Outfoxing The Predators: Helping elders avoid fraud

OUTFOXING THE PREDATORS

Protecting yourself from Fraud and Scams

Older Adults At-Risk

Longer life means more time relying on others for care.

Greater likelihood of interacting with people willing to commit fraud.

Estimated average loss of income to financial exploitation in later life – $50,000 - $100, 000

THE PREDATOR…

…In Disguise

Promise

The

Exploitation and Cognitive Decline

With the increased age making sound decisions may be impaired.

Mild Cognitive Impairment, or changes in daily living puts an elder at significantly greater risk of financial exploitation.


Decreased ability to Grasp Concepts:

Impaired financial knowledge Newly widowed may result in suddenly being in charge of household finances


Counting, SequencingDecreased ability to

manage finances- balancing check book, monitoring purchases

Diminished Performance Skills:


Decline in Judgment

Decline in ability to calculate risks using insight or logic to discern sweepstake scams, lottery

Less discerning about one’s motives and intentions

All setting the elder up for being targets of abuse:

Physical Finance

Opportunity

PerpetratorThe

The Fraud Triangle

All have a commonality

Motive

Rationalization

Opportunity

of financial exploitation is committed by a family member

70%

“Early Inheritance Syndrome” may be the

initiator.

National Center on Elder Abuse

Self Neglect: 38%

Neglect: 20%

Emotional: 15%

Financial: 16%

Physical: 12%

Sexual: 1%

Other: 1%

Types of Abuse

National Center on Elder Abuse

Neglect: 32%

Financial : 25%

Emotional: 23%

Physical: 17%

Sexual: 1%

Other: 1%

Types of Abuse

(Excluding Self Neglect)

Financial Exploitation

An act or omission committed by a person who:

Uses deception, harassment, intimidation, or undue influence to permanently or temporarily deprive an at-risk elder of the use, benefit, or possession of his or her money, asses or property.


• Theft• Coercion –Moving in and taking over• Borrowing with no intent to repay• Misuse of fiduciary powers• Undue influence


Warning SignsIsolation of adult; reliant on caregiver

Caregiver has total control over finances

New acquaintances suddenly show up

Elder charmed by or fearful of caregiver

Appearance or payment schedule out of character

Requests for unusually large sums of money

A hovering care giver /child

Confusion surrounding missing funds or ISF

Drug seeking behavior by family; caregiver

Warning Signs

Charitable Fraud

• Is long on emotion – short on detail

• Uses similar names of trusted

organizations

• Pressures into giving acct number

over phone

• Offers to send a courier to pick up

contribution

Warning Signs

Charitable Fraud

Beware of wiring

money!

Prevention

Charitable Fraud

• Refuse high pressure appeals

• Never agree to anything over the phone

• Request written information on the charity

• Check with BBB to verify legitimacy

• 1-800-222-4444 or www.give.org

http://www.give.org/

Telemarketing Scams

• Never give out personal information unless YOU initiate the call

• Get on state and national “No-Call” listsHang up!

Investment Fraud

Social Consensus: Leading individuals to believe that other investors ‘just like them’ have already invested, e.g., other church members, or members of a particular ethnic or cultural group.

Investment Fraud

Tactics:

Investment Fraud

Tactics:

Source Credibility: Any claim of a guarantee, or a high rate of return on investments from a “trusted” source, e.g., a pastor, a long-time advisor, friend

Investment Fraud

Tactics:

Scarcity: Any high pressure sales pitch – MUST BUY NOW! (False sense of urgency by claiming limited availability or supply)

Investment Fraud

• Never invest on the basis of faith or trust!

• Don’t depend on

one advisor

Prevention:

Investment Fraud

Call State Securities Division to

verify:

• The registration of a security

• License number of financial

advisor

• Be cautious of investment

luncheons

Ask questions – it throws

solicitors off track!

Prevention:

Transient CrimesRoof Repair

Curb Number Painting

Gutter Cleaning

Psychic Readings Air Duct

Cleaning

ID Theft 1. Purse: Most

Common

2. Mail3. Telemarketing Fraud4. Trash

5. Vehicles6. Home Theft 7. E-Mail (Phishing)8. “Skimming”9. E-Mail Hacking10. Employee Theft

Most Common

Least Common

ID Theft

• Keep credit card in sight at all times

• Use electronic funds transfer & direct deposit

• Review financial statements regularly

• Question businesses who request SSN

• Update virus protection software regularly

• Keep all papers locked up at home

Prevention:

Questions?

Economy & Finance

Outfoxing The Predators: Helping elders avoid fraud