How to Prevent Scams on Seniors

Financial scams targeting seniors have become so prevalent that they are now considered by some to be the “crime of the century.”  The below article by Marlo Sollitto of Agingcare.com does an excellent job of provided context and suggestions for lessening the risk of fraud on the elderly.  The article discusses the fact that Scam artists relentlessly prey on seniors.

Why are the elderly more susceptible and more likely to become victims of a scam? The elderly are vulnerable to scams because they tend to be too trusting, gullible, and they often times live alone and don’t have someone watching over their finances. Loneliness also plays a role. Elders are often grateful to have someone to talk to – not suspecting that the “nice man” on the phone may be preying on them.

Can anything be done about elderly scams? “Many of us have a parent, friend or neighbor who would benefit from a friendly reminder that seniors are prime targets for scam artists. We can help prevent them from losing their money, their dignity and their sense of security,” said Ken Hunter, president and CEO of the Council of Better Business Bureaus.

Caregivers can take some steps and identify red flags to help protect their elderly parents from scam artists and fraud against elders, according to the Better Business Bureau. These include:

  • Get involved with seniors’ financial decisions as much as possible, especially when managing personal finances has become a burden.
  • Never allow your elderly parent to give out (or at least warn them against it) personal banking information, credit card numbers or social security numbers to someone who has called. Popular scams include promising information on a new health miracle product, a charitable donation, or confirmation of a sweepstakes.
  • If a salesperson will not provide written information about his or her company–including the company’s name, address and telephone, do business with someone else.
  • If someone calls from a “government agency” requesting money, ask for a certified letter on an official letterhead.
  • Visit the homes of elderly relatives regularly. Ask about phone calls they’ve received (con artists tend to develop relationships with their lonely victims and prey on their need for conversation.). And watch for a full mailbox. Large numbers of mailings from promotion companies could indicate that the elderly person is on a “sucker list.”
  • Tell your parent never to hire someone who shows up at their door. If they are told their plumbing needs fixed, or the roof needs repaired, the scammer may take money, but never do the work.
  • Tell your parents never to make an “on-the-spot” decision. If the person says you have to take the offer immediately or you will miss the opportunity, it is likely a scam. Legitimate companies do not pressure people to act without taking the time to look into the deal.
  • Avoid investments that promise huge profits with no risk. “High-return” investments are not guaranteed and legitimate companies will tell consumers about possible risks involved.
  • Put the senior’s phone number on the National Do Not Call registry by phoning 1.888.382.1222 or visiting www.donotcall.gov (this will help to limit phone calls from telemarketers.)

Fraud against older Americans is a serious problem affecting thousands every year. These tips can help prevent your aging parent from falling victim to scams.

Risk management is a key component of wealth management.  Please feel free to contact us if you need assistance protecting yourself or your loved ones at info@independenceadvisors.com or 610-695-8070.

Wishing you a happy and prosperous 2015.

About Barbara Richardson

As Director of Client Services, Barb leads the effort to improve the Independence Advisors client experience, taking advantage of insights from more than 22 years experience in financial services.

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