Protecting Your Parents: The Rise of Financial Scams Targeting Seniors

Financial scams targeting seniors are schemes designed to trick older adults into giving away their money or personal information. These scams often involve a sense of urgency or fear, such as a fake IRS agent threatening arrest if immediate payment is not made.

Seniors may be more vulnerable to financial scams due to factors such as cognitive decline, social isolation, and trusting natures. They may also have more assets and be seen as easy targets by scammers.

Common financial scams targeting seniors include: phone scams, in which a caller poses as a government official or charity worker and asks for personal information or payment; email and internet scams, which involve phishing or fake websites designed to steal personal information; and investment scams, in which fraudsters offer “get rich quick” schemes or fake investment opportunities.

There are several steps you can take to protect your parents from financial scams. First, educate them about the common types of scams and how they work. Encourage them to never give out personal information or make payments over the phone or online unless they are sure of the legitimacy of the request. Consider setting up a joint bank account or power of attorney to help monitor their finances. Finally, stay involved in their lives and be aware of any changes in their behavior or financial situation that may indicate they have been targeted by scammers.

If you suspect your parents have fallen victim to a financial scam, act quickly. Contact their bank or credit card company to report any fraudulent activity and to freeze their accounts if necessary. File a report with local law enforcement and with the Federal Trade Commission’s Consumer Sentinel Network. Consider consulting with an attorney or financial advisor who specializes in elder law to determine the best course of action.