Preventing financial exploitation

Here are a few tips adapted from the CFPB on how to protect against the most common form of elder abuse, financial exploitation:

  • Immediately report abuse – Remember that very few cases are ever reported due to many factors including embarrassment that they have been financially exploited, fear of retaliation, the victim is dependent on the abuser for care or assistance, denial, a lack of awareness that they are being exploited, or they don’t know whom they can report it to.
    • If someone is in immediate danger, dial 911 or your local police department.
    • Adult Protective Services: visit eldercare.acl.gov or call 1-800-677-1116 for contact information in your area.
    • For cases of Identity Theft contact the: Federal Trade Commission: Call 1-877-438-4338 or visit ftc.gov/idtheft
  • Plan ahead – A durable power of attorney is a very important tool in planning for financial incapacity due to health problems. It is advisable to consult with an attorney when preparing a power of attorney or any other legal document giving someone else authority over your finances. The CFPB has resources for assisting those who are responsible for managing someone else’s money: https://www.consumerfinance.gov/consumer-tools/managing-someone-elses-money/
  • Consider giving a trusted relative or friend access to monitor transactions – allow someone you trust to monitor your account for things that don’t look right – without giving that person the right to access your funds.
  • Be aware of phone scams that include:
    • Grandparent scams where an imposter calls a grandparent pretending to be a grandchild in trouble and then asks for the grandparent to wire money and not tell any family members for fear of upsetting them.
    • IRS telephone scams that tell the victim that he or she must pay taxes that are owed. The scammer may have a lot of the victim’s personal information such as the last four digits of his or her Social Security Number. The IRS will never ask for credit card, debit card or prepaid card information over the phone.
    • Lottery and sweepstakes scams where the scammer asks the victim to pay for the processing fees or taxes upfront. Most of the time, the victim will have not entered the sweepstakes or lottery to begin with.
    • Phantom debt collection where the scammer calls to collect on a debt that doesn’t exist. They may use scare tactics and threaten to do things they can’t, such as arrest the older person or physically hurt them if the debt isn’t paid immediately.
    • Charity scams that use high-pressure tactics such as trying to get the person to donate immediately without giving him or her time to think about it and do research. They also usually ask for donations in cash or to wire money.
      Registering a phone number on the Do Not Call registry will stop some telemarketing calls representing legitimate businesses but it won’t stop criminal telemarketers from calling.
  • Be aware of Internet scams that target older adults including:
    • ​Phishing scams that create authentic-looking emails, text messages and/or webpages to entice victims to disclose financial information such as credit or debit card details, Social Security numbers, Medicare numbers and other personal information. Legitimate companies never ask for this information via an email or text message.
    • Always be cautious about opening attachments, downloading files and clicking on links in emails, regardless of who sent them. Scammers can spoof an email address to make it look like it is coming from someone you know.
    • Scam artists also call to try to break into your computer. They call claiming to be a computer tech associate with a well-known company. They say that they’ve detected viruses or other malware on your computer to trick a person into giving them remote computer access.
    • If you’re concerned about your account, call the number listed on a legitimate website, on the back of your credit card or other verified place. Never use the number that the email or website tells you.
    • If you think you may have downloaded malware from a tech support scam, don’t panic. Update or download legitimate security software (ask a trusted friend or family member to assist you if you need it). Follow instructions of the software to eliminate problems. Change any passwords you gave out.
  • Avoid identity theft by:
    • ​Protecting your Social Security number, credit card and debit card numbers, PINs, passwords and other personal information.
    • Protect your mail by using a locked mailbox or try to promptly remove mail that has been delivered. For outgoing mail, try to deposit it in a blue Postal Service collection box or pay your bills electronically.
    • Keep your financial trash clean by making sure you don’t throw out pieces of paper containing Social Security numbers, bank account information and other details used to commit fraud. Shred these items preferably with a crosscut shredder.
    • Keep a close watch on your bank account statements and credit card bills.
    • Review your credit report annually.
    • If you think you may be a victim of identity theft, visit the FTC website or call the FTC Identity Theft Hotline: 1-877-438-4338.

Scams that target home owners and veterans

There are scams and fraud that target specific populations of older adults. Those who own their own homes can fall into reverse mortgage proceed fraud, mortgage assistance scams, contractor fraud and home improvement scams. Veterans can be victims to pensions benefits filing scams and pension advance scams. Here are some resources for those who fall into those populations:

Resources for older adults & their families