According to the National Council on Aging, older adults lose billions of dollars each year to financial fraud and scams. Because seniors are often targeted and more vulnerable to these schemes, it’s essential for caregivers to stay vigilant. By taking proactive steps, caregivers can safeguard their loved ones’ finances, protect them from exploitation, and ensure their long-term well-being.
Why are Seniors at Risk for Financial Fraud?
Older people have a higher risk of becoming a victim of a financial scam for numerous reasons. Cognitive decline, for instance, impairs judgment and slows processing speed. These factors make it harder for affected seniors to recognize and avoid attempts at fraud.
Loneliness and isolation also contribute to victimization. Seniors who lack a social network with whom to confide in about suspicious scenarios are more vulnerable to fraud. Con artists exploit lonely seniors’ needs for connection and companionship and target them in financial scams.
Seniors retired from the workforce usually have accumulated significant wealth and assets, which are attractive to thieves. Fears of losing independence cause older fraud victims to fail to report the financial abuse to loved ones, which allows the swindlers to perpetuate their scams.
Opportunities for exploitation abound when the elderly rely on family or others to manage their finances. Fraudsters also target seniors who are vulnerable, such as those battling grief after the loss of a spouse or older people who are suffering a health crisis.
How Do Caregivers Keep Seniors Safe from Financial Fraud?
1. Start a Financial Conversation
Families should discuss their elderly loved one’s financial well-being. Rather than focus on aging, families might start with their own situation: “I’d like my accounts to be monitored and be notified of suspicious activity. Can I do the same for you?” Making it a two-way street is easier to hear.
2. Be Available to Give Advice
Scammers groom socially isolated seniors, knowing they are eager to speak with a friendly voice. Families should offer to examine screenshots of suspicious texts or be available to discuss phone calls where unreasonable demands are made. Try to give advice before the senior acts.
3. Alert the Senior About Red Flags
Fraudsters impersonate popular businesses, like Amazon, in hopes of exploiting elderly customers who trust those brands. Advise the senior to be alert to red flags, like messages that contain typos or misspellings. Payments requiring gift cards or prepaid debit cards is a telltale sign of a scam.
If the senior receives communication they believe is valid, it’s still advisable they practice a healthy dose of skepticism. Ask the older adult to verify the message by calling the number on the company website. A senior should never send money to someone without first verifying their identity.
4. Resist Urgency
Creating a sense of urgency is a prime tactic scammers use to persuade the elderly to give in to their demands or make impulsive decisions. By suggesting a product is only available for a limited time, the older adult has less time to think through the situation.
Instead, families should encourage the senior to take time to think about an offer and resist making snap decisions. Ask to see the product in person or request a service contract, if applicable. Online, use payment methods, like credit cards that offer reimbursement for products that aren’t as stated.
5. Increase Awareness of Scams
Families should brief their elderly loved ones about current financial scams. These include romance scams where criminals pose as romantic interests, tech support scams intended to fix non-existent computer issues, and sweepstakes scams, where the senior must pay a fee to collect the award.
Additional common scams include home repair scams, where the con artist charges the senior in advance for home improvement services they never provide. Relatives or acquaintances can also financially exploit or otherwise commit financial abuse to obtain the aging person’s money.
6. Verify Calls
Criminals call seniors out of the blue, for instance, posing as a distressed grandchild needing money to pay an urgent medical bill. It’s critical that the elderly verify the identity of the person. Hang up and call the “grandchild” back to verify the caller is who they claim to be.
Advise the senior to never give money they can’t afford to lose. If money is sent, avoid using a payment app, which does not allow cancellations. Remember that a loved one, like a family member, would never put the older adult in a position of financial risk.
7. Report the Scam
Seniors who fall victim to a financial scam should not feel ashamed, as that allows criminals to continue their attacks. Rather, urge the older person to file a report with the FBI Internet Crime Complaint Center, the Federal Trade Commission, or the Better Business Bureau Scam Tracker.
Protecting the elderly from financial scams is done by increasing their awareness of prevalent scams, warning them of red flags, and being available to discuss suspicious communications. Combat loneliness to make seniors less vulnerable to criminals out to capitalize on their isolation.
Elderly Home Care from Assisting Hands
Families can trust the professional caregivers at Assisting Hands Home Care to help reduce the risk of their elderly loved ones falling victim to financial scams. We provide a wide range of home care services that not only support seniors’ physical needs but also nurture their emotional and social well-being.
Our caregivers are compassionate companions who ease loneliness and prevent isolation by engaging seniors in meaningful conversation, playing stimulating games, and accompanying them on community outings. We also provide safe transportation to essential destinations such as medical appointments, senior centers, and local events because staying socially active is vital to maintaining emotional health.
In addition, we guide families with helpful resources on important matters such as estate planning and power of attorney. Every caregiver on our team is licensed, bonded, and insured, giving families peace of mind that their loved one is cared for by a trusted, thoroughly vetted professional.
Quality elder care from Assisting Hands Home Care is available to seniors living in Hinsdale, Burr Ridge, Downers Grove, La Grange, Oak Brook, Western Springs, and the surrounding areas in DuPage and Cook counties . Our caregivers fulfill the nonmedical care needs of the elderly. Call at (630) 407-1932 to schedule a free in-home consultation today and learn how compassionate senior home care keeps the elderly safe and healthy.
