As we age, we often look forward to a peaceful and fulfilling retirement after years of hard work and planning.  Unfortunately, for some of us, this dream is shattered by financial exploitation and scams that leave us vulnerable and devastated.  In fact, the National Council on Aging reports that one in 10 seniors falls victim to some form of financial abuse each year, resulting in billions of dollars in losses.

I’ve seen firsthand how devastating financial scams can be. A close family member, well into retirement, began noticing unusual activity in his accounts. After some digging, we discovered that someone he trusted had been quietly taking his money by making unauthorized transfers and withdrawing funds under the guise of helping with financial tasks.  The betrayal was heartbreaking—both financially and emotionally.  This experience underscored how important it is to stay involved in our loved ones’ financial lives and ensure they’re not navigating these risks alone.

But the good news is we can do something to prevent these scams from happening. Let’s dive into how we can protect seniors from the growing threat of financial exploitation.

Understanding Common Scams Targeting Seniors

Scammers often view older adults as prime targets due to their financial stability and trusting nature.  In 2023, Americans aged 60 and older reported losses exceeding $3.4 billion to fraud—a nearly 11% increase from the previous year.  The most common scams include:

1. Phone Scams: This is one of the most frequent forms of exploitation. Seniors might receive calls from someone pretending to be the IRS, tech support, or even a family member in need of money. These scammers will pressure them to make quick decisions by saying they owe money or that their computer is compromised.
   
2. Online Scams: These can include phishing emails, fake websites, and fraudulent online purchases. Seniors might receive emails that look like they’re from reputable companies, asking for personal information or offering deals that seem too good to be true.
   
3. In-Person Scams: Some scammers will show up in person pretending to be repairmen, contractors, or even charity workers. They might ask for access to the home or request money upfront for services they never intend to provide.

Did You Know?

• Tech Support Scams: In 2023, there were 17,696 complaints about tech support scams targeting seniors.
  
• Growth of Online Scams: Elder fraud complaints increased by 14% from 2022 to 2023, indicating a rise in online scams.

• Underreported Abuse: 1 in 44 cases of elder financial abuse are reported.

• Family Member Involvement: 60% of elder financial exploitation cases are committed by family members or close friends.
  

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Sources:

• Federal Bureau of Investigation (FBI): Tech Support Scam Complaints (2023)
  
• National Adult Protective Services Association (NAPSA): Elder Financial Exploitation Reporting
  
• National Council on Aging (NCOA): Financial Abuse Data
  

How to Avoid Scams and Protect Yourself

The key to protecting against scams is slowing down. Scammers rely on urgency and pressure to get victims to act quickly. Here are some actionable steps that seniors can take to avoid falling victim:

1. Take a Deep Breath: If you feel rushed or pressured by a phone call or email, take a moment to think. Scammers want to catch you off guard, so resist the urge to act impulsively.
   
2. Verify Claims: Always verify any claim you receive, whether it’s from a phone call, email, or in person. Contact the organization directly using the phone number or website you know to be legitimate—not the one provided by the caller.
   
3. Use Technology: Set up call-blocking apps and enable alerts for unusual activity on bank accounts. These tools can help protect you from falling victim to phone scams and financial fraud.
   
4. Ignore Suspicious Links and Attachments: If you receive an email that seems odd or asks for personal information, do not click any links or open attachments. These could be attempts to steal your information.
   
5. Educate Yourself and Stay Informed: The more you know about common scams, the easier it is to recognize them. Consider attending workshops, reading up on fraud prevention, and talking to others about scams they may have encountered.
   

Legal and Financial Steps to Protect Assets

Preventing financial exploitation goes beyond avoiding scams—it also involves taking legal and financial steps to safeguard assets. Here’s how to do that:

1. Create a Power of Attorney (POA): A POA allows you to designate a trusted person to make financial decisions on your behalf if you’re unable to do so. This legal document ensures that someone you trust has control over your finances and can help protect you from fraud.
   
2. Set Up a Will or Trust: Having a will or trust in place is essential to ensuring your wishes are carried out and your assets are protected. This is especially important if you are concerned about potential family members exploiting your finances.
   
3. Monitor Accounts: Regularly check bank statements and set up alerts for any unusual activity. Having someone you trust, like a family member or close friend, help you with this can provide an extra layer of security.
   
4. Consult with an Elder Law Attorney: A professional can help you navigate the complexities of elder law, including setting up trusts, wills, and POAs to protect you from potential exploitation.
   

Resources for Seniors

There are many organizations and resources available to help seniors who are concerned about scams or financial exploitation:

• AARP: Offers information on how to protect yourself from scams, as well as workshops and resources for managing finances in later years.
  
• Federal Trade Commission (FTC): Provides tools for reporting scams and alerts about ongoing fraudulent activities.
  
• National Council on Aging (NCOA): Offers support and resources specifically for preventing elder abuse and fraud.
  

If something doesn’t feel right, trust your instincts and reach out for help. It’s always better to be cautious and ask for assistance than to risk becoming a victim of a scam.

If you’d like a simple way to pause and quickly decide what to do in the moment, you can download the Is This a Scam?” Quick-Action Guide.

Conclusion: Take Action to Protect Your Loved Ones

Protecting seniors from scams is not just about awareness; it’s about taking action. Whether you’re a senior yourself or you’re looking out for an elderly loved one, the more informed and vigilant we are, the harder it is for scammers to succeed. Share this information with those you care about and encourage them to take steps to safeguard their financial well-being. The more we work together, the better we can protect our seniors from financial exploitation and ensure their golden years are truly golden.

Let’s look out for one another and share these important steps with others today. By spreading knowledge and supporting each other, we can make it much harder for scammers to succeed.