The thought of having a grandparent or elderly loved one scammed out of anything is heartbreaking; but it should be considered a real concern that needs more attention. A study conducted in 2014 by the Stanford Center on Longevity and the Financial Industry Regulatory Authority's Investor Education Foundation, found that those over 65 are 34 percent more likely to have lost money on a financial scam than people in their 40s. Financial scams involving seniors have been on the rise over the last several years and by some, are being considered “the crime of the 21st century.” Many scammers hope to target wealthy, retired seniors with money sitting in their accounts, but they’re not the only targets. Low-income seniors are just as equally at risk with their vulnerability and state of mental health being major factors behind a variety of scams.
Sweetheart Scam
In the last several years, one of the major scams contributing to senior abuse and fraud cases has been referred to as the “sweetheart scam.” Becoming just as popular for seniors are they are for the millennial generation, dating sites are the source for many scamming opportunities. Wanting to find partnership and love is the same for any age; however, for those seniors who have lost a loved one and live in assisted care facilities or on their own it could be even harder to meet someone to spend their time with. Loneliness and depression rates are higher among seniors who live alone, so utilizing technology to make connections can have a lot of benefits. In many cases though, a lonely and sometimes confused elderly person gets taken advantage of and mistakes their online romance with an Internet stranger for something larger leading to fraud. Often, the scammer will persuade the victim to take their conversation off the dating site, losing any safeguards that were once there.
When things progress with the scammer and the senior victim, they may talk on the phone daily or eventually meet up in person, which could be very dangerous. Many times the scammer will explain a predicament they need help getting out of, which can lead to money transfers and credit card fraud. An article on CNBC written by Kelley Holland reports that in many cases, scammers are more likely to target white women between the ages of 70 to 89. “They want to be in a relationship, they want to feel love,” said Amy Nofziger of the AARP Fraud Watch Network, who has handled a case prior with a woman who has swindled out of $180,000 in a sweetheart scam.
Imposter Scams
Imposter scams can involve a number of tricky scenarios. Some of the more common impostor scams use phone calls and emails stating they’re from the IRS and further taxes are due, usually asking for money and providing an address for them to send money. Medicare and health insurance scams are also quite common. Every U.S. citizen over the age of 65 qualifies for Medicare, so there’s rarely a reason for this age bracket to be contacted by private health insurance companies. However, often scammers will contact seniors by phone pretending to be Medicare representatives in order to get personal information and try to convince them of unpaid bills in order to get money.
Telemarketing scams are another major contributor to senior fraud. The National Council on Aging confirms that seniors who as a group, make twice as many purchases over the phone than the national average, which is why they’re at high risk for phone scams. While some consider the image of a lonely senior enjoying phone conversation may have something to do with it, it’s far more reasonable that seniors are more comfortable shopping over the phone and simply unaware of the risks. Many times these transactions don’t have a paper trail, making them hard to trace back to the fraudsters while allowing the victims name to become more popular for others to repeat the same crime.
How to Prevent Senior Scamming
Help prevent senior scamming with these helpful suggestions from Consumer Reports:
Pay attention to attitudes of their caregiver. Hiring a caregiver who is undergoing financial and emotional stress can lead to them stealing assets from your senior loved one. Make sure you trust them, and they’re not going to cause any physical or financial harm.
Set up safeguards at the bank. If you're concerned about your loved ones finances and use services to help care for them, it could be helpful to set up a smaller bank account and debit card with a spending limit. This way the rest of their money is safe, and no one else can access it if it were to fall into the wrong hands.
Block solicitations. You can opt out of commercial mail solicitations through Direct Marketing Association’s mail preference service. There’s also ways to block unsolicited calls for credit as well as eliminate robot calls in order to provide added protection.
This one is the most important: regularly visit or call. It’s impossible to protect our loved ones from all of the bad in the world; however, stay well connected with the senior you care for. Become suspicious of any “new best friends” who don’t seem to be able to meet in person or if they’ve caused any uncomfortable boundaries between you and your elderly loved one. This could suggest someone is having a negative influence on the senior’s decision-making and could ultimately lead to senior fraud or other dangerous situations.