As members of the “sandwich generation,” many of our clients have parents who are at the age where financial scams become prevalent. In fact, according to the National Council on Aging (NCOA), “Financial scams targeting seniors have become so prevalent that they’re now considered “the crime of the 21st century.”
To help you protect your parents from scammers this month we cover warning signs to look for and actions steps you can take.
No doubt you’ve received a call from someone purporting to be from the Social Security Administration. I know I get them on a weekly basis. Scams, like clothing, have trends and below are the latest and most common scams for seniors in 2019-
•Social security spoofing scams. This is when supposedly someone from the Social Security Administration (SSA) calls and threatens legal action or arrest unless the senior calls a specified number or provides information. SSA never makes threats about arrest or legal action, and rarely calls unless there is an ongoing concern.
•The Grandparent scam. In this case someone pretending to be a grandchild calls and requests money be sent to them immediately, often in cash, because of an accident or legal trouble. While this could be legitimate, calling the grandchild back at a phone number you are familiar with and verifying their location can determine if the request was authentic.
•Natural disaster scams. These can be either fraudulent charities purporting to help victims of the disasters, or fraudsters posing as employees of the IRS praying on elderly victims of the disasters themselves. You can verify authenticity of charities on the website Charity Navigator, and locate legitimate disaster relief agencies at the NCOA site.
If you see these warning signs, a senior may have been victims of financial fraud-
1.Unusual activity in their bank accounts
2.They appear confused and afraid
3.Essential bills are unpaid despite having the means to pay them
4.Seniors with caregivers are prevented from communication with others
What do you do if you believe an elderly loved one may have been the victim of a scam? AARP shares these steps you can take-
1.Unlist your parents’ phone numbers and consider replacing a landline with a cell phone
2.Put your parents addresses on Opt-Out lists with the Direct Marketing Association
3.Check your parents credit reports to verify no new accounts have been opened in their names. You can check this annually for free at annualcreditreport.com
Unfortunately, 90% of financial scams against seniors are committed by family members. If you suspect elder abuse, whether by a family member, or any other person or entity, you can contact your state’s Adult Protective Services (APS) program. The reporter’s identity is protected and all services with APS are confidential.
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