Protect Yourself From Elder Fraud And Financial Exploitation
Each year, millions of seniors fall victim to some type of financial fraud or confidence scheme, including romance, lottery and sweepstakes scams just to name a few. Criminals often target seniors because they usually have financial savings, own a home and have good credit — all of which make them attractive to scammers. Additionally, seniors may be less inclined to report fraud because they don’t know how, or may be concerned that their relatives will lose confidence in their abilities to manage their own affairs. With the senior population growing and being frauded out of billions of dollars each year, elder fraud remains a serious problem.
Common Elder Fraud Schemes
Scammers targeting elder citizens may employ one or more of the following types of schemes:
Romance scam - Criminals pose as interested romantic partners on social media or dating websites to capitalize on their elderly victims’ desire to find companions.
Tech support scam - Criminals pose as technology support representatives and offer to fix non-existent computer issues. The scammers gain remote access to victims’ devices and sensitive information.
Grandparent scam - A type of confidence scam where criminals pose as a relative — usually a child or grandchild — claiming to be in immediate financial need.
Government impersonation scam - Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to provide funds or other payments.
Stock purchase manipulation - Fraudsters may try to guide you to buy specific stocks and invest specific amounts. Never follow investment directions from someone you don’t personally know.
Sweepstakes/charity/lottery scam - Criminals claim to work for legitimate charitable organizations to gain victims’ trust. Or they claim you have won a foreign lottery or sweepstakes, which they can collect for a “fee.”
Home repair scam - Criminals appear in person and charge homeowners in advance for home improvement services that they never provide.
TV/radio scam - Criminals target potential victims using illegitimate advertisements about services such as reverse mortgages or credit repair.
Family/caregiver scam - Relatives or acquaintances of elderly victims take advantage of them or get their money.
Protect yourself by becoming familiar with the fraud tactics and warning signs:
Be wary of unsolicited calls and messages.
Don't click on links or download files from unsolicited texts, emails or social media messages.
Be suspicious of calls from companies you don't recognize.
Don't give out personal information, such as your Social Security number, to unsolicited requests.
Guard your Medicare card like a credit card.
Don't post personal information like addresses, birthdates and daily activities on social media.
Monitor your credit reports.
Report suspected fraud to your financial institution, the local police or the District Attorney's office.
Call the National Elder Fraud Hotline at 1-833-372-8311
File a complaint with the FBI's Internet Crime Complaint Center (IC3)
Report the scam to the FTC at ReportFraud.ftc.gov
Create a shared verbal family password or phrase that only you and your loved ones know.
Designate someone you trust as your financial power of attorney, and appoint a trusted contact who can review your bank accounts and investments. Giving someone you trust view-only access enables them to monitor your transactions but not conduct business or access the funds.
Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action.
Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
Sign up for a service that tracks your bank accounts, investments and credit cards and can detect suspicious activity, such as Eversafe or LifeLock.
Stay in touch with family members and friends you trust.
If you need to hire in-home caregivers, strongly consider going through a bonded agency that does rigorous screening.
If you are not the person being cared for but are concerned about your loved one, get to know the caregivers to be sure you trust them. If you have any uneasy feeling about a caregiver, speak to the agency's management about your concerns.
Elder financial fraud is not merely a statistic. It’s a reality for too many vulnerable individuals. Everyone should educate themselves and their families about these issues to prevent the loss of money, property and valuable personal information. By taking proactive steps, we can create an environment of protection that ensures that seniors live without fear of being defrauded.
Source information: Federal Bureau of Investigation