Every year, countless elderly Americans become victims of various financial scams including but not limited to romance, lottery, and sweepstakes scams. Scammers establish trust with their targets, often communicating directly via computer, phone, and mail, or indirectly through TV and radio. Once they succeed, the potential for financial gain continues the scamming pattern.
Elderly individuals are frequent targets because they are generally trusting and courteous. Moreover, they often have savings, own property, and possess good credit scores, making them appealing prey for scammers.
This blog will explore the definition of elder fraud, common examples, how to identify it, where to report it, and what steps to take if you or someone you know becomes a victim.
What is Financial Abuse?
When it comes to safeguarding our elderly loved ones from financial fraud, there are four key steps to keep in mind:
1. Prevention
2. Identification
3. Documentation
4. Reporting
This blog post emphasizes the crucial final step, “Reporting”. To understand all the steps and access additional resources, refer to our page on Elder Fraud.
What is Elder Financial Fraud?
Elder fraud, a form of financial exploitation, targets seniors over 60, involving deception or manipulation to take their money, property, or personal information. This can be committed by anyone, from strangers to family members.
Elder financial fraud involves stealing an elderly person’s financial assets for personal gain, including money taken without consent, failure to repay debts, overcharging, or non-delivery of paid services. Recognizing signs of such fraud is crucial in safeguarding seniors, especially in nursing homes and assisted living communities.
As a relative or friend, you have a significant role in preventing elder financial fraud and reporting any suspected activities to the authorities.
Examples of Elder Fraud
Elder fraud can manifest in various forms, including (but not limited to):
Phishing Scams: Fraudsters pose as legitimate companies or government agencies to trick seniors into revealing personal information or transferring money.
Romance Scams: Criminals pose as interested romantic partners on social media or dating websites to capitalize on their elderly victims’ desire to find companions.
Telemarketing & Phone Scams: Scammers call elderly individuals, often posing as charity workers, tech support, or lottery officials, to solicit funds or personal details.
Giftcard Scams: Scammers trick the victim into buying gift cards from major retailers and then provide the scammer with the gift card numbers and PINs.
Investment Scams: Seniors are targeted with fake investment opportunities promising high returns with little risk.
Sweepstakes, Charity, or Lottery Scam: Criminals claim to work for legitimate charitable organizations to gain victims’ trust. Or they claim their targets have won a foreign lottery or sweepstake, which they can collect for a “fee.”
Medicare and Health Insurance Scams: Scammers use seniors’ need for healthcare to steal their Medicare numbers and commit fraudulent billing.
Grandparent Scams: A fraudster pretends to be a grandchild in distress, requesting urgent financial help.
Home Repair Scams: Fraudulent contractors offer services and demand payment upfront, often performing substandard work or disappearing with the money.
How to Identify Elder Fraud
Recognizing the signs of elder fraud can help prevent financial loss and emotional distress. Key indicators include:
Unexplained withdrawals or transfers from bank accounts.
Sudden changes in banking or investment practices.
New and unfamiliar names added to financial accounts.
Unpaid bills or notices despite sufficient funds.
Excessive spending on unnecessary goods or services.
Your loved one expressing confusion or fear about their finances.
Where to Report Financial Abuse of the Elderly
If you have suspicions of elder fraud, it’s crucial to take immediate action. The first step is to inform the senior’s credit union or financial institution to safeguard their accounts and investigate any suspicious activities.
Next, you can report elder financial abuse to Adult Protective Services (APS), which are state-run social services programs aiding older adults and adults with disabilities who are victims of abuse, neglect, or exploitation.
If there is an immediate safety risk to an individual, call 911! For non-emergencies, you can report to your local police or Sheriff’s office. Keep in mind that elder financial abuse is considered a specific crime in some states and can encompass theft, fraud, forgery, embezzlement, or money laundering.
You might also consider reporting to your local District Attorney’s office who can potentially prosecute the offender. Reach out to Local Law Enforcement to file a report, and to APS who can investigate elder abuse reports and provide help.
Additionally, The Federal Trade Commission (FTC) is another resource for reporting fraud and for guidance. Your State Attorney General’s Office might have a dedicated elder abuse unit and can be a useful resource.
What Information is Needed to File a Report?
Details to include in the report should be:
The time, date, and place of the incident(s)
The names of all parties involved, including any witnesses
The bank accounts or statements involved with a detailed amount of compromised money involved
A detailed account of the suspected financial abuse, along with any other forms of abuse or neglect observed
Information about the elderly person’s health or disabilities, specifically any details related to their decision-making capabilities or memory issues
Any concerns about immediate danger to the elderly individual or others
Do Banks Refund Scammed Money?
Whether a financial institution will refund scammed money depends on several factors, including the type of scam and that financial institution’s policies. Generally:
Unauthorized Transactions: Banks are more likely to refund money for unauthorized transactions if reported promptly.
Authorized Transactions: If the elder willingly gave money to the scammer, it can be more challenging to get a refund. Some banks may offer partial or full reimbursement as a goodwill gesture.
Investigation: The bank will conduct an investigation, and the outcome will determine whether a refund is issued.
Although this may be a hard process to go through, there are many resources and outlets to hopefully help get justice for victims of scams.
What to Do if You Get Scammed as an Elderly Person
If you find yourself a victim of a scam, it’s essential to act quickly:
Contact Your Financial Institution ASAP: Report the fraud and request a hold on your accounts.
Change Passwords and PINs: Secure your accounts by updating passwords and PINs.
Report the Scam: Notify local law enforcement, APS, and relevant federal agencies.
Check Your Credit: Obtain your credit reports and monitor for any fraudulent activities.
Seek Support: Reach out to family, friends, or support groups for emotional and practical assistance.
How Can I Recover from Being Scammed?
Recovering from a scam involves a combination of financial and emotional steps. On the financial side, you should place a fraud alert or freeze on your credit files to prevent further misuse. Work with your financial institution to dispute any fraudulent charges and keep a close eye on all your financial accounts for any unusual activities. If large sums of money are involved, consider consulting with a lawyer.
On the emotional side, it may be helpful to seek professional counseling to deal with the aftermath of the scam. Joining support groups can also be beneficial as it enables you to share your experiences and gain support from others in similar situations. Finally, educating yourself about common scams can help you avoid similar incidents in the future.
Other Resources for Help
Elder fraud often involves financial exploitation. If such a situation occurs, it is crucial to act quickly. Long-term care ombudsmen help in supporting elders living in nursing homes, assisted living communities, and other adult care facilities. They stand up for your elderly loved one when issues arise and work towards resolving them. Each state has an Office of the State Long-Term Care Ombudsman available for assistance.
It’s also beneficial if your elderly loved one has access to a social worker, elder patient advocate, or a similar professional who can assist when needed. These individuals can be instrumental in navigating difficult situations.
Contact the relevant bank, credit union, credit card company, or other financial services provider to report the abuse. Depending on the specifics, the financial institution might be able to recover your loved one’s lost assets. Furthermore, it’s worth checking if your loved one has any insurance that could cover such losses.
