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Elder Money Scams on the Rise – Here’s What You Can Do
The stories are heartbreaking. Local and national news stations report the accounts of older Americans losing large sums of money – sometimes all they own – to fraudsters, conmen, and thieves. The details vary a bit by story, but the main point of each is the same: older Americans are more likely to trust people they encounter on the phone, by mail, or through the internet, and the odds of them losing money to scams goes up as they age. While a certain number of cases against the elderly are happening by relatives and caregivers who have earned the trust of an older person, many more are by strangers and catch their victims completely by surprise.
New Laws to Reduce Risk
NextAvenue reports that elder financial abuse happens to over 5 million seniors a year, and it’s gotten the attention of lawmakers. This past May, Congress passed a comprehensive Economic Growth, Regulatory Relief, and Consumer Protection Act that contained much of the language contained in the previously promoted Senior Safe Act of 2017. In addition to allowing financial institutions to train their staff on how to spot elder financial scams, the bill extends immunity from liability to those who report suspected exploitation to the authorities. While banks are usually supposed to keep your financial details private and secure, these new regulations allow exceptions if disclosure is designed to help prevent an older customer from being scammed.
The new laws may be a much-needed step in the right direction, but what can the average person (who doesn’t work in a bank) do to protect their older friends and family from becoming victims of financial abuse? Scams can come in many forms, and it may be difficult at times to know which ones are likely to harm your loved ones. Here are some basic tips for those who are concerned that their senior friends or family could be at risk.
Stay Educated on Scam Trends
Imagine it: you’re an older senior, and you get a phone call from someone in a hushed voice. You can barely make out the sound, but it’s someone claiming to be your granddaughter on the phone. They need help. The only way to get them away from those that have kidnapped her is to wire money and not report it to the authorities.
Sounds like a movie, right? It’s just one of the many disturbing scams being done to seniors across the U.S., and when these frauds happen successfully, the victim is often too scared or ashamed to come forward. This is just one type of the more horrific ways criminals are getting access to older American’s hard-earned assets. There are many, many more kinds – with new ones being created each month!
Did you know that older Americans have had hundreds of millions of dollars stolen in recent years through the following types of scams:
- Fake romances and relationships
- Lottery ticket and sweepstakes fraud
- Grandparent and DNA detection schemes
- IRS imposter fraud?
Encourage your older loved one to watch the news, and do your part to research new scam types before they happen. Because younger loved ones are more likely to use social media tools – where most of today’s breaking news is shared first – you might know about a new type of scam weeks or even months before a senior loved one hears about it. For a list of the most updated scams and fraud types, check the Federal Trade Commissions website, sign up directly for the latest scam alerts, or subscribe to news from your state’s Attorney General. (The Texas website has some very good info on how to spot a scam!)
Ask Questions
Our senior loved ones can be proud people. They’ve managed to live long, full lives and in an independent manner. It can be embarrassing to talk about a potential scam, especially if they’ve already given money to a scammer or are considering doing it again. The only way to know if your senior is at risk is to stay in constant communication. Ask them if they’ve received any strange phone calls lately. Get permission to look through important mailings they have gotten from financial institutions. Let them know the proper procedure for what to do if they feel unsafe or have questions about a conversation they’ve had. If you don’t ask them directly, you may never know they need help.
Share Stories
People learn best through storytelling, and our older loved ones are no different. If you can, help them understand the dangers of specific types of scams – along with how to respond to scammers – through accounts of people like them. Let them know that there is nothing to be ashamed of if they fall victim to a scam, and that it’s OK to ask for advice if they are unsure of any call or letter they receive. Give specifics for fraud accounts in your local area so that they know how common it can be and that it is not in any way a reflection on their intelligence, capabilities, or skills. Bad people are to blame – period!
Report Fraud
Finally, if you suspect that your friend or relative has been the victim of a scam or continues to be targeted even after saying “no,” it’s wise to let the authorities know. While these scammers are often not caught, the FBI needs to know so that they can build a case and have something to go on when they find suspects. Encourage your loved one to stand up for themselves – and others – by reporting what has happened promptly. If your senior has already given money to a scammer, contact the banking authorities and any other institutions involved in the financial transaction, and let them know. While they may not be able to reverse the damage, any info they receive can go toward helping them stay alert to future frauds.
With information on scams becoming more widely available, it’s important for loved ones to stay on top of what’s going on with new kinds of fraud schemes and communicate this info to their senior friends and families. See how you can get involved in community programs to educate and inform. While the local authorities, Justice Department and FBI are doing more through mass sweeps of those who are known for causing the most damage to consumers through scams, there is still much work to do. By protecting those who are closest to us, we have the best chance of stopping the ones we love from being taken advantage of financially.
