To help spread awareness of the growing problem of elder abuse, June has been declared Elder Abuse Awareness Month. June 15th is Elder Abuse Awareness Day.
As the youngest baby boomers quickly approach retirement age, the population of older Americans is reaching unprecedented levels. That has made them a prime target of scammers and other bad actors.
What is elder abuse?
According to the Centers for Disease Control and Prevention, elder abuse “is an intentional act or failure to act that causes or creates a risk of harm to an older adult. An older adult is someone age 60 or older.”
Elder abuse can take many forms, including physical and emotional. In this post we will be taking a closer look at financial abuse.
What is financial abuse and how does it work?
Financial abuse occurs when someone, often a caregiver or other trusted individual, accesses or uses an older person’s financial resources without authorization.
Some common ways that people commit financial abuse include, but are not limited to:
- Stealing, embezzling or otherwise misusing an elder’s money or possessions.
- Deceiving or coercing an individual to sign a contract, will, or another financial document.
- Misusing a position of conservatorship, guardianship or power of attorney.
Financial fraud by phone
Phone scams targeting the elderly are common and can be particularly harmful. Experts caution seniors to be wary of calls from unfamiliar numbers and to treat them with suspicion.
Here are four common phone scams:
- Government impersonation scams: Callers claiming to be from an official government agency like the IRS or Social Security Administration will declare that money is owed to the agency and demand immediate payment. They may even threaten the victim with arrest if payment is not made.
- Sweepstakes and lottery scams: Swindlers call targets and tell them they've won a lottery or prize of some kind. Before they can claim their winnings, however, they must send money, cash or gift cards to cover supposed taxes and processing fees.
- Robocalls: Robocalls deliver pre-recorded messages and are used for various scams. One popular robocall scams is the “Can you hear me?” call. When asking this question, the caller wants the victim to answer, “Yes”. By recording the response, the scammer now has a voice signature they can use to authorize unwanted charges on stolen credit cards.
- The grandparent scam: Scammers call claiming to be a grandchild or other relative who is experiencing financial trouble such as past due rent, urgent car repairs, or bond money to stay out of jail.
Protect yourself against elder fraud
Learning more about financial fraud can help you recognize scams before you fall victim to them. Several government websites, including the IRS, the Federal Trade Commission and the Consumer Finance Protection Bureau provide information on common scams, tips on protecting yourself and ways to report suspected fraud.
Another way to protect yourself against fraud is to develop a healthy sense of suspicion when it comes to unsolicited phone calls and emails.
How to report elder financial fraud
With schemes becoming increasingly sophisticated, there’s no reason to feel embarrassed if you think you’ve become a victim of financial fraud. If you suspect you’re a financial fraud victim, reporting it is the best way to get the help you need.
- Contact your bank. You may be able to get unauthorized or otherwise improper transactions reversed.
- Report the incident to one of these government agencies:
- CA Office of Attorney General: Bureau of Medical, Fraud, and Elder Abuse, Complaint Hotline (800) 722-0432
- CA Office of Attorney General: Victims Services Unit (877) 433-9069 (notifies victims and their families about the status of cases the AG Office is handling)
- CA Department of Social Services: Adult Protective Services (833) 401-0832
- CA Department of Financial Protection and Innovation: Seniors Against Investment Fraud (statewide outreach campaign whose purpose is to alert and educate Californians over the age of 50 about investment and telemarketing fraud crimes)
- Keep records of the incident, including letters, emails, texts, or voicemail messages that can help authorities resolve your issue and bring the perpetrators to justice.
Report other forms of elder abuse as well
If you suspect someone is a victim of elder abuse, call 9-1-1 if they are in immediate danger. If danger is not imminent, call 1-833-401-0832 and follow the prompts to be connected to your local Adult Protective Services agency, 7 days a week, 24 hours a day.
Elder financial exploitation can hurt your business
When you own and/or operate a small business, your success can be greatly impacted by your reputation, both online and offline. Negative reviews by dissatisfied customers have sunk more than one business. This is why it’s important for businesses to protect their reputation by fighting elder financial abuse.
Learn to recognize red flags of elder abuse and take steps to protect the victim when you can. Doing so can greatly enhance your reputation while not acting in a timely manner can have serious consequences.
What red flags should you be looking for? Here are a few:
- Customers who purchase multiple, high-denominations gift cards.
- Customers whose accounts have been unusually active or who have been drawing down stored value.
- An increase in chargebacks attributable to older customers.
If you suspect one of your customers is experiencing elder financial abuse, report it to your local adult protective services or police department.
Additionally, you can call the National Elder Fraud Hotline at 1-833-FRAUD-11 (or 833-372-8311).