What To Do If Your Elderly Parent Is Being Scammed
According to the FBI, Scams targeting individuals aged 60 and older caused over $3.4 billion in losses in 2023.
It’s tough to think about your strong, capable parent being the victim of a scam one day. The sad truth is that scammers are clever criminals who are skilled at targeting vulnerable seniors. Many victims don’t want to admit they’ve been cheated, or they neglect to take action because they’re embarrassed to have been duped in the first place — and that’s if they even become aware of the scam.
Know the Warning Signs of Elder Financial Abuse
The first step in stopping an elderly parent from being scammed is recognizing the signs of financial abuse. Look for these warning signs:
- There are bank withdrawals your parent can’t explain or doesn’t want to talk about
- Your parent’s monthly bills are unpaid even though they should have enough money for expenses
- Legal documents have been changed or are missing
- There are new “helpers” or friends who know more than they should about your parent’s finances
- Someone is discouraging your parent from speaking to or spending time with other family members
- Your parent’s behavior changes — they seem distant or non-communicative
If your parent appears frail or confused, they are at a higher risk of being scammed.
Taking Action Against To Report Suspected Scammers
If you have a good reason to suspect a scam, talk to your parent before taking action. Ask questions without accusing them of wrongdoing. Questions like “How could you let yourself be fooled?” can lead to shame and may cause them to shut down. Let them know you are here to help and to listen.
Being scammed doesn’t necessarily mean a person is no longer capable of handling their finances. Smart and capable people can get taken in by financial scammers. However, if there are signs of cognitive decline, it may be time to consider assigning a financial power of attorney.
Together, you and your parent can take these steps to report suspected scammers:
- Report the incident to the local police
- Visit the Federal Trade Commission website
- Contact the National Adult Protective Services Association
- Freeze credit reports to prevent further losses
- Change all passwords and PINs
- Directly contact financial institutions and ask them to monitor suspicious activity
If your parent is unwilling to take action and you do not have legal authorization to change their account information, there may be little you can do to stop the scammer from taking more money. However, you can still report your suspicions to the authorities. The fact that you have taken any action may be enough to stop the scammer.
Protect Your Elderly Parent From Financial Scams
Preventing a financial scam is easier than recovering from one. There are effective strategies you and your parent can take to safeguard personal information and minimize the risk of being scammed.
Protect Passwords
Concerns about forgetfulness may cause the elderly to use simple passwords or use the same password for every account. Encourage your parent to create a unique password for all of their online accounts, especially bank and email accounts. They can share these passwords with you for safekeeping. Combining biometrics with passwords also improves safety.
Limit Online Information
Many people today are unaware of how many online accounts they have. Scammers can use online information to steal money or identity. Remind your parent that every online account they open puts them at greater risk.
Know the Red Flags
Elder financial scams typically fall into three categories: investment scams, imposter scams, and lottery or prize scams. Let your parent know what to look for. Here are some of the most common ways scammers trick people out of their money:
- Threats like “Your account will be hacked if you don’t buy this protection” or “Your Social Security check will be delayed if…”
- Any request for personal identifying information such as a Social Security number or bank account details
- Pressure to act fast on a deal
- An offer that sounds too good to be true
- Contact from a “long lost” relative who needs money desperately
- Claims that you have won a prize, but you first need to pay a fee for shipping
Any email or phone call that seems off can be a scam. For example, a supposed letter from the IRS with typos or letterhead that is similar to but different from the official IRS emblem is likely a scam.
Share Scam Stories
It’s understandable that anyone who has been scammed may feel embarrassed, but sharing their story could prevent others from being victims. Encourage your parent to warn their peers about elder scams. Consider joining a support group to learn how to become an advocate for others.
Check Credit Reports Regularly
Checking your parent’s credit report at least once a year allows you to catch any discrepancies early. To ensure you’re using a safe and reliable credit check agency, go to USA.gov for more information.
Stay Alert for Elder Scams
The crime of elder fraud is on the rise. Your parent could lose all of their retirement savings and their home if they are taken in by a scam.
Your parent may be more agreeable to talking about scam prevention than admitting they have already been scammed. If they have been the victim of a crime, remind them that talking about it may keep others from falling for the same type of fraud. Take the necessary steps to protect your parent from a financial scam.
