SCAMS: Elderly Financial Abuse
Last February we talked about the most common healthcare scams, how to identify them, and how to avoid them. These scams don’t let up, though, so this year we’re going to be talking about the 4 most common scams targeting older adults and their families! 33% of seniors active on social media have fallen for a scam, averaging $2,700 each, according to a recent survey.
We’re going to start off this month by discussing Elder Financial Abuse! These financial scams are on the rise, often starting with something as simple as a friendly phone call or an offer to help. But these scams can drain bank accounts, steal identities, and leave seniors in financial distress.
This often begins with someone posing as a helpful financial advisor, government official, or even distant relative. If they gain the target’s trust, they can embezzle money, drain bank accounts, or even change estate plans! They create a sense of urgency, convincing seniors to share personal information or transfer money. Others may claim to offer tech support or prize winnings, but the real goal is to gain access to funds.
How to identify these scams?
Emotional Manipulation – Scammers create a sense of urgency, secrecy, or fear to pressure the victim into financial decisions.
Unusual Financial Transactions – Large withdrawals, wire transfers, or new lines of credit opened in your name.
Changes in Estate Planning – Sudden alterations to wills, trusts, or power of attorney.
Unpaid Bills or Missing Funds – Despite having sufficient resources, you or a loved one receives notices of unpaid bills.
Social Isolation – If you’re a family member of an older adult, you may begin to see them discouraged from talking to family or trusted advisors.
Did you know? Estimating the scope of these scams is incredibly difficult because only a fraction are reported! One study found that older adults lose over $28.3 billion each year because of these scams, with 72% of these cases coming from people the victim knows.
Identifying these scams is one thing, but these scams can and do fall through the cracks. That’s why it’s important to make sure you and your loved ones are protected as well!
Protecting Against Elder Financial Abuse
Set Up Trusted Contacts – Designate a trusted family member or friend whom financial institutions can contact if suspicious activity occurs.
Beware: AI – AI bots can copy the voice of family members to sound just like them, so be wary of calls from unknown numbers and create "safe words" with family so you can verify it's them!
Establish Legal Protections – Consider appointing a financial power of attorney and regularly reviewing estate plans with a lawyer.
Monitor Accounts Regularly – Set up alerts for large transactions and review bank statements for unusual activity.
Use Secure Payment Methods – Avoid sending money through wire transfers, gift cards, or cryptocurrency, especially when requested by unknown individuals.
Educate About Scams – Talk to older family members or friends about common fraud tactics and encourage skepticism toward unsolicited financial offers.
This is a lot of information, but you can always remember this rule of thumb: trust your instincts! If something feels off, or too good to be true, it probably is!
If you or someone you love wants help setting up these protections or is concerned that they may have fallen for a scam, I’m here for you! Don’t hesitate to reach out!