Offers that target seniors follow a pattern and can be avoided.

We live in a world with a significant portion of the population in the older age bracket. The state Attorney General in Iowa, for instance, notes that Iowa ranks 16th in population age 50 or older and 4th in population age 75 or older. As boomers have entered retirement, we’ve seen instances of elder abuse on the rise. One of the many terrible aspects of this situation is a rise in financial exploitation. As unpleasant as the topic is, it’s imperative that we take seriously our obligation to take care of each other, our aging parents, siblings and neighbors, and that we know what to look for and what to do to combat this scourge.

So, how do you know what to look for? There is a broad assortment of financial scams out there that target the elderly. Many of them are variations on a theme – leveraging the telephone or email and the inherent good and trusting nature of the victim to extract funds from their accounts. Sometimes, the perpetrator is someone close to the victim. Other times, a false familiarity is gained through deception, a caller asks, “Do you know who this is”; the elder guesses, and it goes from there. Email has become increasingly leveraged as a tool of scammers.

Before cataloging the types of scams more specifically, it’s useful to look at some of the factors in an elder’s life that might make them susceptible to fraud. One simple explanation - the loss of a spouse can put a surviving widow or widower in a situation with which they aren’t familiar or comfortable. This may include handling finances or other home business previously handled by the spouse. Another common problem - a change in health. A decline in memory or other mental capacity can cloud the usual certainty with which decisions are made. If some of these conditions exist in the life of your loved one, ask yourself these questions:

Are they making unusual bank withdrawals? Have they invited formerly unauthorized individuals to participate in their accounts or to act as Power of Attorney while still perfectly healthy? Are they shuffling accounts or making unnecessary movements of assets without explanation – or out of character?

These may be difficult to see – it may be as simple as checking in with our elders, taking the ‘pulse’ of their stress levels, noticing how they organize their time, errands, paperwork and the like. A sudden change in finances can often be a driving factor to changes in other behaviors.

Common Scams

Medicare Scams	A caller says they want to provide benefits and wants to verify your bank account number.
Grandparent Scam	A caller tricks the victim into thinking they are a grandson/daughter in need of help: car accident, bail money, etc. A plea for wired funds, money transfer or similar follows.
Fake Accident Scam	A phony catastrophe is created. The con artist says a family member is in the hospital and needs funds immediately.
Charity Scam	An unbelievably nice person, calling on behalf of what sounds like a worthwhile cause will request an over the phone donation.
IRS Phone Scam	More popular in recent times, this one involves a scammer calling with news that you owe the IRS money and are in danger of being sued if payment isn’t made promptly.
Finder’s Fee/Investment Scam	Wealth is promised, through a shared sweepstakes win or inheritance if you’ll only make a small payment to ‘get the ball rolling.’
Phishing/Vishing Scam	In this scam, an email or call says there is a problem with your account and directs you to ‘fix’ the problem by giving your information (acct #s) over the phone or via webpage.
Obituary Scam	Scammers will attend a funeral or scan the obituaries to find victims who will respond to their claim that the deceased has fake debts to settle.

So, with all these potential frauds, what can you do to protect you or those that you care about from becoming a target of financial fraud? A few tips:

• If someone asks for money up front, before services are rendered, be very wary.
• If someone asks for a bank routing number or an account number over the phone or by email, do not do it.  Hang up, delete the message or ask for a letter. If necessary, contact a consumer advocate such as the Better Business Bureau or the Attorney General of your state. In the case of IRS fraud, call the IRS at 800-366-4484.
• If a phone call generates sympathy that’s tied to some sort of emergency (Charity, lost relative, accident, debt settlement) and funds needed immediately by phone or wire, don’t do it. Buy yourself some time by asking for a letter or some sort of confirmation. If necessary call a consumer advocate.
• Stay in touch with loved ones and maintain connections with support groups. Volunteer, go on outings and visit your neighbors.

Bottom line: If you are one who can talk to your closest elders about the topic, share with them a few of these ideas. Without being alarmist, encourage them to have a healthy skepticism when approached by anyone who asks for personal financial data or immediate release of funds.

Source material: House Representative David Young; Iowa Attorney General’s office.

Are you concerned about Senior fraud? Contact a Central Bank representative to get answers or help with identifying or dealing with this type of crime.