Boost Financial Safety for Seniors

If you have older relatives — parents, grandparents, aunts or uncles — they can be prime targets for financial crime. And while you might routinely trash messages from people requesting gift card payments for services and lookalike companies sending unpaid invoice reminders, the elderly unfortunately can and do tend to fall prey to fraudsters at a higher rate than younger consumers. In fact, the Federal Trade Commission reports that it received nearly a half-million fraud reports from people aged 60 and older in 2021, with losses topping $1 billion.

Here are tips that can help the seniors you care about — and yourself — avoid getting scammed.

Have a Conversation

It’s not always comfortable talking about money with relatives, but it’s important. Remember that many older people may feel that you’re questioning their competency. Be nonjudgmental and start by sharing your own experiences. You might show a couple of fake emails or fraudulent invoices you’ve received to start the conversation: “Can you believe what I got in my email the other day?” Or “Did you happen to hear about this latest scam that’s going around?”

Password Hygiene 

Help your relative set up a password manager so they don’t use the same password for every account. Be careful when selecting a manager; some have no emergency access, so if the master password is lost, you’re locked out. Look for one that supports an “emergency contact,” which would allow that contact to “unlock” the password vault for the owner.

Set Limits and Alerts

Most financial service providers now allow you to set withdrawal limits, instantly lock a card if it’s lost or you suspect fraud, and send texts or emails when a charge is made. Help older relatives leverage these tools so they know what’s going on with their accounts day by day. Setting charge limits is especially useful, and those limits can be temporarily turned off to accommodate a planned, larger purchase. You could also advise them to contact the three major credit reporting agencies and “freeze” their credit, to prevent anyone from fraudulently taking out a loan or credit card in their name.

Protect Their Digital Domain

Electronic devices are the gateway to our entire lives. You wouldn’t leave your house unlocked, so why would you leave devices unprotected? There are many software products that scan for and block malware, exterminate viruses, set up a firewall and even offer identity theft insurance. Consider downloading and installing these tools for your relative and showing them how to use it — or help them find a qualified online security expert to assist with the process.

Discuss Deceptive Practices

Scammers come up with new schemes all the time, but a lot of money is lost to the same old plays each year. Go over common scams and ways to avoid them:

• Emails or phone calls that purport to be from the IRS and demand immediate payment (especially using gift cards). You can contact the IRS independently from their website (not from a phone number or email given to you) to verify any issues.
• Emails or phone calls from a young relative asking for money to pay a kidnapping ransom or bail. Artificial intelligence has made this more dangerous, as thieves can use an actual child’s voice — stolen from social media — to create an authentic-sounding plea. Have your relative give grandchildren, nieces or nephews a “safe word” or phrase they can use to authenticate themselves in an emergency.
• Fake invoices for services that weren’t ordered or received. If you didn’t authorize a purchase, don’t pay it. When in doubt, ask for proof you bought the item.
• Emails or phone calls from trusted companies claiming that something is wrong with your device or account that requires your password or computer access to “fix” it. These often come from “lookalike” email addresses with the company name embedded but are actually spam accounts. Again, contact the company from their website to verify if you’re unsure.

If the worst happens and your relative is scammed, act quickly. Contact the National Elder Fraud Hotline (833-FRAUD-11) for help and resources.

Sources

https://www.cbsnews.com/news/money-scams-elder-fraud-abuse/

https://www.bankfmb.com/protecting-loved-ones-from-scammers