Elder Financial Exploitation Awareness

Editor’s note: This is the fourth entry in a yearlong series on protecting yourself against fraud. You can read additional posts about fraud here.

May is Older Americans Month, so we thought we’d use this month’s entry in our ongoing series on fraud prevention to discuss elder financial exploitation.

What Is Elder Financial Exploitation?

Elder financial exploitation is the illegal or improper use of an elderly adult or a person with a disability’s money, property, or other resources for monetary or personal benefit, profit, or gain.

And unfortunately in today’s world, it’s more common than you’d like to think.

Common Scams Targeting Elderly Adults

Many of the common ways scammers target elderly adults are variations of the same ways they target the rest of the population, but some are not. Here are some common scams you should be aware of, whether you’re trying to protect yourself or someone else in your life:

• Lottery scams. In these scams, the victim may be told they’ve “won” money but need to send a payment for taxes or fees first. Then the “winnings” never arrive, or they do come, but they come from an individual rather than a sweepstakes or company, and you’ve unwittingly helped launder money as a mule. (Check out our previous blog on “money mules” here.)
  • If it seems too good to be true, it probably is, especially if you’ve never entered the contest to begin with.
• Romance scam. The victim “meets” someone online – maybe it’s through social media or an online dating site – and as the conversations get more serious, the scammer requests money so they can come visit, or because they have an emergency surgery coming up, or some other urgent matter.
  • Never send money to someone you’ve never met.
• Tech support scam. There are variations of this – some in which the victim calls a phone number found online because they need help and others in which the victim is targeted specifically because of a problem with their account or device – but the end result is the same.
  • Never click links or download apps from “tech” support on something you didn’t initiate.
  • Go directly to the website of the manufacturer of your device for support instead of using something that pops up when you search for it online.
• “Grandparent” scam. In this scam, someone calls the victim impersonating a grandkid or another younger relative. They’re in trouble (arrested, medical bill, car problems, etc.) and need you to send them money – but not to tell anyone about it.
  • Make sure you know exactly who you’re talking to, especially if this conversation is happening online or is someone you haven’t talked to in a long time. Hang up and double-check your grandchild’s phone number yourself. Or call another family member and confirm you were talking to the right person.
• Government impersonation scam. This common scam starts with someone telling you they are from the government (or even an automated message) and that there is a problem with your Social Security Number, you owe money to the government, a case is being brought against you, or something similar that sounds alarming.
  • Read more about these types of scams here.
  • Remember: The government will never ask you to confirm your SSN over the phone.
  • Remember: The Social Security Administration doesn’t suspend, block, revoke, or freeze Social Security Numbers.
  • Remember: If you owe the government money, they won’t ask you to wire funds or send gift cards.

Other Kinds of Elder Financial Exploitation

While those are some of the more common forms of elder financial exploitation, they are not the only ones. Other forms may come from people much closer to the victim.

Sometimes family, friends, or caregivers will exploit their relationship with an elderly adult for their own personal gain by making purchases using an account they’ve been entrusted with, coercing the victim to add them as a joint owner on an account, making withdrawals in the victim’s name, and more.

If you notice that a loved one suddenly has someone (whether a family member, “friend,” or caregiver) with unusual influence in their lives, pay attention for the following if the new acquaintance:

• shows excessive interest in your loved one’s finances
• will not let your loved one speak for himself or herself
• is reluctant to leave their side during conversations
• begins conducting an unusual number of financial transactions on your loved one’s behalf
• “allows” himself or herself to be given extravagant gifts

Check back next month for more tips on protecting your identity and your financial life.