Dear Friend,

In recent years, older Americans have been increasingly targeted by scammers, resulting in the theft of billions in life savings. Below you will find an overview of how some of these schemes work, tips on how to combat them, and publicly available resources that may be helpful in the event you encounter one.

If you or someone you know has fallen victim to a scam, the Consumer Financial Protection Bureau recommends that you contact your police department, the State Attorney General’s office, and, if the victim was a senior, the local adult protective services agency. If you need assistance locating contact information for any of the offices listed above, please contact my office at (203) 333-6600 and a member of my staff will help you.

Elder Financial Scams:

Elder financial scams—broadly defined as the illegal or improper use of an older adult’s funds, property, or assets often through complex schemes or fraud—result in $28.3 billion in financial losses every year according to the AARP.

Common forms of elder financial scams fall into two categories: financial abuse and financial fraud. Financial abuse is committed by someone known to the victim, such as a caretaker, acquaintances, or family member; financial fraud is committed by a stranger who manages to contact their victim, most commonly online.

Examples of these scams include:

- Power of attorney abuse: an agent, legally empowered to make financial decisions on behalf of a retiree, improperly disburses funds, sells stocks, or transfers ownership of a title or deed to themselves for their own benefit.

- Professional malpractice: a retirement advisor, legal professional, or fiduciary provides their client bad advice for personal gain.

- Credit card fraud: an individual with access to an older adult’s personal information opens new credit accounts without the owner’s knowledge.

- New romances: after initiating a relationship online, a prospective romantic partner—often a persona portrayed by a scammer—convinces an older adult to send them money for a fabricated emergency, business venture, or similar reason.

- Technical support spoofs: a fake toll-free number makes a direct call claiming to be the individual’s bank or a government official, commonly from the IRS, and asks for his or her sensitive personal information, such as account, routing, or social security numbers.

- Phishing scams: after receiving an unsolicited email or text message from a “familiar company,” individuals are asked to verify their identity by providing personal information that is then used to open accounts or seek benefits in their name.

More examples of scams can be found here: Department of Justice -- Elder Justice Initiative.

Ways to Guard Against Elder Financial Scams:

- Learn about the various schemes and frauds that commonly target older Americans to better identify them in real time. Financial institutions will never ask for personal information or passwords directly.

- Stay in touch with your loved ones, checking in to inquire about any unsolicited or suspicious messages they may have received relating to their personal finances.

- Familiarize yourself with visitor and solicitor policies at your or your loved one’s assisted living facility to understand who may be allowed on the premises unannounced and why.

- Initiate a conversation with the older adults in your life to proactively discuss best practices as they relate to financial oversight, asset management, retirement planning, and other related topics.

- Remember that, in most cases, government agencies—including the IRS—will never contact you spontaneously. If you do receive a call, and suspect it is fraudulent, ask for a call-back number so you can hang up and redial to confirm you are speaking with an authorized government official.

Additional recommendations can be found on the following websites:

1. Consumer Financial Protection Bureau: Money Smart for Older Adults

2. Consumer Financial Protection Bureau: Guide for Family and Friends of People Living in Nursing Homes and Assisted Living Communities

3. Consumer Financial Protection Bureau: Managing Someone Else’s Money

4. Department of Justice -- Elder Justice Initiative: Financial Exploitation

5. Department of Justice -- Office of Victims of Crime

6.  Federal Trade Commission: How to Spot, Stop, and Report Government Imposter Scams

Government Resources:

Should you or someone you know encounter or suspect an instance of elder fraud, consider reaching out to the resources below for assistance:

National Elder Fraud Hotline: (833) 372-8311; Hours: Monday-Friday: 10AM-6PM EST; assistance in multiple languages available.

     To report a suspected instance of fraud over the phone.

Federal Trade Commission’s Report Fraud Webpage

     To report suspected fraud online.

FBI Internet Crime Complaint Center

     To report suspected fraud online.

Federal Trade Commission: Identify Theft

     For help recovering a stolen identity if sensitive information was compromised.

Department of Justice: Elder Justice Initiative

     For general information regarding federal efforts to combat elder fraud.

Eldercare Locator

     For help identifying resources, services, and benefits near you for an older adult.

I hope this information proves helpful to you and would encourage you to also sign up for my e-newsletter to receive additional updates about other publicly available government resources.

As a country, we are strongest when we care for one another. Thank you for your help in keeping older members of our community safe from those who would harm them.

Sincerely,

Jim