Not-so-golden years? Shielding seniors from financial fraud
Americans over 65 tend to have savings, steady income from Social Security, money in retirement accounts and other assets, like a home that they own. Unfortunately, as they age, the elderly can also become more vulnerable to being fleeced, especially if they live alone, are struggling with illness or begin to show signs of cognitive decline.
“It’s why bank robbers go to the bank,” said Amy Nofziger, director of regional operations with the AARP Foundation. “Scammers and criminals will go to older adults because that’s where the money is, so they’re certainly targeted more often than not.”
The illegal or improper use of a senior’s funds, property or assets is the most common form of elder abuse in the U.S., according to the Consumer Financial Protection Bureau. Annual financial fraud losses for older Americans can reach as high as $36.5 billion, according to a 2015 study cited by the CFPB.
Another study out of New York State shows that for every case of financial exploitation that gets reported to law enforcement, adult protective services or a similar agency, 43 cases go unreported, said Naomi Karp, senior policy analyst at the CFPB’s Office of Older Americans.
And the threat doesn’t only come from strangers. The culprits can be family members and others a senior knows who have easy access to their checkbook or Social Security number.
Here are some steps seniors should consider to protect themselves from financial fraud:
SAFEGUARD IMPORTANT DOCUMENTS
Keep your ID, checkbook, bank statements, utility bills and other documents with details that could be mined to open unauthorized credit in your name locked or out of view from relatives and caregivers.
MONITOR YOUR ACCOUNTS
spot unauthorized cash withdrawals or charges. Regularly review your monthly statements. A trusted family member can do this for you, or they can use an app like Mint, which allows users to view bank and card transactions, but not make any withdrawals or charges. Also check your credit report regularly. You’re entitled to a free report annually. Get it here: http://bit.ly/1cxzJ5n
FREEZE YOUR CREDIT REPORT
Consider asking the three major credit reporting agencies — Equifax, TransUnion and Experian — to freeze your credit report to guard against having unauthorized accounts opened. Each agency will charge between $5 and $10. You can still use the credit cards you already have, though you’ll have to ask to lift the freeze to sign up for a new credit account. Note that the freeze won’t stop unauthorized charges on your existing cards.
SCREEN CALLS
A majority of fraud complaints called into the Federal Trade Commission’s Consumer Sentinel Network (CSN) last year list the phone as the way that scammers made contact. So, a senior may reduce the chances of being the victim of financial fraud by screening calls. Never divulge any personal or financial information to anyone who calls you unexpectedly. Companies and government agencies won’t ask for such details over the phone.
KNOW THE SCAMS
Get wise to the scammers’ ways. The National Council on Aging, an advocacy group for seniors, has links to common financial scams that are targeting seniors. Check out the list here: http://bit.ly/2zAOjGW