Awareness cuts risk for elderly financial abuse

METRO DETROIT — It’s a warm spring day in Sterling Heights and an 84-year-old woman is sitting at home when the phone rings. “Your grandson is in big trouble,” the caller says. “He needs money now!”

Meanwhile, in Rochester Hills, a 78-year-old man is on his laptop computer chatting with a lady he’s never met, but with whom he’s struck up a romantic online relationship. She wants to come from out of state for a visit but can’t afford the plane ticket. “Can you help?” she begs.

These scenarios are fictitious, but the fact is senior citizens are known to face such fraudulent requests, and lost cash is often the outcome.

Preventing con artists from deceiving those in their golden years requires evolving knowledge and vigilance on the part of both individuals who are potential targets and their families, who must play a significant role in safeguarding their aging loved ones.

“It’s important for the children of the elderly to just be mindful,” says Melissa Boulier, risk mitigation manager for Cornerstone Community Financial Credit Union.

Keeping an eye on how and where a senior is spending their money is a key protective measure and children can’t automatically assume that outsiders have their parents’ best interests in mind.

“We see a lot of times where paid caregivers or neighbors and friends are taking elderly (individuals) out to doctor’s appointments or to get groceries. But then it kind of turns into this friendship where now they’ve convinced them to give them some money,” Boulier says. “So, as a child, you really want to be able to have a pulse on what’s going on financially.”

She suggests having alerts set up on a parent’s spending account to help monitor large or suspicious transactions and coordinating with financial institutions in order to reduce the likelihood of fraud.

“We encourage notes on accounts,” Boulier says. That way, seniors can still access their money, but unusual activity would prompt an institution to reach out and advise the family. “It will trigger the financial institution to call the daughter who’s on the account and say, ‘Hey, your mom’s here and she’s asking for this.’”

It’s also prudent to restrict the amount of money available to a vulnerable individual.

“I would say keep an eye on and maybe limit cash availability,” Boulier says. “Is there really any reason that somebody needs to have access to $100,000 in their checking account?”

 

‘Protect your information’
Although fraud can take many forms and new schemes always seem to be around the corner, there are some practical ways seniors can avoid falling victim. Perhaps the best advice is sharing as little personal information as possible.

“Protect your information at all costs,” says Macomb County Prosecutor Peter Lucido. “Don’t share it. Always take a step back. (Ask)

why do you need that information?”

Lucido, who is in the midst of his second term as the county’s top law enforcement official, has put an extra emphasis on protecting seniors from fraud, making more than 250 presentations to older adults during his tenure and publishing a booklet of information aimed at keeping elderly individuals safe from financial harm.

Stopping Crimes Against Macomb Seniors, or SCAMS, is Lucido’s program to protect retirees from being unduly parted from their money.

“Educate as much as you can. Give them the tools that they need,’ Lucido said. “The rest is in their hands.”

Lucido’s SCAMS book and presentations explain different types of fraudulent schemes older folks may encounter, along with warning signs and preventative measures.

For example, if an unsolicited contractor knocks on the door and promises bargain home repair or improvement work — beware. Strangers should be asked to show their state-issued business license and provide written contracts specifying costs and a completion date, among other things. Avoid anyone using high-pressure pitches or scare tactics.

Lucido also covers areas such as telemarketer fraud, caregiver fraud and identity theft.

“I’m giving them an arsenal of information, as well as an arsenal of tools, to use to defend themselves against the scammers,” he says.

In general, he says seniors should shun phone calls from unrecognized numbers, be skeptical of anyone — even loved ones — asking for money and keep their Medicare number private.

Lucido’s SCAMS booklet is available online at the prosecutor’s office page at macomb.gov as well as many municipal buildings and businesses. His upcoming public presentations include June 17 at 10:30 a.m. at the Sterling Heights Senior Center; June 18 at 2 p.m. at the St. Clair Shores Senior Center and June 23 at 2 p.m. at the Eastpointe Memorial Library.

 

Raising awareness
With June designated as Elder Abuse Awareness Month, Michigan Attorney General Dana Nessel is referring seniors and their families to the state’s latest Elder Abuse Task Force newsletter, which provides resources on how to spot elder abuse and scams.

“Elder Abuse Awareness Month allows us to shed light on an often unnoticed and unreported issue,” Nessel said in a prepared statement. “To properly protect our seniors, we must be able to recognize the warning signs. Our Elder Abuse Task Force has a number of resources available, including this newsletter, to help identify neglect and financial exploitation, while providing the tools needed to raise awareness and stop abuse before it starts.”

Nessel said more than 100,000 older adults are victims of elder abuse, which includes physical abuse and neglect in addition to financial exploitation.

Experts say older adults are at particular risk of losing money because they often lack sufficient skill and understanding of technology like computers as well as decreasing mental sharpness.

According to information on the Cornerstone Community Financial website, “Older adults experiencing cognitive decline may not understand the implications of financial transactions they authorize, may be unable to recall giving money or permission, and may lack the capacity to report abuse or advocate for themselves.”

Boulier, the Cornerstone risk mitigation manager, said loved ones should be talking with vulnerable adults about the dangers they face in order to get ahead of potential pitfalls.

“It’s really about family involvement,” she said, “to make sure that there’s open discussions and plans for elderly parents and their finances. It’s really an uncomfortable topic to discuss but being able to have that conversation and have a plan in place is really important.”

Monitoring how seniors are engaging on social media is another smart way to protect them from financial danger.

“Has your family member reclused?” Boulier said about recognizing warning signs. “Is there more (social media) activity that’s happening?

Do they seem more glued to their phone? Do they seem more glued to their PC? … Being mindful of what type of scams that are out there and educating the elderly on those.”

If a senior does become a victim, Boulier says it’s important to alert law enforcement. Experts say financial fraud incidents are often overlooked because victims are embarrassed after they have been scammed.

“It is your obligation to report it and get the authorities involved so that they can do their investigation,” Boulier says. “It’s important to know that there are expert agencies that will take these cases very seriously and do the investigation.”

Report incidents to Michigan Adult Protective Services at (855) 444-3911 and the national Federal Trade Commission elder fraud hotline at (833) 372-8311.