
The phone rings. The caller says they’re a customer service representative from your bank. They claim that your bank account has been compromised and need your PIN to confirm your identity. They recommend that you drop your debit card in your mailbox so they can send you a new one. A few hours later, they take your card and proceed to make withdrawals. Would you have fallen into this trap?
Senior citizen fraud, or financial exploitation of the elderly, is when a scammer tries to financially abuse a vulnerable individual. Whether by phone, by mail, or on social media, fraudsters show ingenuity in the ways they squeeze money out of people – particularly the elderly – and commit financial abuse. It’s important to be able to detect the red flags in order to protect yourself and avoid being a victim of exploitation.
1. Telemarketing scams
This is a strategy in which cybercriminals contact a person and get them to make a remote transaction. A few years ago they contacted people mostly by phone, but these days, telemarketing scams can be done by email, text message, or any other communication channel.
Here’s an example: you receive an unwanted call. An automated voice congratulates you for having won a cruise to the Caribbean. If you pay a fee to save your spot, you can set sail as soon as you can. The catch? You never entered a contest to win a cruise trip. As a good-hearted person, you’re tempted to make the transaction. However, this is a common fraud technique that would lead you to being shortchanged.
2. Romance scams
Rather than trying to sell you a product or service, the scammer seeks to befriend their victim, and eventually make them fall in love with them. It’s a long con that will lead to the fraudster claiming to need your help.
Here’s how it usually goes: the fraudster finds a vulnerable individual, starts talking to them, and slowly builds a relationship of trust with them. Scammers can learn a lot about you by looking at your social media. They can view your interests, read your status updates, and figure out your needs and desires. They look for single people and exploit their vulnerabilities, hence the importance of adopting good habits when it comes to cybersecurity.
Once they’ve established trust, that’s when the fraudster hits. They’ll come up with a ruse and feign needing help. They may claim to have financial problems and ask that you send them some money to help them make ends meet. Or they may take advantage of your generosity and say that they want to meet you in person, but need travel money to come see you.
3. Grandparent scams
Also called grandchild scams, this type of fraud incites a vulnerable individual to make an urgent financial transaction in order to help a loved one who they believe is in trouble. Your emotions, your family relationships and, most of all, guilt all come into play. The fraudster contacts an elderly person by phone and pretends to be their grandchild. They avoid using the grandchild’s name, making the victim guess and provide it themselves. As the conversation continues, the scammer convinces the victim that they are truly talking to their family member.
Here’s the most common scenario: “I just got into an accident and I’m going to need a lawyer. I don’t want Mom or Dad to find out. That’s why I called you. I need $5,000 by the end of the day, otherwise I might go to jail.” If the crook gets the answer they’re looking for, then they ask their victim to send the money to a bank account, claiming that it’s the lawyer’s trust account. This scam really plays on urgency to get the victim to comply.
There are many signs that can help you figure out if a fraudster is trying to scam you:
Cybercriminals are actors, in a way. They’re prepared and put on a performance to take advantage of your good faith. Doubt is your greatest asset in protecting yourself from bank fraud; don’t be hesitant to ask questions. Heightened vigilance will help you detect when someone is putting on an act. Then, you can do what you need to in order to protect yourself.
If you think you’ve been a victim of financial exploitation, don’t feel bad. This kind of thing can happen to anyone. Here’s what you can do to report the issue:
Whether you need it yourself or if it’s for a loved one, there are many resources to help protect you from fraud. Here are some external websites that could be useful both before and after the fact:
Think you know an elderly person who’s been a victim of fraud? Check out the It’s Not Right! initiative, which offers advice and strategies to get a handle on the situation.
For more advice and resources, check out our Protection for Seniors portal. For your questions, we're here to help.
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