By MD Mercury, gerontologist
Financial exploitation of older adults is a complex and challenging issue with various difficulties in detection and prevention. There are many forms of financial C, scams and unscrupulous sales practices that target seniors. Despite the importance of financial literacy, the research on older adults has been overlooked, and the data does not represent the pervasiveness of senior fraud since it is often unreported. Diminishing cognitive capacities can critically affect aging adults, which can result in financial exploitation.
The increase of the aging population will continue to change financial circumstances for older adults, and provide opportunities that will challenge fiduciary professionals. Financial fraud prevention programs and resources that educate seniors will be crucial to ensure security later in life.
Exploitation - Current examples of top financial frauds and scams, each of these are different yet impact the financial security of an older adult.
Affinity Fraud - Developing friendships and the trust of a large group of people who share common interests in order to solicit fraudulent investments.
Telemarketing scams – unsolicited phone calls for jury duty, automated systems charging services or products without authorization, phone service switching without permission.
Utilities & Contractor scams – individuals posing as utility workers engage an older adult while the scammers enter the home to steal property and valuables,contractors that are not licensed who promise work they cannot complete.
Mail fraud - offering products, services or investments, including phony sweepstakes and lotteries.
Medicare fraud - calling seniors to verify Medicare numbers to be used to make false medical charges on their Medicare accounts.
Sweetheart scams - seniors looking for a relationship, involvement with a younger individual pretending to be romantically interested and needing to borrow money.
Family & Grandparents scams - perpetrators typically can be family, friends or caregivers placing calls late at night to borrow money for fraudulent emergencies.
