Protecting the People You Love: Spotting and Preventing Elder Financial Fraud

June is World Elder Abuse Awareness Month, an important reminder to look out for the older adults in our lives. Financial exploitation targeting seniors is on the rise, costing older Americans billions of dollars annually. Because scammers use high-pressure tactics and sophisticated technology, understanding their methods is our best line of defense.

Three Common Scams to Watch For

While the storylines of these scams are familiar, fraudsters are now using Artificial Intelligence (AI) to make them even more convincing. AI allows scammers to easily mimic specific voices, create realistic legal documents, and text without standard grammatical errors, making their traps much harder to spot

• Government or Bank Impersonation: Scammers pose as representatives from the Social Security Administration, the IRS, or even a credit union fraud department. They claim a bank account is compromised or taxes are owed, demanding immediate payment via wire transfer, gift cards, or cryptocurrency.
• Tech Support Deception: A pop-up warning appears on a computer screen claiming it is infected with a virus. The victim is directed to call a toll-free number, where a technician requests remote access to the computer and demands payment to "fix" the issue.
• The "Grandchild in Trouble" Scam: A fraudster calls or texts, pretending to be a grandchild who needs urgent financial help due to a legal issue, car accident, or medical emergency. They often plead, "Please don't tell mom and dad."

Red Flags and Warning Signs 

Financial abuse can happen to anyone, but staying connected makes a big difference. Watch for these common warning signs in your loved ones' behavior or finances:

• Uncharacteristic anxiety or secrecy regarding financial decisions or phone calls.
• Sudden, unexplained withdrawals, wire transfers, or large purchases of retail gift cards.
• New, sudden "friends" or acquaintances who show an unusual interest in their finances.
• Changes to important legal documents, such as a power of attorney or a will, that seem rushed.