esm7i Seniors are often the target of financial scams. Here’s how you can help protect them
According to the Federal Trade Commission (FTC), senior citizens in America will lose over $193,000,000 due to telephone scams by 2020. Scams have increased both online and off during the pandemic. Scams are often targeted at seniors. You may want to protect your elderly parents or those who are not tech-savvy.
This blog post will tell you everything you need about how to protect parents from financial fraud.
What is financial fraud
Financial fraud occurs when someone steals money or valuable assets through criminal activity or deception. Financial fraud has been around for many years but has become more prevalent in the last few years. Scammers are taking advantage of Covid-19 and have defrauded people of their money under the pretext of offering jobs.
In these uncertain times, it’s essential to be as informed as possible on scams and how to avoid them. Here are a few tips to help you protect your elderly family members and their retirement funds.
Warning: Investment Fraud
Many “experts” will offer to help manage your parents’ retirement savings or invest their money to grow their savings. These scammers will exploit your parents, so do a background check of all financial and investment advisors using BrokerCheck by the Financial Industry Regulatory Authority. Ask your parents about their licenses, if past clients have taken any disciplinary actions against them, and if there are any references.
Your parents should avoid so-called professionals who are unable to answer all of their questions. Some other red flags include:
No risk, high returns “guaranteed.”
Questions that must be answered correctly can lead to a lack of knowledge.
No documentation regarding their services
Tell them about common scare tactics
Scammers often commit fraud by scaring older adults. Please share the following information with your parents to protect them from being scammed.
It’s essential to confirm the identity of someone who claims to have been kidnapped or begged for money for an emergency. You’d rather risk an awkward call than give money to someone without reason.
You should not trust a person who demands immediate payment while claiming to have a suspended account or that the report will be closed. You or your parents need to contact the account’s financial institution immediately.
Fraud is committed when a caller pretends to be from a bank, an insurance company, or a government agency and requests payment, sensitive information, or account details. Legitimate institutions will send this information via secure messaging or mail. Call your parents’ institution and stop doing business with this person.
Scammers who use the phone can be convincing. Remind your senior citizens that they will be notified by mail if severe financial issues need to be resolved. They will also give them plenty of time to complete the process, so anyone who tries to hurry them is most likely a fraud. If your parents are being threatened, tell them not to give out personal information or money and to always come to you for advice.
Remind them never to share personal information
Remember always to tell your parents never to give out their personal information. This is another way that scammers can get away with crimes such as credit fraud, identity theft, and bank fraud. They should not disclose information like:
Social Security Numbers
Account Numbers
Passwords
Name, address, and date of birth are all personal information.
It is essential if the caller claims to be an unknown institution or organization. They will be more relaxed if they make the call to check on their account or clarify details.
Do Not Trust Caller Identification
Caller ID has become a common feature of smartphones and is even available on landlines. This makes it easier to identify the person making the call. Seniors should be aware that criminals can easily manipulate caller identification. It is best to warn them not to trust their caller IDs and to watch out for calls from Social Security and Medicare, as well as the IRS and financial institutions. Government agencies or businesses can handle unsolicited calls by letting them go to voicemail.
The number can be verified against other trusted sources, such as documents from their account or the business’s official website.
Register them on the No-Call Lists
You can help your parents register on the National Do Not Call Registry if necessary. After a few weeks, your parents should stop receiving telemarketing calls. Those that do still reach them are likely scams and can be ignored. But calls to solicit donations for charities and political campaigns may continue.
Never make payments to collect money
One of the most common phone scams is when a caller tells a victim they’ve won a lottery or sweepstakes and that an enormous amount of money awaits them. There’s always one catch: they must pay a service or transfer fee before the process can begin. You can remind your parents to expect legitimate prizes to be announced via mail and that no payment is required.
Tell them just to put the phone down
Seniors are often polite and may not want to end their calls abruptly. You can help them by role-playing to show how callers might speak or how they may try to intimidate them to get money. Give them feedback and coaching to help them end the call, even if it is mid-sentence.
Additional Steps They Can Take
You can also help your parents to avoid financial scams by doing the following:
You can check their credit reports via AnnualCreditReport.com to ensure no fraudulent accounts are open under their names.
You can add their addresses to opt-out lists, such as those the Direct Marketing Association maintains. This will prevent legitimate companies from sending junk mail and let your parents know that any package still making its way to the door most likely comes from fraudsters. The box will be reported to the U.S. Postal Inspection Service or mailed to them. Postal Inspection Service.
If they are ever the victim of fraud, then AARP can help. Call the AARP Fraud Watch Network Helpline (877)908-3360, and you will receive a response within 48 hours.
Conclusion
Helping our parents and other elderly loved ones develop awareness and vigilance can go a long way in protecting them from scammers. You can prevent them from losing their retirement funds and identity by educating them on what to watch out for and telling them about the red flags they might encounter. If they need clarification about the credibility of an institution or a caller, let them know that you are only a phone call away.
