Dear Savvy Senior,
Can you offer some tips on protecting seniors from financial scams? My next-door neighbor’s elderly parents were recently swindled out of several thousand dollars and I want to make sure my own mother is protected.
Fraud Fighting Cindy
Dear Cindy,
Senior financial scams are a big problem! In fact, the Securities and Exchange Commission estimates that some 5 million senior citizens are the targets of financial abuse each year. Here is what you should know.
Appealing Targets
While people of all ages can be fleeced, senior citizens are particularly appealing targets to con artists. Why? Money, time and good manners! Seniors tend to have more money to steal, more free time to listen to sales pitches, are less likely to hang up on or cut off a pushy salesperson, and are more trusting than the younger generations.
Scammers
It is not always easy spotting a con. They range from swindlers, to shady financial advisers to slick-talking telemarketers to professional caregivers and relatives who steal from the very people they are supposed to be looking after.
The most common scams targeting seniors today come in the form of free-lunch seminars selling dubious financial products, and high-pressure phone calls and endless junk mail peddling free vacation packages, sweepstakes, phony charity fundraisers and more.
In addition, of course, there is the ongoing problem of identity theft, Medicare fraud, door-to-door frauds, credit card theft, Internet and e-mail swindles and family thieves - which makes up more than half of all financial crimes against the elderly.
Fraud Protection
The most effective way to help protect your mom is to alert her to the different kinds of scams out there that target seniors. The easiest way to do this is by visiting the North American Securities Administrator’s web site (www.nasaa.org - click on Senior Investment Resource Center), where you can get a rundown on some of the most common scams making the rounds these days as well as a Fraud Awareness Quiz.
Also, see www.fraud.org. If your mom does not have access to a computer, print out the materials yourself and use them to start a conversation.
It is also a good idea to keep tabs on her social circle. For example, are you hearing a new name mentioned when you talk to her? Who is giving her advice, financial or otherwise? It is almost like checking up on your kids and whom they are hanging out with. Introduce yourself to the new people entering your mom’s life, just so they know you’re involved with her affairs.
Some additional tips that can protect her include reminding her to never give out her Social Security number or financial information over the telephone, in person or over the Internet unless she initiated the contact.
To consider using direct deposit rather than having paper checks (such as Social Security, disability or stock dividends) sent to her through the mail. In addition, register with the National Do Not Call Registry (www.donotcall.gov; 888-382-1222) which will reduce telemarketing scams.
Spotting a Scam
Helping manage your mom’s money is the best way to spot potential swindles. However, be aware that this can be a very sensitive topic, so be as diplomatic and graceful as possible. The last thing you want to do is make her defensive, but even simple tasks such as looking over her financial statements can alert you to questionable checks or large withdrawals.
If she does not want you looking at her financial records, there are other clues, such as is she getting a lot of junk mail for contests, free trips, and sweepstakes? Is she receiving calls from strangers offering awards or moneymaking deals? Are there lots of cheap items lying around her house like costume jewelry, mini-flashlights or wristwatches, which she may be purchasing in order to win a contest - a common con artist lure.
Also, notice if her spending habits have changed, if she has complained about being short of money lately, or has suddenly become secretive or defensive about her finances. All these may be signs of trouble.
Whom to Call
If you suspect your mom has gotten scammed report it to your state securities regulator’s office (visit www.nasaa.org to find yours). Even if you are not sure, it is important to get regulators involved. They may be able to connect the dots in ways you cannot.
Send your senior questions to Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit www.savvysenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” books.
