How to prevent senior financial fraud
Published 9:17 am Friday, June 21, 2013
Dear Savvy Senior,
Can you offer some tips on protecting seniors from financial scams? My neighbor’s elderly mother was recently swindled out of $10,000 and I want to make sure my own mother is protected.
– Troubled daughter
Financial scams that target the elderly continue to be a big problem in the U.S. In fact, it’s estimated that some 5 million Americans over age 60 are scammed out of roughly 3 billion every year. Here are some tips that can help you spot a scam, and what you can do to protect your mom.
Spotting a scam or a con artist is not always easy to do. They range from shady financial advisers to slick-talking telemarketers to professional caregivers and relatives who steal from the very people they’re supposed to be looking after.
The most common scams targeting seniors today come in the form of free-lunch seminars selling dubious financial products, tricky/high-pressure telemarketing calls and endless junk mail peddling free vacation packages, sweepstakes, phony charity fundraisers and more. And, of course, there’s the ongoing problem of identity theft, Medicare fraud, door-to-door scams, credit card theft, and Internet and email scams.
The best way to spot a scam is to help your mom manage her finances or at least monitor her accounts. Reviewing her financial statements each month can alert you to questionable checks, credit card charges or large withdrawals.
If, however, she doesn’t want you looking at her financial records, there are other clues. For example: Is she getting a lot of junk mail for contests, free trips and sweepstakes? Is she receiving calls from strangers offering awards or moneymaking deals? Also notice if her spending habits have changed, if she has complained about being short of money lately, or has suddenly become secretive or defensive about her finances. All these may be signs of trouble.