It’s estimated that one in five Americans aged 65-plus have been victimized by financial fraud, abuse, and scams.1 When it comes to preventing these crimes, education and awareness are critical.
Be aware of some scams that may target you or someone you love:
Financial Exploitation by a Fiduciary, Power of Attorney, Family Member, or Caregiver – In this situation, a person a senior has entrusted and/or named to help manage his or her finances instead abuses that power to take funds, property, or other assets.
The Romance Scam – This scam applies to online dating sites. Typically, the scammer will use a fake online dating profile to pose as a romantic interest who lives in another city. As the online relationship blossoms, the scammer asks for money to help with a financial emergency.
Phishing – Phishing is an attempt to trick someone into giving out personal information. This scam can involve authentic-looking e-mails or text messages that appear to come from a legitimate company or institution. These communications typically include links to phony sites that ask recipients to update or verify their Social Security number, credit card number, etc.
The Grandparent Scam – In this common scam, an imposter calls a grandparent pretending to be a grandchild in financial trouble. He or she may even know the grandchild’s name. The scammer typically asks the grandparent to wire money or send prepaid debit cards to pay for an emergency expense and asks that the grandparent not tell any family members.
The IRS Scam – This scenario involves a fraudster impersonating an IRS agent. The scammer informs the potential victim that he or she owes taxes that must be paid immediately. It’s important to note that the IRS never asks for payment over the telephone. It uses only the U.S. mail, not phone, text, e-mail, or other means of communication to notify taxpayers of any taxes due. A similar scam involves scammers posing as debt collectors.
If you are a victim of financial abuse or identity theft, contact your investment firm and other financial institutions immediately to report a problem. This may include banks, credit card companies, insurance companies, and other financial institutions where you have accounts that may be impacted by the loss of your personal financial information.
Immediately cut off all contact with any scammer/fraudster, as they will have an explanation for everything and will keep harassing you. Once they obtain funds from a victim, they often come back with a new excuse, emergency, or threat. Revictimization is very common.
1Source: Financial Crimes Enforcement Network, Financial Trend Analysis, “Elder Financial Exploitation: Threat Pattern & Trend Information, June 2022 to June 23.” April 2024.
Article provided by Bryan A. Ruder, CFP®, MSPFP, CRPC™, AWMA™, AAMS™, AIF®, MPASTM, Senior Vice President/Investments, with Stifel, Nicolaus & Company, Incorporated, Member SIPC and New York Stock Exchange, who can be reached by calling the Evansville office at (812) 475-9353.
