Elder Scams: A 400% Increase in Money Loss and Control

Introduction

Elder scams have become a significant concern, with the FBI reporting a staggering 400% increase in incidents involving financial losses and control. These scams often target vulnerable seniors, exploiting their trust and lack of familiarity with modern digital threats. In this comprehensive guide, we’ll delve into the types of elder scams, warning signs, preventative measures, and what to do if you or a loved one falls victim to such schemes.

Understanding Elder Scams

What Are Elder Scams?

Elder scams are fraudulent schemes specifically targeting older adults to steal their money or personal information. These scams can take various forms, from phone and internet fraud to in-person deceit.

Why Are Seniors Targeted?

Seniors are often targeted due to their perceived financial stability, trustworthiness, and sometimes limited knowledge of current technology. Scammers exploit these traits to gain access to their funds and personal details.

Common Types of Elder Scams

1. Phone Scams

Robocalls and Spoofing

Scammers use automated calls or spoofed numbers to impersonate legitimate organizations, urging seniors to provide personal information or make payments.

Grandparent Elder Scams

In this scam, fraudsters pose as a grandchild in distress, asking for immediate financial help, often claiming an emergency situation.

2. Internet Scams

Phishing Emails

These emails appear to be from trusted sources, tricking seniors into clicking on malicious links or providing sensitive information.

Tech Support Scams

Scammers pose as tech support agents, convincing seniors that their computer is infected and requiring payment to fix non-existent issues.

3. Investment Scams

Ponzi Schemes

Scammers promise high returns with little risk, convincing seniors to invest large sums of money, which are then used to pay previous investors.

Fake Charities

During times of crisis, scammers set up fake charities, preying on the generosity of seniors who want to help those in need.

4. Health-Related Scams

Medicare Scams

Fraudsters pose as Medicare representatives, asking for personal information or charging fees for fake services.

Prescription Drug Scams

Seniors are offered low-cost drugs that either don’t exist or are counterfeit, resulting in financial loss and health risks.

Recognizing the Warning Signs

Unsolicited Contacts

Be wary of unsolicited calls, emails, or visits, especially those requesting personal information or payment.

Urgency and Pressure

Scammers often create a sense of urgency, pressuring seniors to act quickly without verifying the legitimacy of the request.

Too Good to Be True

Offers that seem too good to be true, such as high investment returns with no risk, are often fraudulent.

Requests for Personal Information

Legitimate organizations will never ask for sensitive information like Social Security numbers or bank details over the phone or email.

Preventative Measures

1. Educate Yourself and Loved Ones

Stay informed about common scams and educate older family members about the risks and warning signs.

2. Use Technology Wisely

Caller ID and Blocking Features

Use caller ID to screen calls and block unknown numbers to reduce the risk of phone scams.

Email Filters

Set up email filters to block suspicious emails and reduce the risk of phishing attacks.

3. Secure Personal Information

Shred Documents

Shred financial documents before disposing of them to prevent identity theft.

Password Protection

Use strong, unique passwords for online accounts and update them regularly.

4. Verify Before Trusting

Always verify the legitimacy of unsolicited contacts by calling the organization directly using a verified number.

5. Monitor Financial Accounts

Regularly check bank and credit card statements for unauthorized transactions.

6. Trusted Legal Advisor

Contact your trusted legal advisor at Snake River Law to verify if a request is legitimate or a scam.

What to Do If You’re a Victim of an Elder Scam

1. Report the Scam

Contact local law enforcement, the FBI, or the Federal Trade Commission (FTC) to report the scam.

2. Secure Your Accounts

Change passwords, notify your bank, and consider placing a fraud alert on your credit report.

3. Seek Support

Reach out to support groups or counseling services for emotional assistance.

4. Educate Others

Share your experience to help others avoid falling victim to similar scams.

Case Studies – Elder Scams

A Real-Life Example

John, an 82-year-old retiree, received a call from someone claiming to be his grandson, urgently needing money for bail. Trusting the caller, John wired $5,000 before realizing it was a scam. This example highlights the importance of verification before acting.

Successful Prevention

Mary, a 75-year-old widow, received an unsolicited email about a lucrative investment opportunity. Suspicious, she consulted her financial advisor, who confirmed it was a scam, saving her from potential financial loss.

Legal and Financial Resources

Legal Assistance

Seek legal advice if you believe you’ve been scammed, as there may be options to recover lost funds.

Financial Counseling

Financial counselors can help seniors manage their finances and safeguard against future scams.

Conclusion

Elder scams are a growing concern, with significant financial and emotional impacts on seniors. By understanding the types of scams, recognizing the warning signs, and taking preventative measures, we can protect ourselves and our loved ones. Remember, staying informed and vigilant is the key to safeguarding against these fraudulent schemes.

FAQs – Elder Scams

1. How can I recognize a scam?

Look for unsolicited contacts, urgent requests, and offers that seem too good to be true. Always verify the legitimacy before responding.

2. What should I do if I receive a suspicious call?

Hang up immediately and report the call to local authorities or the FTC. Do not provide any personal information.

3. Can I recover my money after being scammed?

It’s possible to recover lost funds by reporting the scam promptly and seeking legal assistance, though it can be challenging.

4. How can I protect my elderly parents from scams?

Educate them about common scams, set up phone and email filters, and regularly monitor their financial accounts for suspicious activity.

5. Where can I report an elder scam?

You can report scams to local law enforcement, the FBI, and the Federal Trade Commission (FTC).

Author

Mark R Petersen is an Idaho estate planning attorney with 20 years of experience creating family estate plans that empower families to succeed. Mark focuses his practice on trust planning helping clients achieve their goals, avoiding probate and unnecessary court fees, and ensuring ease of transition when a loved one passes. See more about Mark here.