Source: Pexels
Millions of adults fall victim to financial scams each year, especially elderly individuals. You may think that you and your loved ones are safe from getting scammed, but that’s not always the case. Scammers are smart and use sophisticated tactics to lure older adults in before financially ruining them.
It’s normal to feel protective of your older relatives while still encouraging them to feel independent. How do you find the balance between protecting them from scammers and financial ruin while helping them maintain their dignity?
Don’t worry – this blog will cover some of the ways you can protect your loved one from financial scams. We’ll also talk about some things you can teach them so they can work to keep themselves safe.
Why Are the Elderly Targets For Financial Scams?
Financial scams are devastating to anyone regardless of their age, but they’re more so to older adults. The elderly may not have the time to earn back the money they’ve lost because they got scammed.
There are a few reasons older adults are considered to be easier victims, including:
- Perceived cognitive decline or frailty
- Potentially more accumulated wealth
- Reluctance to challenge someone on the phone
- More likely to trust another person instead of assuming the worst
Scams of any kind are considered a form of elder financial abuse in California. While it can be difficult to seek justice from scammers after the fact, there are ways elderly adults can protect themselves from getting exploited in the first place.
Common Financial Scams Targeting Older Adults
One of the easiest ways to protect your loved one from getting scammed is learning about the ways scammers try to steal personal information, banking details, and money. Let’s dive into some of the most common ways scammers target seniors.
Government Impersonation Scams
Scammers will pose as government officials and attempt to steal financial information from seniors. A few of the most common government agencies that get impersonated include:
- Social Security Administration
- Medicare
- Internal Revenue Service (IRS)
Pre-Recorded Phone Call Scams
How many calls do we get each day from fake companies claiming we’ve had a loan taken out in our name, and the business needs more information from us? Maybe you’ve gotten a phone call from your internet company saying you owe them money and they’re about to turn off your services.
Any phone call that you get that sounds pre-recorded is likely a scam and illegal. Tell your loved one to hang up on any phone calls that sound suspicious and to block the phone number. You can also tell them not to answer a phone call from a number they don’t recognize and let it go to voicemail.
Romance/Intimacy Scams
Scammers will try to gain your loved one’s trust and affection by using a false online identity. They may even try to impersonate someone in your family to immediately gain entry. The scammer will use the guise of being in a close or romantic relationship to steal from and manipulate your loved one.
How to Spot Early Signs of Financial Scams
Start by looking for small financial or behavioral changes if you’re suspicious your loved one is already involved in a scam. These signs may include:
- Sudden ATM withdrawals or unusual banking activity
- New “friends” who influence their financial decisions
- Unpaid bills despite having enough money to pay them
- Doesn’t want to talk about their finances
- Makes changes to their legal documents, like wills or power of attorney
We recommend having open conversations about your loved one’s finances to prevent serious issues. It can also create a safe space for your loved one to come forward if they’re unsure about a suspicious request.
Final Thoughts
Getting financially scammed can be emotionally and financially devastating. Being proactive and learning how to know if your loved one is being financially scammed can help you both avoid serious problems.
The post How to Protect Your Finances From Scams Affecting Older Family Members appeared first on Man vs Debt.