How To Guard Against Senior Frauds and Scams

It seems as if not a day goes by without a news story about an elderly person being victimized by fraudsters and scammers. Some of the news reports are horrific, detailing how seniors lost most or all their life savings through elaborate, illegal schemes orchestrated by criminals who prey upon older adults.
Senior Financial Abuse Is Rampant
The Federal Trade Commission (FTC) reports that in 2022, seniors were scammed out of over $8 billion dollars, a 44% increase over the prior year. The actual amount seniors lost to scammers is estimated to be even higher since many seniors fail to report these crimes because they are unaware that they have been defrauded or ashamed of letting anyone know they were victimized.
Seniors are taken advantage of by scammers more often than younger age groups because older adults tend to be more trusting and less knowledgeable of how the criminals operate. Scams directed towards seniors typically involve fake charities, prizes, sweepstakes, lotteries, and computer tech support. Scammers are convincing because they gather personal information about seniors that is readily available on the internet and use it to impersonate family members and friends. Some fraudsters clone the phone numbers of a family member to make it appear that a loved one is calling and use artificial intelligence to mimic their voice.
Protecting Seniors From Fraudsters
The best line of defense against elder fraud is trusted family members, friends, and caregivers. They understand a senior’s vulnerabilities and know best about what preventative steps should be taken to prevent financial abuse. Seniors who are not tech savvy need to be informed and educated about internet scams and ideally, their use of the internet should be monitored regularly. Also, have frank discussions with your elder loved ones about not responding to unknown or unsolicited emails, text messages, and phone calls. Have them sign up for the free National Do Not Call Registry which can insulate them from many but not all potential scams.
Understand the warning signs of financial fraud. If a loved one is hesitant to talk about finances or is suddenly having trouble meeting ordinary household expenses, inquire about the reasons why this is happening. Many seniors who have been victimized are reluctant to talk about their finances because they feel shame over their mistake. While it might not remedy what has already occurred, knowing how money is flowing in a senior’s bank and investment accounts can prevent further financial abuse.
Take Prompt Action If A Fraud Has Happened
If a fraud has occurred, notify authorities immediately so they can identify, track, and prosecute the offenders. Contact your local police department and log on to the FTC’s online fraud reporting portal at ReportFraud.ftc.gov. You should also report scammers to the AARP Fraud Watch Network Helpline and their toll-free number is 877-908-3360.
One of the most effective ways of protecting seniors against financial abuse is by them naming someone as a Trusted Contact for their financial affairs. Laws and regulations on how to do this can vary from state-to-state and between financial institutions, but once it is done, effective safeguards will be in place to protect against scammers. A Trusted Contact can check a senior’s financial statements and transactions online to assure that nothing is out of the ordinary and if there are suspicious irregularities, they can alert the senior to the problem and take corrective action.
Elder financial abuse is a serious problem today. It can compromise their financial security, fracture family relationships, and negatively impact their physical and mental well-being. The best tactic to prevent it is by being proactive so that you can prevent scams against the elderly before they happen.