Understanding Elder Fraud
There are several types of elder fraud but most of the common types that are found today are:
· Telephone scams: These scams often involve the caller claiming to be from a government agency or a legitimate business and demanding money. A common example of telephone scams is bad actors pretending to be IRS agents or insurance companies.
· Email scams: These scams often involve the sender sending an email that appears to be from a legitimate source, such as a bank or credit card company. The email will often contain a link that, when clicked, will take the victim to a fake website that looks like the real website. Sometimes, the links themselves will be malicious and allow hackers to gain access to the user's computer.
· In-person scams: These scams often involve the scammer posing as a friend, family member, or contractor. The scammer will then ask the victim for money or to sign documents that give them access to the victim's finances.
Warning Signs
There are a few red flags that may indicate that an elderly person is being targeted by fraudsters. Make sure to be aware and take note if the following events occur:
• The person suddenly becomes more secretive about their finances.
• They start making large purchases that they cannot afford.
• They are asked to pay for something with a gift card or wire transfer.
• They are pressured to act quickly or to not tell anyone about the transaction.
Prevention Strategies
If you want to help protect your elderly loved ones from these fraudulent activities, there are a few strategies you can use. The first thing you should do is talk to your loved ones about financial fraud and the warning signs to look for. Make sure everyone in their circle of trust is informed about the warning signs mentioned in the above section.
The next step is critical and could be considered sensitive depending on your family's situation. Depending on your relationship with your elder, you will want to review their financial statements or have someone trusted to do this. When doing this you need to look for irregular or unauthorized transactions. Having a strong power of attorney in place for an elderly loved one can help provide additional support to review transactions on their behalf with a financial institution or service provider.
While going over their financial statements, you may want to recommend that your elderly loved one review their credit report. You can also use this time to encourage them to set up fraud alerts and automatic credit freezes if certain malicious activities occur connected to their financial behavior.
Make sure to discuss the importance of protecting personal and sensitive information and advise them not to give out personal information over the phone or online. They should only be telling this information to close people that they trust.
Resources and Support
Check with your local community to find non-profit elderly support groups. Most local areas will have government agencies responsible for helping protect elders against fraud.
You can find other tips, strategies, resources, and helplines at these national organizations:
• The Department of Justice's National Elder Fraud Hotline (833-372-8311)
• The Consumer Financial Protection Bureau (1-855-411-CFPB)
• AARP's Fraud Watch Network (877-908-3360)
Conclusion
Elder financial fraud is a serious problem, but by staying informed on strategies and keeping a lookout for important signs, it can be prevented. We need to be active in taking steps to protect our loved ones to help keep them safe from this type of crime.
MIDFLORIDA Credit Union can help you and your family take steps to keep your elderly loved ones safe and financially secure by using our resources or contacting our expert team. For more information about MIDFLORIDA Credit Union, please contact us.
