Financial exploitation is the most common form of elder abuse, costing elder Americans billions of dollars each year. Surprisingly, it is estimated that less than 3% of elder financial abuse cases are reported to a protective services organization. An overwhelming number of these victims never recover. Many times, elder financial abuse involves friends, family members, and acquaintances of the victim. A family member or caretaker may feel entitled to the victim’s money, and may begin stealing small amounts, or even demanding money from a vulnerable adult. Not all perpetrators are strangers to the victim, in fact, it’s more likely that an elder abuse victim knows their abuser!
In addition to elder financial abuse, there are on-going scams targeting the elder population to gain access to their finances. Common scams are:
- Romantic Scams: Scammers will take advantage of lonely, vulnerable adults who are looking for companionship, usually through websites and online dating apps.
- Grandparent Scams: Scammers contact a victim by phone, posing as a relative, and ask for financial assistance.
- Impersonation Scams: Scammers pretend to be with a governmental agency, such as the IRS, and threaten to arrest or prosecute the victim unless a payment is made.
- Sweepstakes/Lottery/Charity Scams: Scammers lie about working with an organization, claiming that the victim has won a prize – usually foreign lottery or sweepstakes. In order to receive the prize, the victim is asked to pay fees and/or taxes.
- Tech Support Scams: A scammer gains access to a victim’s personal information by offering technology support for a computer, tablet, or phone. The scammer will help in exchange for payment through wire transfers or gift cards.
- Phishing: Scammers use fake emails or websites, usually made to appear as coming from a legitimate financial institution, in order to steal a victim’s personal information. The emails typically use verbiage indicating an urgent need to verify account information.
- Cryptocurrency Fraud: Scammers sends a message, offering an investment opportunity with cryptocurrency, claiming that this “investment” has low/no risk and guaranteed profits.
- Email Extortion Scams: In this high-pressure scam tactic, a scammer sends an email to the victim, and threatens to reveal private or personal information, unless a payment is made, usually in the form of BitCoin.
- Fake Check/Overpayment Scams: A scammer sends a check to a victim, claiming it to pay for an item, to award prize winnings, or to participate in a mystery shop. The victim is asked to cash the check, and to send a portion of the check proceeds back due to overpayment or to cover fees.
Elder financial abuse is a growing concern, however there are things you can do to protect yourself or your loved ones from becoming a victim:
- Immediately report abuse (or suspected abuse), fraud, or theft to local law enforcement and the financial institution.
- Consider giving a trusted relative or friend access to help monitor transactions. (This should be a VERY trustworthy relative or friend!)
- Never divulge any personal information such as account numbers, debit or credit card numbers, social security numbers or any other private information, especially if you did not initiate contact with the person, company, or organization.
- Review all banking account and credit card statements each month, and immediately report fraudulent or unauthorized activity to your financial institution.
- Contact the Office of Victims & Crimes’ National Elder Abuse Hotline at 1-833-FRAUD-11 or visit https://justice.gov/stopelderfraud if elder financial abuse is suspected or has occurred.
Protecting your financial life is important to us. If you or a loved one are a victim of any form of financial exploitation, please notify us immediately so that we can take necessary steps to help keep your money safe.
Additional Resources:
Office of Victims & Crimes
National Elder Abuse Hotline: 1-833-FRAUD-11
Website: https://justice.gov/stopelderfraud
Federal Trade Commission
Report Fraud: https://reportfraud.ftc.gov/
Report ID Theft: https://www.identitytheft.gov/
Gulf Coast Community Federal Credit Union
228-539-7029 (during business hours)
866-539-7029, Option 5 (for after-hours, weekends, holidays)