- What is elder financial abuse?
- What are examples of elderly financial abuse?
- Warning signs of elder financial abuse
- What to do when an elderly person is scammed?
- How Advia Can Help
Scammers are always looking for ways to steal information and money. There is no demographic they won't attempt to exploit. One growing scam involves stealing from some of our most vulnerable people – senior citizens. We want to help you spot the signs of elder abuse so you can protect yourself, family and friends.
What is elder financial abuse?
Elder financial exploitation occurs when people steal money or personal information from older adults.
Unfortunately, this scamming trend continues to grow. According to the latest Elder Fraud Report by the Federal Bureau of Investigation (FBI), scams targeting elderly Americans led to a significant loss of over $3 billion in 2023. The report, put together by the Internet Crime Complaint Center (IC3), reveals an alarming 11% increase in complaints from individuals aged 60 and above compared to the previous year. In 2023, these complaints reached 101,068, highlighting a troubling trend.
What are examples of elderly financial abuse?
According to the National Adult Protective Services Association, here are some common elder abuse related scams:
- Grandparent Scams: In this scheme, fraudsters typically pose as a grandchild or someone claiming to represent them. They reach out to elderly individuals, claiming to be in distress, often citing emergencies like accidents or legal troubles. Urging immediate financial assistance, they manipulate their “grandparents” into wiring money or providing sensitive information.
- Charity Scams: Some people or groups trick seniors into donating money to fake charities. They might use sad stories or pressure tactics to get them to give money that never goes where it's supposed to.
- Lottery & Sweepstakes Scams: In these schemes, seniors receive notifications, such as through an email or phone call, claiming they've won a lottery or sweepstakes prize. To claim their supposed winnings, they're asked to pay taxes, fees, or processing expenses upfront. However, there is no actual prize, and seniors end up losing significant amounts of money to the scammers. You can read more about these types of scams in one of our other blogs.
- Home Repair Scams: Scammers offer cheap home repairs or improvements, claiming to have extra materials or offering special deals. After getting paid upfront, they might do a poor job or vanish, leaving seniors with unfinished work and less money.
- Medicare Scams: These scams involve fraudulent individuals posing as Medicare representatives or healthcare providers. They contact seniors, claiming to offer new Medicare cards, benefits, or services. Through phishing calls or emails, they seek personal information such as Social Security numbers or bank account details, which they then misuse for identity theft or fraudulent billing.
Warning signs of elder financial abuse:
Unfortunately, anyone can prey on older adults, whether they're strangers, friends, or even family. That's why it's vital to know about the different scams out there. Being informed is key to protecting seniors from falling into financial traps. It is also important to pay attention to any warning signs of financial abuse. Some signs, as compiled by the U.S. Department of Justice, include:
- Suddenly changing how money is managed in bank accounts, like taking out large sums of money with someone else present
- Adding new names to an older person's bank card without them knowing
- Taking money from the older person's account using their ATM card without permission
- Making unexpected changes to important documents, like wills or financial papers
- Noticing money or valuable things disappearing without a good reason
- Not getting proper care or bills not being paid even though there's enough money
What to do when an elderly person is scammed?
We understand how frightening this type of scam can be, but there are resources available to help. If you suspect yourself or someone you love has been scammed, please contact us right away.
You can also report the suspected scam to the Federal Trade Commission, National Elder Fraud Hotline, and Internet Crime Complain Center (IC3).
How Advia Can Help
Safeguarding our members' finances and protecting their identities is incredibly important to us. Whether you visit us in person or call, we prioritize confirming your identity before helping with financial matters. With our Digital Banking solutions, we implement military grade security measures, like secure access code protection and secure password requirements, to ensure your accounts are safe.
If you suspect you've fallen victim to elder abuse fraud or any form of fraud, don't hesitate to reach out to us immediately.
Sources:
Federal Bureau of Investigation Elder Fraud Report: 2023 Elder Fraud Internet Crime Report (ic3.gov)
National Adult Protective Servies Association: https://www.napsa-now.org/additional-resources-for-financial-exploitation/
U.S. Department of Justice: https://www.justice.gov/elderjustice/red-flags-elder-abuse
Federal Trade Commission: ReportFraud.ftc.gov
National Elder Fraud Hotline: https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope
Internet Crime Complain Center (IC3): https://www.ic3.gov/