Seven Elder Abuse Scams And How To Protect Yourself

June 15th was World Elder Abuse Awareness Day (WEAAD). Elder Abuse is most often financial with about 4% of elders falling victim to fraud. It is estimated that over $2.9 billion is lost every year. The typical victim is an 85-year-old female who is deceived, threatened, and emotionally manipulated into giving up $120,000 that they couldn’t afford. Additional losses involve a loss of innocence and generosity as victims withdraw even further from social contacts.

Older clients may be more susceptible to scams when the perpetrators are strangers, given that perpetrators are always on the lookout for people they perceive as vulnerable.

As part of their scam, perpetrators will often provide guidance to their victims on how to talk to their financial advisors when questioned about large withdrawals or wire transfers. Gaining a client’s trust is key to stopping these situations.

Exploring some of the most common types of scams may help make you resilient to their wiles. However, as you explore them, note that scams are always evolving; these are just a few possible examples. It is crucial to listen to your clients and ask questions. If you are concerned that a client is a victim of a scam, you should work with your supervisor to assist the client.

You can also rehearse with a senior being scammed. First, let them know what you are rehearsing and why. Then, ask them personal questions and let them practice saying “No.” You can make this a fun exercise that you do with them when you call. “Hi, this is a prince from Wakanda, and I need to move 24 million dollars out of the country. If you would just let me borrow your bank account for a few days you can have one million dollars. What is your bank account number?” Only after practicing silly examples like that, would I recommend moving on to the grimmer examples of loved ones in trouble. Before each practice, make sure that they know you are just rehearsing.

In addition to not giving out any financial information, my rule of thumb is that I never wire money. Yes, I know it is sometimes supposedly “required” for real estate transactions, and they may say it is required in order to buy a car, but wire transfers are the most dangerous method of transferring money. You can almost always find another option if you push hard enough. Push harder; I do not recommend them.

Here are the most common elder scams, how to prevent them, and what to do if you have been victimized by one of them.

1. Computer Virus Scam

This is a scam hiding in plain sight. A supposedly helpful note displays on your computer screen. It may warn you that your computer is infected. In reality, scammers are trying to infect your computer with a virus which may do additional harm or are trying to sell you software which will supposedly disinfect your computer. Sometimes the very software they are trying to sell you is the virus which will capture additional keystrokes on your computer.

Assuming that they are not coming from your normal protection, messages that your computer is infected are nearly always attempts to gain access to your computer. Allowing access to your computer allows that person to steal funds or other sensitive information in order to steal your identity.

Defense:

Neither Apple nor Microsoft nor other legitimate businesses will ask you for credit card information over the phone. They don’t solicit business by flashing a message across your screen. They also probably don’t know what the problem is or have a quick fix just waiting to pop up a message and solve your problem. If you are really tempted, don’t download the software or call their number. Look up your own number for Apple or Microsoft and call them directly.

About 40% of all robocalls are just scammers trying to get your information. On average, we each receive about 16 such calls every month.

In fact, it is a general principle that no company that initiates a call to you is up to any good. If you decide you need whatever they are selling, you should hang up, shop around, and get a better deal than the person who has called you. Refuse to do business with any company that initiates a call to you. At a minimum they are a bad deal.

Solution:

If you do fall prey to this type of scam, tell someone you trust. That person can help you solve the problem before it gets worse.

Yes, it is embarrassing that you fell prey, but scammers are very good at what they do. They prey on your honesty and good-natured agreeableness. So if you fell prey it is at least partly because you are a good person. But it is also important that someone you trust knows as soon as possible. Everything you do on your computer may be compromised. It is important that you resolve that quickly.

The person that you tell will call a real computer technician who will ensure that your computer is not infected. If you have compromised any credit cards, they will help you call your credit card company, dispute any charges made, and get a new credit card.

2. IRS or Social Security Scam

A scammer pretends to be an IRS investigator or someone from the Social Security Administration. They say that you owe additional taxes or your Social Security Number has been suspended. They claim the authority of the government to scare you into doing what they ask. They talk about the back taxes and penalties owed or say that your Social Security Number has been used in a crime. They then suggest that this can all be cleared up quickly if you will simply wire them money or verify your information.

Defense:

Neither the Social Security Administration nor the IRS will ever call you. They may send a threatening letter, but they don’t have the personnel to actually initiate a call. Additionally, Social Security numbers are never blocked or suspended. Furthermore, neither agency will send you an email; they can’t count on citizens having an email address.

This scam, like many others, is built on the lie that these government agencies having sophisticated support options. They do not.

Solution:

If you do fall prey to this type of scam, there are several steps you should take.

First, make sure that you have created your own Social Security account online.

Second, freeze your credit. Scammers are collecting your information in order to do something with it, often opening credit cards in your name. Make that difficult. Freeze your credit. If you have trouble creating a Social Security account, it could be because you have already locked down your credit.

3. Relative in Trouble Scam

A scammer poses as either your relative or someone trying to help your relative through a troubling situation. In its first form, this would be an email from a family member who needs money because they were supposedly mugged in a foreign country. Newer versions involve people who call pretending to be a lawyer who needs you to wire money in order to get a grandson or granddaughter out of jail. Sometimes they know certain information about you, adding a sense of legitimacy to their call. You may even get a chance to talk to your supposed grandchild. It is difficult to understand how upsetting these calls can be until you have helped reassure a client through one of them.

Defense:

Resist the urge to act immediately, no matter how dramatic the story is. Verify the person’s identity by asking questions that a stranger couldn’t possibly answer. Call a phone number for your family member or friend that you know to be genuine. Check the story out with someone else in your family or circle of friends, even if you’ve been told to keep it a secret.

Scammers can convincingly impersonate your loved ones. They will play on your emotions. They insist that you wire money right away. They will swear you to secrecy. None of what they say is true. Don’t wire money or send a check or money order by overnight delivery or courier.

Solution:

If you do fall prey to this scam, the money may be lost. Wire transfers are notoriously one way and can’t be undone. Here is a good article on how to try to recover from wire fraud .

4. Lottery Scam

A scammer contacts you claiming you have won a prize. They ask that you give them your account information and pay a fee for shipping and handling. Sometimes they ask for a large amount and sometimes they ask for a small amount. Assuming that you send the small amount, the scammer will then ask for additional funds.

Defense:

No real lottery would ever call, text, or email you. Neither would they require you to pay money in order to get your prize. There are many laws that govern real sweepstakes. It is illegal for any contest to require a purchase or allow such purchases to increase the odds of winning. Foreign lotteries are against the law.

Solution:

If you do fall prey to this scam, the solution depends on how you have sent the scammer money. If you have given them a credit card, use the phone number on the back of the card to call the credit card company immediately to dispute the charges. If you have wired the money, it may be lost. Here is the article on how to recover from wire fraud .

5. Sweetheart Scam / Hard Luck Scam

The scammer befriends someone online and gradually convinces them to do favors for them. At first the favors may seems small or trivial, but all the favors are intended to limit their own risk of getting caught and maximize the scammer’s financial gain.

Starting out as a stranger, the scammer will prey on your good nature and willingness to help. They provide alluring and exciting emails. They tell interesting stories. They may ask for something to be shipped to your house. Or they may ask you for money to help because…