Understand and avoid elder financial fraud
Understand and avoid elder financial fraud
Elder fraud is a financial crime that targets older men and women, who are often unable to recognize they are being victimized. Elder financial fraud is a broad term that can be applied to a host of crimes, from stealing money or property directly from an individual to using an older person’s property or possessions without permission.
Many seniors are targeted through telemarketing scams in which elders are scared into giving money out of fear of losing their homes. Some are exploited by people closer to home, who forge signatures or get an older person to sign over deeds or power of attorney.
Criminals often see elderly men and women as easy targets. Seniors may be suffering from declining physical and/or mental health, which compromises their ability to defend themselves or even recognize they are being taken advantage of. Seniors also may be embarrassed that they were duped, and not share their experiences with others as a result. But elder fraud can also be perpetrated by family members who aim to acquire an elderly relative’s assets.
“I think most of the time, seniors tend to forget what they may have or don’t have,” said Sam Caery, agent manager at UnitedHealthcare Medicare Solutions in Little Rock. “The bad guys that are out there, they like to prey on what they consider an easy target.”
Recognizing scenarios where fraud may be committed can help men and women protect their elderly relatives from being victimized by elder fraud.
• Confirm that professionals are who they say they are. More than 170 designations and certifications are used within the financial industry to identify professionals. Some of them do not necessarily mean a person is qualified or can be trusted to handle an individual’s assets. Always ask
a financial adviser if he or she is overseen by a government agency or is authorized to provide advice under the “fiduciary standard of care.” Be especially careful when dealing with advisers who try to push certain products, or those who suggest shortcuts and blending services. Such professionals are not necessarily criminals, but they may have ulterior motives in mind and not be overly concerned about you or your loved one’s financial well-being.
• Pay attention to your accounts. Unusually large withdrawals from automated teller machines or cashed checks with signatures that do not match the signature on the account are both indicative of fraud. If you are monitoring a loved one’s accounts, question any surges of activity in accounts that are normally somewhat inactive.
• Ask a loved one to keep you abreast of changes in their will. Abrupt changes in a will or other financial documents should also cause concern. Family members caring for a senior should be aware of any major changes to important documents.
• Set up an account with a ID protection company. Seniors who choose to protect their identity through a company can benefit from having another set of eyes on their accounts.
Groups searching to steal data will track down financial information as well as medical data, Caery said. He added that seniors need to make sure they have their ID locked down with any reputable company that can protect their ID and take the stress of fraud off their shoulders.
• Monitor a loved one’s purchases. Sudden purchases, whether it’s an updated insurance policy or unnecessary home repairs, may be indicative of elder fraud.
“[Seniors] need to have someone they trust that they can use as a point of reference to help them make those kinds of decisions, and not someone to just make a phone call,” Caery said.
Elder financial fraud targets an often-vulnerable segment of the population, and it’s generally up to loved ones to protect their elderly relatives from being victimized by such crimes.