Protecting Our Seniors: Understanding and Preventing Elder Financial Abuse

Elder financial abuse is a growing concern that affects many seniors worldwide. The Financial Crimes Enforcement Network (FinCEN) recently released a report of elder financial exploitation that showed over 155,000 suspicious activity reports filed related to elder abuse in the last year. These reports alone showed $27 billion in suspicious activity!

It’s crucial to understand what it is, how it happens, and what steps can be taken to prevent it. At Peoples Bank, we are committed to educating our community and protecting our customers from financial exploitation. 

What is Elder Financial Abuse?

Elder financial abuse involves the illegal or improper use of an elderly person’s funds, property, or assets. This can occur through deceit, coercion, or manipulation and often comes from trusted individuals such as family members, caregivers, or financial advisors.

How Does Elder Financial Abuse Occur?

Elder financial abuse can take many forms, each with unique tactics and methods. Understanding these can help in identifying and preventing potential abuse. Here are some common ways elder financial abuse occurs:

Scams and Frauds

1. Lottery or Sweepstakes Scams:
• How it Works: Seniors receive a call or letter informing them they have won a significant prize, such as a lottery or sweepstakes. To claim the prize, they are instructed to pay fees or taxes upfront.
• Red Flags: Any request for payment before receiving a prize is a major warning sign. Legitimate lotteries and sweepstakes do not require winners to pay fees to claim their prizes.
2. Telemarketing Scams:
• How it Works: Fraudsters call seniors, pretending to be from reputable companies, charities, or even government agencies. They solicit donations, claim there is a problem with their bank account, or offer services and products that do not exist.
• Red Flags: High-pressure tactics, demands for immediate payment, or requests for personal financial information over the phone are typical signs of telemarketing scams.
3. Phishing Scams:
• How it Works: Seniors receive fraudulent emails, texts, or phone calls that appear to be from legitimate institutions such as banks or government agencies. These messages often include links to fake websites designed to steal personal information or infect computers with malware.
• Red Flags: Suspicious emails or calls asking for personal information, urgent language, unfamiliar links, and poor spelling or grammar can indicate a phishing attempt.

Unauthorized Transactions

1. Unauthorized Withdrawals:
   • How it Works: Someone can gain access to an elder’s bank account or ATM card and make unauthorized withdrawals by stealing the card or obtaining the elder's PIN.
   • Red Flags: Unexpected withdrawals, missing checks, or a sudden depletion of funds are indicators of unauthorized withdrawals.
2. Credit Card Fraud:
   • How it Works: Fraudsters use the elder’s credit card information to make unauthorized purchases. This can happen if the card is stolen or if the elder is tricked into revealing their card details.
   • Red Flags: Unrecognized charges on credit card statements and frequent calls from debt collectors about unfamiliar purchases are signs of credit card fraud.