Protecting Your Loved One From Financial Fraud
If your loved one is elderly, be aware that fraud and theft against the elderly are surprisingly common—and sometimes committed by people they know and trust. Here are a few warning signs to look for: Be suspicious if you notice a paid caregiver, such as a nurse or aide, becoming extremely interested in your loved one's financial affairs or reluctant to spend money on necessary medical treatment. Make sure your loved one is not being prevented from talking on the phone or returning calls. Watch for unauthorized withdrawals from checking or savings accounts and new or recently changed legal documents, especially the durable power of attorney for financial decisions.
Protect your loved one against fraud by strangers posing as legitimate business people, government officials, or other generally trusted individuals. Some of the most common "cons" used to trick elderly people into giving up money, property, or personal information include:
- Prize and sweepstake frauds – You've won a prize but have to send money to get it.
- Fraudulent investments – Usually with "guaranteed" and extraordinarily high rates of return.
- Charitable donation scams – They sound legitimate, but are not.
- Home or auto repair scams – Work is poor or isn't finished.
- Loan or mortgage fraud – High-cost loans that can result in foreclosure.
- I-Need-Your-Help scams – Someone claiming to be a bank examiner or police officer asks for cash or account information to help expose fraud.
Take these actions to protect your loved one against financial fraud:
- Recognize the classic warning signs of fraud—unsolicited offers that sound too good to be true; requests to send money before a product or service is delivered; pressure to say "yes" quickly to a proposal.
- Try to deal only with businesses and organizations you know or that have been recommended.
- Get key details of offers in writing and check them out before agreeing to anything.
- Closely monitor credit card bills and bank statements. With your loved one’s permission, you can check bank and credit card statements online. Talk to your family member or friend about this if you are worried about fraud.
Immediately report a fraud or theft. If you suspect your family member or friend’s name or credit cards are being used improperly, contact the fraud department of one of the three major credit bureaus. That company will notify the other two.
Equifax – 800/525-6285
Experian –888/397-3742
TransUnion – 800/680-7289
If you suspect problems in a bank or investment account, call the financial institution.
Source: FDIC Consumer News
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