Scammers are running wild
Q: It seems like scammers are running wild and my poor mom continues to be victimized. Most recently, mom received a 1099 for unemployment income she received during 2020. My mom has been retired for over 20 years! Apparently, someone obtained unemployment income under her social security number. What can we do to protect our moms?
A: It seems like every other week a new scam targeting seniors comes to light. According to the Federal Trade Commission, during 2020, a largescale scam was perpetrated by imposters filing claims for unemployment benefits using stolen identities. While your mom will not need to pay income tax on the scammed income, she does need to alert her tax preparer to the fraud and report it to the IRS and Franchise Tax Board accordingly.
In addition, your mom should report the scam to the state unemployment benefits agency and go to IdentityTheft.gov to take further steps to protect her identity.
Another scam we are seeing involves Medicare. Perpetrators of this scam call a senior on the phone, state they are a representative from Medicare and ask the senior to identify themselves by providing their date of birth and social security number. With this information, the scammer has what they need to get credit cards and otherwise steal the senior’s identity.
Preplanning for funeral or cremation should be done with a reputable funeral home and be completed before death. Payment for services can be made at the time of planning or by our trustee after death. Family members should not be forced to make decisions regarding our burial in the midst of grief. Disreputable funeral homes can capitalize on a family member’s grief and unfamiliarity with our wishes.
Obituaries and funerals can also present opportunities for scammers. The scammer reads an obituary, attends the funeral and, while at the funeral, approaches the spouse or children of the deceased telling them that the decedent owed them money.
Prescription drugs offer ripe pickings for scammers, as well. With the high cost of prescription drugs, a senior may go looking for better pricing on the internet. Since 2000, the FDA has investigated an average of 20 counterfeit prescription drug rings per year. Besides the danger of paying money for drugs that may not help, victims have purchased unsafe substances that have inflicted harm. This scam, unfortunately, is growing in popularity.
If online, be alert to emails from “your bank.” Phishing emails can come into email boxes that look exactly like an email from a bank or other trusted institution. The phishing email may want to “confirm” personal information and thereby elicit the very informa
tion needed to enable a scammer to hack your identity.
Now, with COVID-19, we have a whole new slew of scams. Be advised that you cannot pay to skip the line for a vaccine nor can you buy the vaccine from an online pharmacy. Genuine contact tracers will not ask you for money and be wary of athome virus tests you can purchase online.
As for your mom, unless there is a reason
to keep her credit reports active, you should “freeze” them temporarily which will help protect them from identity theft. Constant vigilance is, unfortunately, the only defense against scams.
Liza Horvath has over 30 years’ experience in the estate planning and trust fields and is the president of Monterey Trust Management, a financial and trust management company. This is not intended to be legal or tax advice. If you have a question call (831) 646-5262 or email liza@ montereytrust.com