How to Protect Your Aging Loved Ones from Scams
Scammers are working hard to get their hands on older adults’ money. In 2021, 92,371 older Americans reported fraud that resulted in $1.7 billion in losses.
The numbers are dismaying, especially if you are concerned about your aging parents becoming victims. This article covers the most popular scams aimed at seniors and how you can help protect your loved ones.
The Top 5 Scams
The National Council on Aging reports that of the 8,000 complaints made to a fraud hotline, 65% of them covered the following five scams:
Government representation scams. Crooks call older adults and pretend to be an official from a government agency such as the IRS or Social Security Administration. They make threats that cause the panicking senior to send money or provide information that ends up in identity theft.
Sweepstakes and lottery scams. The caller tells the senior that they’ve won a prize—but the “winner” has to send money to claim their winnings.
Robocalls and phone scams. Crooks use robocalls to prey on aging adults who answer their phones. They may get the senior to speak so they can use the voice signature for credit card charges and other theft. Or they may claim that payment is needed for something like an expiring warranty.
Computer tech support scams. The senior receives a pop-up message on their computer or cellphone that says the device is damaged. The victim then calls a support number and pays a fee or gives the thief free access to the device.
The grandparent scam. The grandparent receives an urgent message from a “grandchild” (who may have gained the grandkid’s name by first asking, “Hi, Grandma, do you know who this is?”). The grandchild is supposedly in financial trouble and asks for help via gifts or money transfers.
Unfortunately, these aren’t the only scams. Thieves capitalize on everything from romance to COVID-19 to prey on aging seniors. Check out the National Council on Aging article to learn more about the scams targeting older Americans.
What You Can Do to Protect Your Parents and Other Loved Ones
You can take concrete steps to help your parents avoid becoming victims. It can be tricky, however, as your parents may feel reluctant to talk about their finances with you.
Respectful communication is critical. The AARP article “Protect Your Parents from Scams” offers the following tips to help you talk to your mom and dad:
Tell them the “why.” As AARP says, you shouldn’t just tell a parent to hang up the phone. Be clear about why. For example, you can explain that Medicare already has their information on file and won’t call to verify it.
Avoid shaming or blaming them. The wrong approach can make your parents defensive. Says AARP: “Remind them what they taught you decades ago: Don’t trust strangers—especially those seeking personal information and money.”
Use reverse psychology. Whatever harmful action your parent is taking, ask them how you can do the same. The fact that they don’t want you to lose money might get them to realize they are losing money too.
Enlist your parents to help other victims. If your parents have been preyed on, talk to them about sharing their experience to help others avoid falling for the scam.
With a foundation of communication, you can take actionable steps such as:
Add them to the Do Not Call and Direct Marketing Association opt-out lists.
Eliminate personal information like phone numbers and birthdays from their social media pages. We suggest making all pages and entries private rather than public. While online, enter their names in Google and see what the sites selling their information have posted. Then contact those sites and get the information removed.
Set up read-only statements from banks and other financial accounts so you can monitor for fraud.
Check their credit reports with AnnualCreditReport.com.
You might also talk with them about adding you or another family member as a “trusted contact” to financial accounts. For example, our fiduciary wealth management firm can now add a trusted contact to certain investment accounts. This enables us to reach out to the contact if we see a potential concern.
A Sobering Reality
Scammers use today’s technology and seniors’ trust to take advantage of them to the tune of billions of dollars a year. Unfortunately, this money usually isn’t recovered, which only tempts the thieves more.
Our fee-only financial planning firm in Roseville and Folsom, CA, and Lehi and Logan, UT, regularly talks to our older clients about how to safeguard their finances. We encourage you and your parents to discuss steps to take in this age of increasing elder scams. With open communication and concrete action, you can help your mom and dad protect what they spent decades building.
Schedule a complimentary, 15-minute call with a fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Roseville and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.