The U.S. Attorney General and law enforcement partners announced the largest coordinated sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 faced criminal prosecution. In each case, offenders engaged in financial schemes which targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more five hundred million dollars.
Types of Elder Scams
Phone Scams
Con artists and scammers employ different schemes to defraud seniors of their identities and assets. Many such scams are conducted over the telephone. For instance, criminals pose as Internal Revenue Service (IRS) agents claiming the senior who answers owes back taxes. Another scam involves frightening grandparents by alleging their grandchild was arrested and in need of bail. Other scammers promise prize money in exchange for a “processing fee” required to collect their “winnings.” Seniors often fall for social-engineering schemes. And the situation is expected to worsen as seniors increasingly rely on technology.
Online Scams
Romantic Scams
Romance-based scams are yet another potential pitfall for seniors relative to fraud. The attacker typically befriends multiple senior citizens online, asking for money to cover “travel expenses” to visit them. This prospect often appeals to seniors who feel isolated and lonely.
Shopping Scams
Scam artists also turn to online shopping to defraud the elderly. Using a photo of a desirable object, the scammer pretends to offer the item for sale. Instead of delivering, however, the scammer repeatedly resells the item to thousands of seniors. Using a fake “mirror website” that appears to be a legitimate online auction house (such as eBay), the fraudsters drain seniors’ bank accounts. What’s more, they can use the senior’s financial information to secure credit cards and apply for loans. Masquerading as official websites, these websites often pop up in senior email accounts. Clicking on the link for an attractive product could download malicious software.
Elder Scams Not Relegated to Those with Dementia
And these scams are not directed to senior citizens who have dementia. In fact, of the 27% of seniors who fall victim to financial exploitation, 67% do not exhibit symptoms of cognitive decline.
According to the Federal Trade Commission’s (FTC) Consumer Sentinel Network Data Book 2017, identity fraud ranks second to debt collection, with regard to consumer complaints. Identity fraud accounted for 14% of all consumer complaints last year. The FTC also reports that seniors who are financially exploited suffer higher median losses than other age groups. Many elderly victims feel embarrassed, ashamed, or scared following the scam. Most report not having seen themselves at risk. They also fear retribution from the perpetrator, and worry government agencies or family members will label them unfit to take care of themselves.
The best defense for this type of scam is prevention:
- Talk to your elderly family member to make sure he or she is aware of this type of scam. Although doing so may not prevent them from falling for the con, alerting them to the risk might help.
- Install systems which monitor senior accounts and make their money less easy to access by scammers.
- Create legal documents which can protect senior’s financial accounts during their lifetime, which lessen the chance of fraud or abuse.
Contact Skvarna Law Firm for information about how to help you or your loved ones reduce the chance of elder fraud or abuse.
About Skvarna Law: Estate Planning, Elder Law, Probate, Trusts, and Wills
Skvarna Law Firm operates offices in Glendora and Upland, California and provides legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
