How Scams Target the Elderly

Scams among elderly adults are increasing with the anticipation they will accelerate in the coming years as the elder population increases. According to a recent study by the MetLife Mature Market Institute, the elderly lose at least $2.6 billion to thieves, many of who are their own family members.

Scams are underreported

Unfortunately, these estimates are likely low as many elderly are afraid to report a scam or a theft by family members for fear of being viewed as being incapable of making financial decisions or being incapable of living independently.

Many of today’s scammers are themselves elderly adults who have a keen understanding of the elderly’s habits and are more likely to be viewed as trustworthy by the elderly than their younger counterparts.

One of the most popular scams is to approach the elderly to initiate a reverse mortgage then use that money to purchase an annuity or pooled insurance policies (similar to the bundled mortgages that contributed to the housing collapse) where the policies themselves do not exist.

What to watch for

If you are the adult child or a relative of an elderly adult there are a number of behaviors you can watch out for that may provide clues if your loved ones are being victimized. These include the following:

• The elderly individual receives considerable junk mail advertising for free trips or prizes.
• The individual receives frequent phone calls from individuals offering free trips, money-making opportunities, or charitable donations.
• The individual is approached at home by a contractor or repairperson who just happens to be in the neighborhood and notices the individual needs a new roof, windows, doors or gutters,
• The individual has acquired many cheap items that they purchased in order to win something.
• The individual has written numerous checks or made repeated withdrawals for payment to unfamiliar out of state companies.
• The individual has exhausted their liquid assets and is now having difficult paying bills or buying food.

How to guard against scams

First, have a calm and direct conversation about the various types of fraud and make a list of these frauds and what to do if a scam artist approaches the elderly person.

Second, provide the elderly individual with a list of questions they should ask when called by telemarketers and what information they should obtain from the caller. Have them call a friend or relative of they believe a scammer has solicited them.

Third, post a “no solicitation” sign on the door and if a solicitor appears have the elderly individual contact the police or a relative.

Fourth, assist the individual in having their name placed on state and national do not call lists.

Fifth, if the elderly use the Internet warn them not to purchase anything with their credit card or assist any individual who contacts them by email with a financial offer. If they wish to purchase something, tell them you will provide them assistance.

Finally, encourage the individual to hang up on phone solicitors and do not answer the door when someone appears uninvited.

Randy Ryder is a Professor Emeritus at The University of Wisconsin-Milwaukee and is a publisher of Elder Parent Help.

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