Protecting Seniors from Financial Scams: A Comprehensive Guide
Introduction
Each year, our vulnerable senior communities fall victim to financial scams that prey on their trusting nature, welcoming spirits, and potential knowledge gaps regarding new technologies. According to a report by AARP, “Older Americans who were exploited by family, fraudsters, and others in recent years suffered an average loss of $34,200.” Identifying and combating the most common sources of elderly fraud has never been more important.
The Most Common Elderly Fraud Scams
Organizations like the US Department of Justice, FBI, and National Council on Aging (NCOA) note a consistent rise in schemes that deprive seniors of their hard-earned income and savings. Here are the most prevalent scams targeting our elderly communities, how they work, and what to do about them.
The Grandparent Scam
This scam involves someone posing as a loved one, typically a grandchild, who makes an urgent plea for financial help and requests not to contact the parents out of embarrassment. It's common in both email exchanges and phone calls.
How It Works
A fake caller might start a phone call with, “Hi Grandpa, guess who?” When the grandparent guesses a family name, the caller establishes a fake identity and builds on it, aiming to get "grandpa" to discreetly send money via bank transfer.
Steps to Help
Install Security Software: Consider an internet firewall, antivirus, and anti-spyware software. Keep this software updated.
Be Cautious with Email Attachments: Avoid opening suspicious attachments.
Use Security Questions: Create personal security questions like, “Just to verify it’s you, what’s your mother’s birthday and the name of your new puppy?”
The Medicare Scam
Seniors over 65 qualify for Medicare, making them prime targets for scammers posing as health insurance reps. They might ask to verify account info, pay a non-existent balance, or set up fake clinics to bill Medicare fraudulently.
How It Works
Scammers contact seniors, claiming to be from Medicare, and request their Medicare number or other personal information.
Steps to Help
Never Share Your Medicare Number: If someone calls asking for it, say you will call them back and use the number on your Medicare card.
Reject Offers for Gifts or Money: Scammers often ask for your Medicare number to process a "gift."
Keep Accurate Records: Track all healthcare appointments and verify statements.
Contest Giveaway Fraud
Receiving an email or phone call about a sweepstakes or lottery win can be exciting, but be wary when asked for “fees and taxes.” Scammers might also send a check to deposit, then call asking for a clearance fee before the funds have cleared.
How It Works
Scammers lure victims with fake winnings, then request upfront payments for processing fees or taxes.
Steps to Help
Use a Separate Email for Sweepstakes: Create an additional email address exclusively for contest entries.
Verify Tax Information: In the US, prizes over $600 require tax verification. If this step is skipped, it’s likely fraud.
Check Legitimacy: Verify the organization before sharing any personal information.
The Funeral and Cemetery Scam
This scam involves someone reviewing recent obituaries, then posing as a debt collector for the deceased, even using extortion to demand payment of fake debts. Less reputable funeral homes may also exploit grieving families by pushing unnecessary services at inflated prices.
How It Works
Scammers contact families of the deceased, claiming there are outstanding debts that need immediate payment.
Steps to Help
Understand Finances: Fully navigate the finances of your deceased loved one before making any payments.
Educate Yourself on Funeral Processes: Learn about necessary services and costs to avoid being overcharged.
What To Do If You Suspect Fraudulent Activity
If you believe you or a loved one may be the victim of an elderly scam, it's crucial to report the incident. Start by contacting your local FBI field office and consider submitting an online tip about a person or organization you suspect of fraudulent activity.
Conclusion
Financial scams targeting seniors are a growing concern. By staying informed and vigilant, you can protect your loved ones from falling prey to these schemes. Remember, always verify the source of any financial request and consult trusted resources if you suspect fraud. Together, we can safeguard our senior communities from these harmful activities.
