Consumer Advisory
For Immediate Release: October 3, 2016
Who’s at risk for elderly financial fraud and exploitation? Our society is aging. Every day in the United States, 10,000 people turn 65. These numbers are unprecedented, and coupled with the vast wealth controlled by people entering their retirement years, have created a large target for fraudsters, scammers, and crooks. Often, when it comes to financial crimes, once the money has been handed over it’s gone; spent on lavish lifestyles or in the commission of additional crimes. The best way to avoid victimization is to recognize if you or someone you love falls into the category of “at-risk” for financial abuse. Here are a few indicators that might signal that some extra care needs to be taken to avoid becoming a victim: Living and Health Conditions
Recent loss of a spouse or partner: sadly, when someone has recently lost a loved one they become an easy target for scammers. In the days, weeks, or even months after a loss it can be hard to think clearly, and often people don’t want to deal with financial matters. Unfortunately, if the wrong person comes along to “help out” it can be disastrous.
Recent change in health: having a health emergency or hospital stay can sometimes make people who are retired panic about having enough money to live on. This can make a person more vulnerable to scams that promise big winnings, high investment returns, or “easy money.”
Lives with an adult family member or caregiver, and/or relies on another person to provide everyday care: unfortunately, many cases of exploitation occur because an elderly person relies on or feels they need to financially care for an adult family member or caregiver in their home. Any time this situation arises, it is important to keep a close eye on finances to ensure that money isn’t being stolen or that legal or financial documents haven’t been changed without the elder’s knowledge or actual consent.
Behavior
Openness to cold-calls and seminars: Many scams target elderly people because often older adults are more willing to sit on the phone and visit with a stranger, or are open to attending what are billed as “educational seminars” that provide a free meal, but are actually sales pitches. While not all such solicitations are fraudulent, the more willing an elder is to listen to pitches, the more likely he or she is to become entangled in a scam.
Not protective of personal information and/or interested in sweepstakes: Technology is rapidly changing, and it is hard to keep up. Because of this elderly people can become particularly vulnerable if they are willing to offer personal or financial information to those who call or email them. Additionally, many elderly people are more trusting, and will not be suspicious or skeptical if they receive mail offers to enter sweepstakes, or are told that they owe money.
No one thinks they are susceptible to financial crimes. Unfortunately, as we age the risk factors increase and we and our loved ones must be more and more vigilant. It is important that anyone, and especially those in their retirement years, have thoroughly researched financial and legal professionals that they can trust, and who can help them manage their finances in later years. To check a financial professional’s credentials, visit www.investor.gov as an important first step in protecting yourself from financial exploitation and abuse. For further questions, to file a complaint, or for assistance in researching a financial professional, contact the Colorado Division of Securities at (303) 894-2320, or the DORA Senior Hotline at (720) 5936720.
