Protecting Seniors from Scams

Financial exploitation of seniors is a serious problem.  It’s hard to pinpoint exactly how much money senior citizens are scammed out of each year, but various studies estimate the financial losses at between 3 billion to 37 billion annually.  The reason why it’s difficult to calculate losses accurately is many older adults are ashamed to report being scammed or they have yet to realize they are victims of rip off artists.

Elder females are especially prone to being victimized because they typically outlive their spouses and inherit assets that include insurance policies, real estate, and financial portfolios.  Most widows were not involved in managing the complexities of such assets so when it falls in their lap, they are ill-prepared to protect their money from professional scammers.

Safeguard Against Rip Offs

The criminals who victimized senior citizens know how to gain their confidence.  Seniors tend to be trusting of people and scammers are skilled in using fraudulent and exploitive tactics to take advantage of their easily deceived nature.  When this doesn’t work, these scheming opportunists will defraud seniors by any means necessary including bullying them and making false threats of legal actions that frighten them into submission.

Seniors battling diseases such as Alzheimer’s and Dementia are more easily defrauded because of their diminished mental capacities.  What’s especially disturbing is that some scammers are not unknown faces in the crowd.  In some situations, seniors have been defrauded by people they have trusted over the years such as predatory financial advisors, accountants and even family members.

Put Financial Controls In Place

So what can be done to protect seniors from being financially victimized?  One smart thing to do is to consolidate a senior’s liquid assets into one account that is regularly monitored by a trusted family member.  To access the account, two signatures will be required – the senior and the family member.  This added level of security will discourage most scammers and financial institutions are happy to work with the senior and their family member to implement security mechanisms that deter financial victimization.

Limiting the amount of spending a senior can do is also recommended.  For instance, you can replace a senior’s credit cards with a debit card that has a predetermined limit on daily spending such as $300-$400.  That’s the most money a senior can access on any given day.  This spending limit is sufficient for daily living expenses and it is an effective buffer against more serious, costly scams that often wipe out a senior’s savings.

Monitor Access To Seniors

It’s also wise to monitor people who perform necessary services for seniors such as contractors, attorneys, financial advisors and accountants.  Verify their reputations by checking for any complaints filed against them with your local Better Business or state Consumer Protection Bureaus.  When a contract is signed that you suspect is questionable, know that you have the right to cancel it.  The Federal Trade Commission Cooling Off Rule gives buyers a three-day window to back out of any contract signed in a home or workplace, so don’t hesitate to invoke this protection if you suspect something is amiss.  Some states have weaker and stronger protections in place, so check with authorities whenever necessary.

Many scam artists contact seniors over the telephone.  For this reason, it’s advised to utilize technologies that limit a scammers phone access to seniors.  Websites and cell phone apps that block robocalls can be a very effective deterrent and many such protections are available at little or no cost to users.

Educating seniors on what type of information that they can and cannot provide to someone is critical to their financial protection.  Tell them to never, ever give out their social security, credit cards or banking numbers to anyone under any circumstances.  If someone is making such a request, instruct your senior family member to alert you immediately so that you can evaluate and verify the person, company or agency asking for the information.  If meeting with a financial advisor or accountant, always accompany your senior family member of the appointments so that you have a clear understanding of the services being provided.

Have Financial Conversations

Finally, visit or speak with your senior family member regularly so that you can have financial conversations.  Inquire about any expenditures they have recently made, the reasons for them and to whom they made the payments.  Many criminal opportunists work their scams over days or even weeks, so having frank conversations about money can help identify any rip offs that may be in progress before any real damage is done.  If you identify such activity, immediately notify authorities who can lend assistance and take corrective action.

Scams that victimized unsuspecting seniors are not going away.  What can go away is the opportunity for scammers to take advantage of a senior who is diligently watched over by a family member or trusted friend who is knowledgeable and aware of such fraudulent activities.