World Elder Abuse Awareness Day takes place on June 15. However, Kimberly Reece, Customer Advocacy manager for the Financial Crimes Unit at Regions Bank, points out that scammers are on the lookout for opportunities 365 days a year.
“Seniors are highly targeted when it comes to fraud, mainly because they’re more vulnerable and often not as tech savvy,” said Reece.
That makes protecting seniors an urgent priority for everyone, including adult children, trusted friends, and the seniors themselves.
Elder fraud: The five most common scams
So, what should seniors, their children, and trusted friends look for? For starters, any urgent appeal from an unknown source should be reason for caution. As Reece pointed out, “If you’re being pressured to act right away, that is a big red flag. The odds are very high the caller isn’t who he or she claims to be.”
What are the most common scams today?
Government impersonators
In this common scam, “A caller will pretend to be from the IRS, SSA, their state’s department of motor vehicles, or Medicare and accuse the victim of wrongdoing,” Reece said. “That caller will threaten to cancel benefits or even arrest unless they make a payment or provide personal information right away.”
Another variation? Threatening arrest due to a fictitious missed court date or subpoena. Or revoking a drivers license or registration due to fictitious missed payments. How do you know the call or text is authentic? Kimberly offered a simple litmus test.
“The government will never call with these demands. If there’s a legitimate issue, you will always be notified by mail.” And if on the receiving end of these calls, the response is equally simple: Do not engage. Instead, simply hang up.
The government will never call with these demands. If there’s a legitimate issue, you will always be notified by mail.
Kimberly Reece, Customer Advocacy manager for the Financial Crimes Unit at Regions Bank
Spoofed numbers
What’s spoofing? It’s when scammers pretend to be a legitimate caller, down to imitating Caller ID, pretending to be a legitimate caller such as a business, colleague, government agency, or other trusted contact. Spoofing is used to acquire personal information, secure money, spread malware, or steal data. As Reece advised, “When in doubt, hang up and call back using a phone number from a trusted source such as a website or your existing contact list.”
Romance scams
For a senior who has lost a spouse or partner, life can be lonely. Unfortunately, scammers often take advantage of this by impersonating a potential romantic interest. “The romance scammer establishes a false sense of intimacy with the victim over time,” Reece offered. “Then asks victims to send money, even though they’ve often never met in person.”
Lottery or sweepstakes scam
Almost everybody dreams of hitting it big in the lottery. Unfortunately, scammers take advantage of this human impulse by claiming the victim has won. The catch? The victim must pay a fee to collect the winnings.
“If ever there’s an instance of being too good to be true, this is it,” Reece said. “Any sort of lottery scam or get-rich-quick scam, the kind that asks the participant to send money to get money, should be ignored.”
Grandparent scam
There’s no love like the one given to a grandchild. Scammers take full advantage of this with claims that a grandchild is hurt or in serious trouble, and money is urgently needed.
“The biggest clue?” Reece said. “The scammer advises victims to keep the conversation a secret so the parents don’t find out.”
What does Reece suggest a grandparent do in this situation? “Call a parent or the loved one to confirm this.”
Family or caregiver scams
Hard to believe, but some of the worst scammers are close to home. A family member or a caregiver can leverage trust for their own financial gain.
You can prevent elder fraud
If you have an older family member or friend, Reece offered that you have a role in helping prevent elder fraud. It begins by keeping your eyes and ears open.
“What to look for is new acquaintances, new cosigners added to account, and people taking a special interest in the senior. While those people may have good intentions, you should investigate and, if you’re still concerned, talk to the bank.”
What to look for is new acquaintances, new cosigners added to account, and people taking a special interest in the senior.
Kimberly Reece
And, if you’re a senior, Reece offered a rule of thumb to evaluate risk.
“When asked for information, take time and think about it. Talk it over with someone trusted, such as a family member, someone from a place of worship, or a trusted adviser — someone who has your best interests at heart.”
Want to know more steps you can take? Here are seven commonsense ways to make yourself and those you love more secure against scammers.
That way, with a little caution and a good deal more awareness, we can reduce the heartbreak of elder fraud.
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.