3 Common Scams to Protect Against Elder Financial Abuse
Financial fraud against the elderly has grown. The FBI estimates that seniors lose more than $3 billion each year to fraudsters. Scammers target this group because they believe they have a significant amount of money sitting in their accounts. And it’s hard to imagine, but trusted relatives rob elderly family members, too.
If you or someone you know is approaching their senior years, it’s important to know how to protect against these 3 popular scams:
1) Medicare Scams. Fraudsters claim to be a Medicare representative and ask for personal and medical information. They might tell you that you need a new Medicare card or additional coverage. Then, they will sell your personal and medical information for identity theft, or medical identity theft. Some scammers advertise free or low-cost services or equipment to seniors. But the criminals deliver shoddy services or equipment and will bill Medicare for the full amount.
2) Phone Scams. There are different types of phone scams targeting seniors, including robocalls that offer free medical supplements, devices or discounts, and you may even be a winner in a fake sweepstakes. But if you respond, you could be tricked or pressured into sharing your address, personal information and a credit card account number. The scammers then use these stolen credentials to commit credit card fraud.
It’s important to note that many other scams also start with a phone call, such as IRS imposter scams—when the scammer calls and claims that you owe taxes and could be sent to jail if you don’t pay them right away. However, the IRS will never initiate contact by phone and won’t ask for unusual payment methods, such as gift cards.
3) Deceptive Family Scams. The victim gives permission for a trusted family member to handle personal finances through a misuse of a Power of Attorney. Or, the targeted family member and victim combine bank accounts so funds are easily accessible. Another tactic includes the caregiver sneaking around in stealing debit or credit cards, checks or cash.
These are just a few of the scams that can target seniors. Recognizing these common scams could help you avoid falling for one. For a list of additional scams targeting the elderly, or to report a scam visit the Federal Trade Commission (FTC) website to file the report online.
