Financial Fitness Week: Protect Seniors from Fraud

According to the most recent Census data, the U.S. has about 45 million adults aged 65 and older, of which 10 percent have experienced some form of elder abuse, which can range from emotional or physical to even financial.

Increasingly, seniors are at risk when it comes to their money with scams of all kinds targeting the country’s aging population. Estimates of how much money is lost range from $3 billion to $36 billion. 

“Elder abuse as financial abuse can take on many forms,” said Katie Maxwell, a virtual education consultant for Fidelity Investments. “It’s now most common to find financial exploitation cases.”

As part of Duke’s Financial Fitness Week, Maxwell presented information on fraud and aging to Duke employees in a webinar as part of the “Cyber Monday” launch of the annual finance preparedness program. Here are some takeaways from Maxwell’s presentation, highlighting how fraudsters target an aging population, strategies to recognize when a fraudulent act has occurred, and tips and tools to safeguard accounts and assets.

Top Scams Targeting Seniors

In 2014, 24 percent of scams reported to the Better Business Bureau involved fraudsters pretending to be an agent of the Internal Revenue Service or the Canadian Revenue Agency. “They’ll threaten arrest, deportation, seizure of property or businesses unless immediate payment is made for alleged back taxes,” Maxwell said. “The real IRS doesn’t call out of the blue or demand immediate payment, especially in the form of prepaid debit card or wire transfers.”

Also noted by Maxwell:

• Seniors lost $1.5 billion to fraudulent technology-related scams last year, which often request remote access to computers and can lead to identity theft.
• Seniors have been susceptible to lottery fraud, which involves asking for payment on processing fees or taxes. If real, a lottery winner is responsible for notifying an agency, not the other way around.

How Caregivers Can Help

Caregivers or family members who are suspicious of a older loved one falling prey to fraud can look out for 10 warning signs that might reflect getting duped. Unexplained cash withdrawals, inconsistent banking activity and unexpectedly spending money in excess are all things to look for, Maxwell said. If spotted, she recommended crosschecking information about a potentially fraudulent company or person with the Consumer Financial Protection Bureau. 

Protect Investments

A good way to monitor financial health is through free analysis of credit reports and scores, Maxwell said. Americans are entitled to one free report pull each through companies Equifax, TransUnion and Experian. She recommended spacing requests out every four months. Information on credit scores is also available at CreditKarma.com and Credit.com. In each case, Maxwell noted reports provide a real-time look at finances, which may be beneficial if there’s fear a loved one is being scammed.

“Check for addresses or employers that have no connections,” she said. “It’s also great if you’re looking for information about managing debt.”