Senior Fraud Prevention
The prevalence of financial scams targeting seniors is consistently increasing, driven by various factors that make them vulnerable targets:
- Valuable Assets: Seniors, with homes, substantial savings (“nest egg”), and excellent credit, are attractive targets for thieves.
- Poor Witnesses: Seniors, especially those with memory issues, may be ineffective witnesses, making it easier for thieves to operate undetected.
- Politeness and Trust: The older generation’s upbringing, emphasizing politeness and trust, becomes exploitable traits for con artists.
- Reluctance to Report: Seniors are less likely to report scams, either due to feelings of shame or unawareness that they’ve been victimized.
Common scams affecting the elderly encompass a range of deceptive practices, including cemetery and funeral scams, counterfeit prescription drugs, fraudulent anti-aging products, health insurance/Medicare scams, homeowner/reverse mortgage scams, internet fraud, investment schemes, and sweepstakes/lottery scams.
Monitoring Financial Well-being To safeguard against potential fraud, it’s crucial to monitor the financial health of your loved ones:
- Credit Report Surveillance: Regularly monitor credit reports from major agencies, such as Equifax, Experian, and TransUnion. While a free annual credit report is available, consider checking more often. Scrutinize for consistency, close unused accounts, and identify inaccuracies. If your loved one no longer manages finances, consider placing a credit freeze through reporting agencies.
- Thorough Account Review: Scrutinize all financial accounts, including bank and credit card accounts. Examine income and expenses, ensuring accurate accounting for all income and covering necessary expenses. Be vigilant for items that appear fraudulent.
- Prompt Action: If fraudulent activity is suspected, take immediate action. Report any suspicions and seek the necessary support to address and rectify the situation.
Encourage Reporting and Seeking Help In the unfortunate event of a senior citizen falling victim to fraud, encourage them to report the incident without fear or embarrassment. Remind them that everyone is susceptible to fraud and identity theft. Reporting can be done with local law enforcement and the Canadian Anti-Fraud Centre.
By following these steps and fostering a culture of openness around reporting, you can play a vital role in protecting your loved ones from financial scams and identity theft.