Protecting A Loved One From Financial Scams

As older adults navigate the financial landscape in their golden years, they often become targets of scams that seek to exploit their savings and assets. Financial fraud aimed especially at older adults is a growing problem, but awareness and vigilance can keep people of all ages from falling victim to these schemes.

Why are older adults common targets of financial scams? First, they are often sitting on a well-funded nest egg—and fraudsters know it. Second, older generations are typically more trusting and polite. They are less likely to hang up on a scammer. The older generations grew up in a time when the phone was a trusted form of communication. They are more likely to listen longer to a stranger’s call, giving the scammer enough time to hook them into their scheme. And unfortunately, falling for a telephone scam can itself be a warning sign for cognitive decline. A person with Alzheimer’s or other dementia might not be able to drive or work, but they can easily answer a phone call.

Here are some of the ways scammers try to grift older people from their savings.

Social Security impersonation: Scammers posing as government officials call seniors claiming there are issues with their benefits. They request personal information, including Social Security numbers, bank details, or payment to resolve the alleged problems.

Medicare scams: Fraudsters offer fake services or products, claiming they are affiliated with Medicare. Seniors are asked to provide their Medicare numbers, leading to identity theft and unauthorized billing.

Grandparent scams: Grandparents receive calls from someone pretending to be a grandchild in distress, often claiming they need money urgently for an emergency. These scammers prey on grandparents’ love for their family. These criminals often open with “I’m in trouble, Grandma” to try and get an older adult to respond with the name of a grandchild, such as “Is that you, Katie?”

How can we help keep our older loved ones from falling for an act of financial abuse? The key, say advocates for older adults, is awareness. Make sure your loved one is familiar with the ways that these scams work, and give them the following tips for safer telephone communications.

Be skeptical of unsolicited communication: Whether it’s a phone call, email, or letter, be cautious when you receive unsolicited requests for personal or financial information. Legitimate organizations won’t contact you this way. Remind them that the IRS and Social Security Administration, among other government agencies, do not communicate with people via telephone.

Verify identity: If someone claims to be from a government agency or a company, ask for their name, department, and contact information. Disconnect and independently verify their identity before providing any information.

Don’t share personal information: Never share sensitive personal or financial details like Social Security numbers, Medicare numbers, bank account information, or credit card numbers unless you’ve initiated the contact and trust the recipient. Consider changing your standard greeting from “this is Mary” to the more anonymous “hello.”

Emotional Impacts Of Scammers

Protecting our seniors from financial scams is crucial! Falling victim to a scam can lead to a snowball effect of problems that can wear away at you and your property. At Right at Home-NW Oklahoma City, we can provide Scam Prevention training that can help identify potential elder scams.

Scammers can drain savings and retirement funds, leaving older adults struggling to make ends meet. Almost as bad as the financial effects, falling for scams can cause high stress, anxiety, and even shame, affecting mental health. People that fall victims may become distrustful, isolating themselves from friends and family. And once scammers have a foot in the door, they can build a relationship and target victims repeatedly while working to keep them isolated.

Protecting Your Loved One's Phone

One of the most important steps to prevent scams is to scam-proof your loved ones' phones:

• Teach them about common scams and warning signs.
• Use reputable antivirus security and anti-scam apps to detect and block fraudulent activity.
• Make sure to enable transaction alerts on bank accounts to monitor suspicious activity.
• Install call-blocking apps or enable "Do Not Disturb" mode during vulnerable hours.
• Ask to see their phones to regularly check in, review messages, and offer assistance when needed.

Scam Awareness

Equally important is to try to stay aware of new scams and methods.

Subscribe to Scam Alert Services – These services are provided by organizations like the FTC, AARP, and your local law enforcement agencies. These alerts will notify you about emerging scams in your area. Many communities offer workshops, seminars, and educational programs about senior scams. Attend these events to learn more and connect with local resources.

Maintain Social Connections – Encourage your loved ones to maintain social connections. Isolation can make seniors more vulnerable to scams. Regular communication can help detect unusual or suspicious activity.

Monitoring Initiative – Review bank and credit card statements regularly with your loved ones. Look for any unauthorized or suspicious transactions.

Report Scams Immediately

To report elder scams, you should consider contacting the following authorities and organizations:

• Local Law Enforcement, start by reporting the scam to your local police department or law enforcement agency.
• Adult Protective Services, APS agencies are responsible for investigating and addressing cases of elder abuse, neglect, and financial exploitation. Contact your state's APS agency to report elder scams.
• Federal Trade Commission (FTC): The FTC is a federal agency that handles consumer complaints and tracks scams. You can report elder scams to the FTC online at www.ftc.gov/complaint or by calling 1-877-FTC-HELP (1-877-382-4357).
• AARP Fraud Watch Network. AARP offers a Fraud Watch Network that provides information on common scams and allows you to report scams online. Visit their website at www.aarp.org/fraudwatchnetwork for more information.
• Internet Crime Complaint Center: If the scam involves online or cybercrimes, you can report it to the IC3, a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center. Visit www.ic3.gov to file a complaint.
• Medicare Fraud Control Units, If the scam is related to healthcare fraud or Medicare, contact your state's MFCU. They investigate and prosecute cases of healthcare fraud, including those targeting seniors.

When reporting an elder scam, provide as much information as possible, including details of the scam, any contact information for the scammers, and any financial transactions or losses incurred. Prompt reporting is essential to take action against scammers and protect seniors from further harm.

Clawing Back Stolen Money

Recouping money lost to a scam can be challenging, but there are some steps that seniors and their families can take to attempt recovery. However, success is not guaranteed, and it often depends on numerous factors, including the nature of the scam, the jurisdiction, and whether the scammers can be identified. Here are some potential recourse options:

• Contact Law Enforcement: Report the scam to your local law enforcement agency, the Federal Trade Commission (FTC), or other relevant authorities.
• Contact Your Bank or Financial Institution: If money was transferred or withdrawn from a bank account due to the scam, contact your bank or credit union immediately. They may be able to help stop or reverse the transaction if reported promptly.
• Report to Credit Card Companies: If a credit card was used in the scam, contact the credit card issuer to report the fraud and dispute the charges.
• Insurance Policies: Some homeowners or renters’ insurance policies offer coverage for financial losses due to fraud or scams.
• Consult with an Attorney: In some cases, consulting with an attorney who specializes in elder law or consumer protection may be advisable. They can provide guidance on potential legal recourse and options for recovering lost funds.

It is important to note that the chances of recovering lost funds from scams can be low, especially if the scammers are operating from overseas or using untraceable methods. Prevention and early detection are often the best ways to protect against financial scams targeting seniors. Encourage seniors to be cautious, verify information, and seek advice from trusted sources to avoid falling victim to scams in the first place.

Informed, Vigilant, and Cautious

Financial scams targeting older adults are both widespread and devastating. By staying informed, vigilant, and cautious, seniors can protect themselves from falling victim to these schemes. Additionally, fostering open communication with trusted family members and seeking advice from financial professionals can provide an extra layer of protection in preserving one’s hard-earned assets and financial security in retirement.