Scams targeting the elderly are on the rise, and most are convincing, making even savvy seniors vulnerable.
Adult children of elderly parents need to keep their eyes open on their parent’s behalf, because the scammers are increasingly sophisticated and compelling.
The number and types of scams focused on separating the elderly from their money is growing by leaps and bounds. If you’re 65 and older, you’re a target and vulnerable. The FINRA Investor Education Foundation reports that more than 8 in 10 seniors are solicited for likely fraudulent offers.
Kiplinger’s recent article, “Defrauding the Elderly: Watch for These Danger Signs,” explains that advancing age can have some impact on an individual’s emotional and physical health that may lower their defenses against abuse and fraud. Let’s look at some common frauds.
Wire transfer scams: A retired 80-year-old businessman contacted by fraudsters who said they wanted to do business with him. He wired them $400,000, and when he found out he’d been defrauded, he complained to the scammers. They had him contact some new crooks who said they could get his money back if he would wire them $400,000—which he did.
Gift card scams: These can be used to launder money without even having to physically send the cards anywhere. A scammer convinces the elderly victim to get several cards and load them with money. They then have the victim scratch off a protective strip on the back of the card to reveal its code number, take a picture of the number, and then text the picture to a cellphone number.
Computer-hacking scams: A common scam designed to victimize seniors is a contact from someone who says they’re a Microsoft employee. The scammer says the senior’s computer has a virus or some other problem, which they’re happy to fix. The senior just has to click on an email link or download an attachment the rep sends them and pay a fee. The scammer thus gets control of the victim’s computer.
Door-to-door scams: A scammer knocks on a senior’s door and says her trees need to be trimmed or gutters need to be cleaned. There are numerous cases where seniors have paid upwards of $30,000 to trim the hedges at their house. There are no service rendered: the crooks just wait and reappear to help the elderly person write a check for their services.
Family member financial abuse: Financial fraud in a family can be hard to resolve. It’s hard to know if an elderly parent voluntarily gives gifts to a family member, or if fraud is involved.
The best prevention is through education. Make sure that you or your parents are aware of these scams and prepared to say no to thieves. Be non-judgmental, and make sure your parents know that if they think they’ve been scammed, they can come to you for help and support. Get ready for a battle, if your parent thinks that you are trying to stop them from making a lot of money. If things get really dodgy, you may need to think about guardianship and conservatorship. Talk with an elder law attorney about these issues and what steps may be next.
Reference: Kiplinger (October 24, 2019) “Defrauding the Elderly: Watch for These Danger Signs”