MONEY AND CREDIT RESOURCES
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How To Protect Seniors from Fraud,
Money Scams and Financial Exploitation
Posted By NAOSA.org
Written by Anthony Cinotti, Founder, NAOSA
Older adults often cannot earn back the money or property they’ve lost to scams, fraud, and exploitation.
Financial fraud is therefore devastating to seniors, and the practice has now become the fastest growing form of elder abuse.
“Older adults have a twenty percent chance of becoming a financial fraud victim shortly after reaching their sixties.”
What is Financial Elder Abuse?
Financial elder abuse takes place when thieves coerce, bully or deceive seniors into surrendering their money or property. Money scams targeting seniors will continue to rise into the next decade, and folks certainly don’t have to be “elderly” or “frail” to fall victim to fraud—age doesn’t matter to money scammers.
That being said, studies show that seniors simply trust people more, which probably is why many thieves and unethical professionals frequently target older adults more than any other age group.
Why Are Seniors More Susceptible to Money Scams?
Older adults acquire an abundance of financial assets before retiring; so, if you were a crook wouldn’t it make more sense to swindle seniors instead of defrauding young adults or millennials with limited wealth?
Targeting the older adults means bigger paydays for thieves—combine this with the ordinary cognitive and physical aging that arise as retirees get older and you’ll have a sense of why criminals often go after the money assets of seniors.
We mentioned that older adults trust people more easily than younger adults do. Dr. Shelley Taylor’s research at UCLA confirmed this thought in 2012 after finding senior test subjects were challenged at recognizing the faces of untrustworthy people, whereas adults under forty identified them faster.
Dr. Shelly and her colleagues further examined functional brain activity among the young and the elderly via MRI scans and found important dissimilarities.
According to the UCLA study, younger people experienced “gut feeling” brain reactions when exposed to untrustworthy faces. The older adult subjects on the other hand displayed “little to no activation” in the same brain area.
Scientists were baffled as to why this happens; but, one can conclude from Dr. Shelly’s research that older adults are more trusting and therefore more susceptible to senior financial fraud
How Can Older Adults Protect Themselves?
The NAOSA and its senior financial fraud prevention experts want to help older adults recognize a good scam when they see one.
Our advocates have studied popular elder abuse money scams and senior financial exploitation practices, and they know what lurks among the scamming phone calls, email frauds, and ever-popular snail mail cons that target older adults.
Let’s look at some tasks that seniors can do right now to protect themselves from financial fraud:
“Senior financial fraud scammers often aim for older adults who live in social isolation.”
Remember—individuals requesting money for investing in the wellbeing of older adults will never have a problem with seniors verifying the legitimacy of their requests.
Allow monitoring of transactions at financial institutions. Let trusted family members observe and track bank account activities, IRA withdrawals and other financial transactions. Ask financial institutions to forward statements and transaction alerts to these individuals, who should only hold account access to fraud monitoring (no direct access to deposits of withdrawals).
“Over 80% of senior financial exploitation incidents involve family members.”
“One time deals or buy now offers that are good today should likewise still be good tomorrow.”
To obtain more ideas on senior money fraud protection and other essential consumer information, please click here to subscribe to our free consumer newsletter
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