Senior Internet Fraud
Recent studies show that loneliness and isolation are serious health risks for seniors, and that they are at a risk of dying much earlier than those who socialize regularly.
Unfortunately, we have seen that loneliness also puts seniors at a greater risk for fraud and exploitation. It’s also been our experience that as people age, their cognitive abilities start to decline. They also become more trusting and more susceptible to those who would prey on them. It’s almost a form of dementia, not necessarily in the medical sense, but in the legal sense where they are no longer able to rationally handle their financial affairs. Sometimes the only way to protect them is through a guardianship.
Consumer Reports ran a feature article in its November 2015 issue entitled, “Lies, Secrets, and Scams: How to Prevent Them.” The article should be required reading for seniors, their families and anyone who cares for seniors. The cost of fraud against seniors is in the billions nationally, and on a personal level the costs to victims and their families can mean the loss not only of their retirement savings and their homes, but also their sense of self-worth and their dignity.
We see that Internet scammers prey especially on the emotions of the most vulnerable. Often they lurk around dating sites such as Match.com and E-Harmony. They charm the susceptible, lonely ones with texts and emails. These greedy Lotharios promise love and companionship, and after establishing a feeling of trust, start scheming for money. They have great stories, too. They need money to finish putting together a business deal, and they promise to share once they make a fortune. They have needy family members. They have prize money to share but need a bankroll first. And, “I love you so much and I hate to ask this, but I really need a loan just for a short while.”
This is Financial Exploitation of a Vulnerable Adult. It’s a felony and can mean jail time for the perpetrators. Unfortunately, by the time they’re caught, if at all, it’s too late. The damage has been done. This is why family and loved ones need to be on the alert.
How can you help keep your loved ones safe from Internet scammers? Unfortunately, this can be difficult. This is a situation where a Power of Attorney can be critical. A Power of Attorney allows someone to monitor expenditures from a senior’s account and raise an alarm if the senior begins to withdraw large sums of money for no apparent reason. Introduce yourself to mom or dad’s bank staff (take your parent with you when you do). In this instance, knowledge really is power.
Finally, many times the scammers take cash, and there may be limited ways to get money back. But we’ve been able to reverse the sale of a home when the money from the sale was supposed to go to the scammer. We succeeded because family members found out about the sale days after the closing and there was still time to act.
