“Each year, senior citizens lose billions of dollars to financial fraud, with the loss to individual victims averaging tens of thousands of dollars.”
The extended isolation and loneliness during the coronavirus pandemic is creating the perfect storm for financial exploitation of seniors, who are unable to visit with family members and friends, reports Fredericksburg Today in the article “SCC urges awareness of investment fraud among seniors due to increased pandemic isolation“. The unprecedented need to forgo socializing makes seniors who are already at risk, even more vulnerable.
In the past, scammers would deliberately strike during a health crisis or after the death of a loved one. By gathering data from obituaries and social media, even establishing relationships with support and social groups, scammers can work their way into seniors’ lives.
Social distancing and the isolation necessary to protect against the spread of the coronavirus has left many seniors vulnerable to people posing as their new friends. The perpetrators may not just be strangers: family members are often the ones who exploit the elderly. The pandemic has also led to changes in procedures in care facilities, which can lead to increased confusion and dependence for the elderly, who do not always do well with changes.
Here are a few key markers for senior financial abuse:
- A new friend or caregiver who is overly protective and has gotten the person to surrender control of various aspects of their life, including but not limited to finances.
- Fear or a sudden change in how they feel towards family members and/or friends.
- A reluctance to discuss financial matters, especially if they say the new friend told them not to talk about their money with others.
- Sudden changes in spending habits, or unexplained changes to wills, new trustees, or changes to beneficiary designations.
- Large checks made out to cash, or the disappearance of assets.
- Signatures on checks or estate planning documents that appear different than past signatures.
Not being able to visit in person makes it harder for family members to discern what is happening. However, there are a few steps that can be taken by concerned family members. Stay in touch with the family member, by phone, video calls, texts or any means possible. Remind loved ones that scammers are always looking for an opportunity and may try to exploit them during the pandemic.
Every community has resources that can help if elder financial abuse is a concern. An elder law and estate planning attorney will be able to direct concerned family members or friends to local resources to protect their loved ones.
Reference: Fredericksburg Today (June 20, 2020) “SCC urges awareness of investment fraud among seniors due to increased pandemic isolation“
