Protect Your Loved Ones from Scams Targeting Seniors

It can be easy to fall for a scam when someone impersonates a business that you already know, trust, and do business with. Scammers can impersonate anyone from your local computer guy to a delivery service or even trusted government agencies.

Imposter scams like these have been on the rise because they’re successful at getting victims to hand over money — sometimes very quickly.

Senior citizens are even more vulnerable to scams for several reasons. A person from this older generation is generally more trusting of authority and government officials, is less tech-savvy, has accumulated wealth, all of which make them a prime target for scammers.

So, what can adult children do to keep their aging parents safe from these increasingly convincing scam artists?

 Tip: You may hear the phrase “elder fraud” used to describe this category of scammers who particularly target and exploit vulnerable, aging adults.

How to protect and educate your parents and loved ones

• Communicate. Open communication is key. Sign your loved ones up for the National Do Not Call Registry, and have a candid (and ongoing) conversation about the most common scams targeting seniors. Share real examples of fraud that you’ve seen or encountered in the news to create awareness of these types of scams.
• Share advice on how to identify a scam. Spend some time with your loved ones talking about red flags to watch out for. Give them the confidence to speak up or reach out to you if something seems off. Reiterate that scammers will often have a sense of urgency, but this is just a tactic. Legitimate businesses will not approach you with such urgency. There is always time to wait, ask questions, and return a call later.
• Review phone and online safety rules. Remind your loved ones never to disclose personal financial details via email, phone, or text. Talk about how to keep your information safe on your cell phone. Make sure they have legitimate phone numbers handy for those that they most often do business with. Advise them that if they're ever in doubt, to hang up the phone and call the person back at the legitimate number they have on file.
• Monitor accounts. The AARP recommends setting up online tools such as Carefull or EverSafe that are designed to detect suspicious transactions, fraud, and identity theft. Users can choose to get an alert by text or email when suspicious activity occurs. Some programs will walk you through reporting and recouping any losses that have occurred.
• Appoint financial power of attorney. This is a smart protection to have in place if your loved one becomes incapacitated. This legal document will allow you as the “agent” to act on behalf of your loved one to manage financial, healthcare, and other legal decisions. There are many standard power-of-attorney forms online, but it’s smart to bypass those and instead enlist the help of a lawyer to customize the form according to your loved one’s needs, whether it’s filing taxes or managing property. Free and low-cost options are available through Eldercare Locator.
• Vet caregivers. If you’re seeking aid for healthcare or home management, hire someone through a bonded agency that utilizes a rigorous screening process. Stay vigilant during the post-hire period as well — request updates regularly and observe in person when possible.

What to do if your loved one has fallen for a scam:

• Be supportive. After being scammed, it’s normal to have feelings of embarrassment, shame, and self-doubt. Let them know they’re not alone. Encourage them to talk to you about what happened, and reiterate that while it is frightening, it has happened to many others, and there are steps for recovering. Be patient as they process their emotions, and be vocal in your support while you help navigate the next steps.
• Alert financial institutions. Contact their bank, credit union, or wire transfer service to request a cancellation or reversal of any fraudulent transactions, if possible. At a minimum, they can actively monitor their accounts. You can also alert the Social Security Administration and the major credit bureaus (Experian, TransUnion, Equifax) to limit damage incurred from instances of identity theft.
• Report it. If the fraud involved an online scam, report it to the Federal Trade Commission or the U.S. Postal Inspection Service (for mail scams). If you suspect abuse, report it to your local Adult Protective Services agency.
• Create a game plan. Consider setting up regular family meetings to address budgeting, bill payments, or any lingering financial concerns moving forward.

The first step is to start the conversation. Give your parents or loved ones a call and offer to chat about the kind of scams that are most common today. Tell them you want them to know what to do and be prepared if they find themselves in a situation that doesn’t feel right. Answer their questions and begin to put together your game plan.

Content provided in part by GreenPath Financial Wellness, a trusted national nonprofit.