publishes a Scam Alerts web page
AARP’s Fraud Watch Network can send you email updates about new fraud schemes and has a Scam-Tracking Map listing specific scam attempts by region

Identity Theft
Identity theft occurs when someone assumes your identity to perform a fraud or other criminal act. Criminals can get the information they need to assume your identity from a variety of sources, including by stealing your wallet, rifling through your trash, or by compromising your credit or bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information.

Learn more about identity protection in our article “Identity Theft: How Protect Your Elderly Loved One”.

Financial Abuse by Family, Friends, or Caregivers
Financial abuse is a common type of elder abuse in which the perpetrator uses or misuses a senior’s money or property for personal gain. Unfortunately, it is often perpetrated by someone the victim knows. Awareness is the first step to protecting an older loved one; seniors and family members may not realize they are vulnerable, which increases the risk.

Tips for Avoiding Scams and Frauds

The National Crime Prevention Council offers these tips for avoiding scams and frauds in their publication “Seniors Can Stop Scoundrels and Scams” which is included in the attached files.

It’s shrewd, not rude to hang up on a suspicious telemarketer
Don’t give personal information to people you don’t know unless you initiated the contact
Don’t let yourself get pressured into a verbal agreement or signing a contract
Be skeptical of online charitable solicitations and other online offers
If interested, ask to receive the information in the mail and check to be sure the company is legitimate
Never agree to pay for products or services in advance
Get estimates and ask for references on home repair offers and other products or services
If you suspect fraud, contact your local law enforcement agency immediately

Signs of Fraud
The American Banker’s Association offers advice about how to Protect the Elderly from Financial Abuse:

Plan ahead to protect your assets and to ensure your wishes are followed. Talk to someone at your financial institution, an attorney, or financial adviser about the best options for you.
Shred receipts, bank statements and unused credit card offers before throwing them away.
Carefully choose a trustworthy person to act as your agent in all estate-planning matters.
Lock up your checkbook, account statements and other sensitive information when others will be in your home.
Order copies of your credit report once a year to ensure accuracy.
Never give personal information, including Social Security Number, account number or other financial information to anyone over the phone unless you initiated the call and the other party is trusted.
Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
Never rush into a financial decision. Ask for details in writing and get a second opinion.
Consult with a financial adviser or attorney before signing any document you don’t understand.
Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
Pay with checks and credit cards instead of cash to keep a paper trail.
Feel free to say “no.” After all, it’s your money.
You have the right not to be threatened or intimidated. If you think someone close to you is trying to take control of your finances, call your local Adult Protective Services or tell someone at your bank.
Trust your instincts. Exploiters and abusers often are very skilled. They can be charming and forceful in their effort to convince you to give up control of your finances. Don’t be fooled—if something doesn’t feel right, it may not be right. If it sounds too good to be true, it probably is.

The American Banker’s Association also offers warning signs of financial exploitation from scammers, family members, or others:

Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals.
ATM withdrawals by an older person who has never used a debit or ATM card.
Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
New “best friends” accompanying an older person to the bank.
Sudden non-sufficient fund activity or unpaid bills.
Closing CDs or accounts without regard to penalties.
Uncharacteristic attempts to wire large sums of money.
Suspicious signatures on checks, or outright forgery.
Confusion, fear or lack of awareness on the part of an older customer.
Refusal to make eye contact, shame or reluctance to talk about the problem.
Checks written as “loans” or “gifts.”
Bank statements that no longer go to the customer’s home.
New powers of attorney the older person does not understand.
A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation.
Altered wills and trusts.
Loss of property

What to Do if You Suspect Fraud or Financial Exploitation

What should you do if you suspect financial abuse? The American Banker’s Association recommends:

Talk to elderly friends or loved ones if you see any of the signs mentioned here. Try to determine what specifically is happening with their financial situation, such as a new person “helping” them with money management, or a relative using cards or credit without their permission.
Report the elder financial abuse to their bank, and enlist their banker’s help to stop it and prevent its recurrence.
Contact Adult Protective Services in your town or state for help.
Report all instances of elder financial abuse to your local police — if fraud is involved, they should investigate.

You can warn others about scams by reporting them on the AARP Fraud Watch Network Scam Tracking Map.

How the Geriatric Care Managers and Daily Money Managers at Care is There Can Help

If you are a long distance caregiver, it can be difficult to know if your loved one is being approached by a scammer. At Care is There, we:

Educate our clients about common scams and fraud
Help our clients implement best practices to avoid scams and fraud
Visit our clients often and pay close attention for the signs that fraud could be taking place
Investigate potential signs of fraud and take appropriate next steps

We also offer related services that can help you and your elderly parent, including:

Implementing safeguards to help prevent identity theft, including reviewing credit reports
Reducing unwanted solicitation through Do Not Call and Do Not Mail lists
Helping with mail management and bill paying, including reconciling bank statements and reviewing them for unusual transactions.

Contact Care is There Geriatric Care Management by calling 800.434.1633 or by emailing us at Info@CareisThere.com

Resources for Protecting Elderly Loved Ones from Scams and Frauds

Next Steps

Concerned that your elderly loved one may be vulnerable to scams and fraud? Contact Care is There today for a free consultation!

Charlottesville Area: 434.326.5323
Shenandoah Valley: 540. 246.0211
Toll Free: 800.434.1633
Email: Info@CareisThere.com

Files

StopScams.pdf