Preventing Elder Financial Abuse
Elder financial abuse robs older Americans of billions of dollars in money, property and other assets every year. As those safeguarding their customers’ finances, community bankers are key watchdogs for monitoring and preventing this abuse.
As relationship lenders and financial first responders, community banks are in a unique position to help shield our elderly customers against these prevalent threats through employee training and the use of technology to spot red flags and report suspicious activity to authorities.
With World Elder Abuse Awareness Day happening on June 15, we wanted to provide our nation’s seniors and their family members with tips to guard against financial exploitation.
Medicare/Health Insurance Scams
It is difficult to imagine that someone could prey on those in need of medical assistance, but unfortunately, Medicare fraud is all too common. Criminals are posing as Medicare or medical supply representatives to obtain personal information or provide bogus services and use the information to bill Medicare or assume an identity to perpetrate fraud.
As a good rule of thumb never share personal or financial information with anyone who contacts you out of the blue.
Zoom Phishing Emails and Internet Fraud
Con artists are also capitalizing on the rise in video meetings, registering thousands of fake Zoom-related internet domains to send phony emails, texts, or social media messages to trick consumers into clicking on bogus links to address “account suspension” or “meeting” notices. Those that took the bait inadvertently downloaded malware (malicious software) on their computer, exposing their personal information to potential use by fraudsters.
Internet scammers are also known for sending fake text messages alleging trouble with an internet account, credit card, bank account or shopping order. Many contain realistic looking logos to lure you into clicking on a link and divulging personal information.
To limit your exposure, avoid clicking on links from unsolicited emails or texts. If you suspect a problem with an account contact the bank or service provider directly.
Seniors schooled in etiquette may frown upon “hanging up the phone” or simply saying “no” to unsolicited calls, but it also leaves the door open to criminals posing as company representatives. Three notable examples include:
1. The pigeon drop where con artists pretend to share found money in exchange for a “good faith” payment drawn from the contacted person’s bank account.
2. The fake accident ploy where con artists create a false narrative that a loved one has been injured in an accident and needs money for medical expenses.
3. Charity scams where con artists solicit funds on behalf of a charity for which they are not affiliated with or is not legit.
Remember, if it’s too good to be true, it probably is. If you want to give go directly to the source. And if you are worried about a friend or family member, verify the information with them directly.
Unfortunately, scams are always changing, making fraud nearly impossible to fully eradicate, but we’ll never stop looking out for your benefit and encourage you to consult the Federal Trade Commission’s “scam alert” page for information about the latest scams targeting consumers.
Our community bank employees are trained on the latest fraud prevention techniques and are available as a resource as well. They can help you spot potential scams and take appropriate measures to protect your account if you suspect you have been a victim of financial fraud.
Adults 60 and older were 45 percent more likely than adults aged 20-59 to report losing money to a friend or family impersonation scam, according to the Federal Trade Commission.
Roughly 20 percent of older Americans fall prey to financial exploitation totaling $3 billion annually or an average of $120,000 per elderly victim, according to a study from the AARP Public Policy Institute.