OUTFOXING THE PREDATORS Protecting yourself from Fraud and Scams
Dec 20, 2014
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.
Exploitation and Cognitive Decline
Decreased ability to Grasp Concepts:
Impaired financial knowledge Newly widowed may result in suddenly being in charge of household finances
Exploitation and Cognitive Decline
Counting, SequencingDecreased ability to
manage finances- balancing check book, monitoring purchases
Diminished Performance Skills:
Exploitation and Cognitive Decline
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.
Financial Exploitation
• Theft• Coercion –Moving in and taking over• Borrowing with no intent to repay• Misuse of fiduciary powers• Undue influence
Financial Exploitation
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
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?