Aging and Financial Vulnerability
by Rebecca Eyman
It is estimated that seniors lose $36 billion a year from financial fraud. Those who have been scammed know that the results can be devastating and getting the money back nearly impossible
Unfortunately, seniors are more likely to be targeted by scammers than younger age groups. This is in part because seniors have retirement and savings set aside that can be targeted. A 2016 study indicated that people over 50 years of age own 83% of the wealth in America. Seniors can also suffer from cognitive decline or social isolation, making them vulnerable to financial abuse. However, new research has suggested that as we age, changes in our brains make us less likely to be able to recognize a scam.
Doctors and scientists have focused their research on older people who are otherwise on the ball—no memory loss, no confusion, and no cognitive impairment—yet they still appear to be at a higher risk of being abused financially by a stranger or family member. It appears that as we get older, our brains start to have more trouble recognizing when someone is trying to mislead or cheat us.
Until scientists find a way to combat this change in the aging brain, awareness of the most common types of scams is a good way to protect yourself.
Some common signs of a scam include:
Fake phone call from jail: Some scammers call older people and try to trick them into believing their grandchild has been arrested and needs bail money immediately. Receiving such a call would be extremely stressful and it’s tempting to react quickly, but it’s critical to verify this information first before sending money by calling another family member or the jail directly to confirm the situation.
Computer speed: Be extremely skeptical of an unsolicited promise to make your computer run faster. Never, under any circumstances, should you allow remote access to your computer to a stranger. The result is often the installation of spyware, malware, or ransomware, which can be very difficult to remedy.
IRS/outstanding warrant: Frequently, scammers claim to be from a government agency, including the IRS, Social Security Agency, or a law enforcement agency. The goal is to frighten you by making you believe that you owe back taxes or that there is a warrant for your arrest. Remember, these agencies will never contact you by telephone. Important notices will arrive via US Postal Service mail.
Gift cards: It’s very common for scammers to request payment in the form of gift cards. If any individual claiming to be from the IRS, a business, or a law enforcement agency requests that you provide gift cards, be immediately wary.
Pop-up messages: Pop-up messages on your internet browser can look very official. Sometimes, a pop-up can tell you that a computer virus has been detected, or that you’ve won a prize. Pop-ups can even use logos from real companies to look more legitimate. Be wary of pop-ups, and install a pop-up blocker on your browser to avoid these scams.
Prizes and sweepstakes: Remember: if it seems too good to be true, it probably is. Be cautious of winning prizes or sweepstakes out of the blue. Many times, scammers will attempt to get you to pay for “fees” up front to receive your phony prize.
When it comes to unsolicited phone calls or online offers, it’s good to use the “smell test:” if it stinks, there’s likely something fishy going on. If you’re not sure whether the contact you have received is a scam, consider reaching out to a family member or law enforcement to be absolutely sure. The Federal Trade Commission and the Consumer Financial Protection Bureau also have helpful resources on recognizing scams and what to do if you’re the victim of a scam.
