Warning Signs of Elder Financial Abuse
Posted
on Friday, June 23, 2023
in
Articles
Elder financial exploitation is a rapidly growing crime. Fraudsters use many tactics to take advantage of retiring and aging adults. Caregivers can be the first line of defense against elder abuse.
Elder Financial Abuse Stats
- Victims lost at least an estimated $2.9 billion in 2022
- Average loss is over $35,000 per case
- Losses grew 84% from 2021 to 2022
Common Types of Elder Financial Scams
Tech Support Scams - scammer pose as tech repair agents to access victims' computers and finances
Investment Scams - Perpetrators induce investors to make purchases based on false information and promises of large returns with minimal risk
Romance Scams — Criminals seek money from victims on dating apps and social media
Government or Family Imposter Scams — Fraudsters impersonate government officials or family members to demand money
Lottery Scams — Criminals claim victims must pay taxes or fees to access winnings from a lottery or raffle
Warning Signs of Elder Financial Abuse
The key to spotting financial abuse is a change in a person’s established financial patterns. Watch out for these “red flags”:
- Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals.
- ATM withdrawals by an older person who has never used a debit or ATM card.
- Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
- Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
- New “best friends” accompanying an older person to the bank.
- Sudden non-sufficient fund activity or unpaid bills.
- Closing CDs or accounts without regard to penalties.
- Uncharacteristic attempts to wire large sums of money.
- Suspicious signatures on checks, or outright forgery.
- Confusion, fear or lack of awareness on the part of an older customer.
- Refusal to make eye contact, shame or reluctance to talk about the problem.
- Checks written as “loans” or “gifts.”
- Bank statements that no longer go to the customer’s home.
- New powers of attorney the older person does not understand.
- A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation.
- Altered wills and trusts.
- Loss of property.
Contact Us
Our team receives ongoing training to stay updated on the latest fraud trends. Contact the bank if you or someone you know has been involved in financial fraud or think your loved one may be victim of financial abuse. Call 641-782-1000 or visit any of our locations for help.
Source: American Bankers Association https://www.aba.com/advocacy/community-programs/consumer-resources/protect-your-money/elderly-financial-abuse