Seminar on Elder Abuse. As an employee of Seniors’ Choice at Home, I occasionally have the opportunity to attend local presentation on elder care. Recently I attended a presentation on Financial Abuse, Boundary Issues, and Setting Limits with Families. The speaker was Mary Frances Price for the Maser/Amundson/Price law firm. Price was an excellent speaker and gave participants a plethora (I love that word!) of information in an hour. Most interesting for our clients, families and employees, I think, are the reasons Price suggested for why seniors are targeted for scams, cons and fraud.
1. People over 50 control more than 70% of the wealth in the U. S.
2. They often have others involved in their financial matters—either family members or paid advisors.
3. Many seniors have very predictable financial activities (for example, seniors receive Social Security checks on the same day every month and often pay bills shortly after that.)
4. Technology has created new ways to commit fraud.
5. Scammers use the politeness of seniors who find if difficult to say “no” or just hang up the phone.
6. Seniors are less likely to report fraud because they are ashamed to admit they have been taken in by scammers, or they aren’t sure about how to go about reporting it.
People who are at risk are those who are isolated, lonely, depressed, frightened, suffered recent losses, secretive or hesitant to talk freely. Also at risk are those with mental or physical illnesses or disabilities, those who lack familiarity with financial matters (think of the widow or widower whose spouse has always taken care of finances,) those who are helping out unemployed family members or who have family member with substance abuse problems.
“Money request” scams can take many forms. The grandparent scam is where the scammer poses as a grandchild in danger and asks for money. Fake Check/Lottery scams is where the scammer sends a fake check and asks the victim to cash the check and wire a portion back to the scammer for “taxes” of “fees.” There are also bogus charity scams.
To avoid getting scammed:
1. Verify the identity of the person requesting money even if they say they are a family member
2. Verify the identity of unsolicited checks or purported lottery winnings.
3. Verify the authenticity of charitable organizations
4. Do NOT agree to secrecy; tell the solicitor you never make decisions over the phone, tell them to send something in the mail (only if it’s something you believe is legitimate and may want to contribute to) and contact a trusted family member, friend or advisor about the request.
5. Do NOT wire money to strangers; there is not good reason for a stranger to request wired funds.
Some other scams to watch out for:
• Investment/Sales scams—remember, there are NO “get rich quick” opportunities. If it seems like it’s too good to be true, it probably is.
Do not be afraid to hang up the phone or close the door.
• “Phishing” scams are when scammers attempt to obtain sensitive information (SSN, Medicare/Medicaid numbers, credit card/band account numbers, usernames/passwords.) These requests often sound or look (it is not very difficult to get logos from websites and make documents look like the real thing) legitimate. (If, for instance, you receive a phone call from your credit card company reporting a suspected fraudulent use of your credit card, do NOT give the caller any of the above information. Instead, hang up and call the number on the back of your card and ask to speak to the fraud division.) There are almost no legitimate reasons for someone to initiate contact to request sensitve personal information by email of phone.
Some other tips:
• Shred all personal documents and credit cards before throwing them away. (And yes, thieves do actually go through dirty garbage and put torn sheets of paper back together in order to get information they can use to steal your money.)
• Protect incoming and outgoing mail.
• Obtain a credit report and report any suspicious expenditures
• Equip you phone with caller I.D. Be careful about calls from “unknown” or “private” numbers.
• If something doesn’t seem right, talk to someone about it.
• Use common sense—do NOT make any immediate decisions; tell the caller/solicitor that you always consult with your family/financial advisor before you make decisions.
Some warning signs of financial abuse:
1. Unpaid bills, eviction notices, notices to discontinue utilities
2. Unusual bank withdrawals/transfers
3. New friends who “help” with finance management
4. Changes in spending patterns
5. Missing property, financial documentation, check books/blanks, credit cards, ID cards and implausible explanations
6. Suspicious signature
7. Financial arrangements that the seniors is unaware of or that he/she doesn’t understand or remember signing.
Who to Contact:
In Minnesota, the Common Entry point for your county, the State Office of Ombudsman for Long-Term Care, the Elder Care Rights Alliance, or the police. New Minnesota law now provides not only steep financial penalties for financial abuse, but also includes up to a 10-year prison sentence.
Powers of Attorney can be individualized per client and can include limiting the authority of the agent, if more than one agent, they can be required to “act together,” can prohibit or limit gifting/self-payment, and can require regular accounting.
Bank statements can be sent to multiple family members, and families should hold regular family meetings to discuss/explain financial decisions.
Seniorliving's Weblog 