Preventing Elder Financial Abuse
As we discussed in our last post, elder financial abuse robs older Americans of billions of dollars in money, property and other assets every year. As those safeguarding their customers’ finances, community bankers are key watchdogs for monitoring and preventing this abuse.
As relationship lenders and financial first responders, community banks are in a unique position to help shield our elderly customers against these prevalent threats through employee training and the use of technology to spot red flags and report suspicious activity to authorities.
Resources to Assist
At ARB, we believe that education is the key to prevention. Education starts with our front-line staff, and our bankers are specially trained in red flags that might indicate financial exploitation. We offer in-person presentations in local forums such as Rotary Clubs, church groups or retirement communities.
In addition:
- We leverage our podcast platform to discuss topics with local law enforcement and victims’ advocates dedicated to preventing chronic victimization
- We maintain a Safe Banking for Seniors page on our website at ARB.bank that includes red flags and helpful links for more information or reporting abuse
- You can visit our financial education page for tips, including how to protect your bank account
As June is National Elder Abuse Awareness Month, we wanted to continue our effort to provide our clients and their family members with tips to guard against financial exploitation. In addition to the scams discussed in our last post, there are other common scams to watch out for.
Medicare/Health Insurance Scams
It is difficult to imagine that someone could prey on those in need of medical assistance, but unfortunately, Medicare fraud is all too common. Criminals are posing as Medicare or medical supply representatives to obtain personal information or provide bogus services and use the information to bill Medicare or assume an identity to perpetrate fraud.
As a good rule of thumb never share personal or financial information with anyone who contacts you out of the blue.
Zoom, Phishing Emails, and Online Takeover
Con artists are also capitalizing on the rise in video meetings, registering thousands of fake Zoom-related internet domains to send phony emails, texts, or social media messages to trick consumers into clicking on bogus links to address “account suspension” or “meeting” notices. Those that took the bait inadvertently downloaded malware (malicious software) on their computer, exposing their personal information to potential use by fraudsters.
Internet scammers are also known for sending fake text messages alleging trouble with an internet account, credit card, bank account or shopping order. Many contain realistic looking logos to lure you into clicking on a link and divulging personal information.
To limit your exposure, avoid clicking on links from unsolicited emails or texts. If you suspect a problem with an account contact the bank or service provider directly.
Telemarketing/Phone Scams
Seniors conscious of etiquette may frown upon “hanging up the phone” or simply saying “no” to unsolicited calls, but it also leaves the door open to criminals posing as company representatives. It is important to know the red flags that might indicate the caller is not who you suspect they are. Three notable examples include:
- The pigeon drop where con artists pretend to share found money in exchange for a "good faith" payment drawn from the contacted person's bank account.
- The fake accident ploy where con artists create a false narrative that al oved one has been injured in an accident and needs money for medical expenses.
- Charity scams where con artists solicit funds on behalf of a charity for which they are not affiliated with or is not legit.
Remember, if it’s too good to be true, it probably is. If you want to give go directly to the source. And if you are worried about a friend or family member, verify the information with them directly.
Unfortunately, scams are always changing, making fraud nearly impossible to fully eradicate, but we’ll never stop looking out for your benefit and encourage you to consult the Federal Trade Commission’s “scam alert” page for information about the latest scams targeting consumers.
Our community bank employees are trained on the latest fraud prevention techniques and are available as a resource as well. They can help you spot potential scams and take appropriate measures to protect your account if you suspect you have been a victim of financial fraud.
Factoids
- Adults 60 and older were 45 percent more likely than adults aged 20-59 to report losing money to a friend or family impersonation scam, according to the Federal Trade Commission.
- Roughly 20 percent of older Americans fall prey to financial exploitation totaling $3 billion annually or an average of $120,000 per elderly victim, according to a study from the AARP Public Policy Institute.
For more information read our Elder Financial Exploitation Blog.