Scam of the day – April 18, 2017 – New study about seniors and susceptibility to scams

A recently released  preliminary study by researchers at Cornell University published in the Journals of Gerontology concluded that naturally occurring changes in the brains of older people makes them vulnerable to financial exploitation.  The changes noted were in a part of the brain that alert us when facing a risky situation as well as another part of the brain that controls the ability to read social cues.  This deterioration of the brain can and is exploited by scammers to swindle older people.

A previous study by the University of Iowa also found changes in another part of the brain during aging that controls belief and doubt that would make older people less skeptical and therefore more likely to be a scam victim.

According to a study by the MetLife Mature Market Institute the cost of financial exploitation of the elderly is approximately 3 billion dollars annually.

TIPS

If you have an elderly family member who may be undergoing a decline in mental acuity, it is important to take specific steps to help prevent them from becoming a victim of financial exploitation.  First, it is important to recognize that many elderly victims of financial exploitation are victimized by their own family members or caregivers.  Keeping personal financial information and account information safe and secure is an important first step to take.  It is also important to regularly monitor the accounts of seniors.  Limits on access to funds such as through debit cards that can be customized to monitor spending, block certain types of transactions and set spending limits can be useful to some people.

Scam of the day – March 22, 2015 – Obituary scams

Scammers have no sympathy for anyone as evidenced by the many scams that are based on obituaries.  For years, scammers would scan the obituaries and then go to Social Security’s Death Master File where the names of deceased Americans are available along with their Social Security numbers and then use this information to the deceased a victim of identity theft by obtaining credit, filing phony income tax returns or other tactics.  Easy access by scammers to the Death Master File has been largely closed by legislation that took a long time to be made effective.

Scammers also will look for information in obituaries about the names of family members and then use that information for purposes of the infamous Grandparent Scam where the grandparent gets a telephone call late at night from a scammer posing as the grandchild who under the guise of some emergency tricks the grandparent into sending money to the scammer.

Scammers also call the families of people they see in the obituaries and claim they are creditors of the deceased person and that the family must pay a debt owed by the deceased.

Finally, scammers will also deliver packages by messengers on a COD basis claiming that the package was something ordered by the deceased person.  It is only after the family member has paid the Cash On Delivery charges and opened the package that the family finds that the package is just filled with old newspapers or magazines merely used as weight for the package.

TIPS

Scammers prey on people at their most vulnerable so it is at times like the death of a family member that you must be your most vigilant.  When writing an obituary, don’t put in specific information such as names that can be used by a scammer.  Also, contact the three major credit reporting bureaus, Equifax, TransUnion and Experian to seal the credit report of the deceased in order to avoid the risk of identity theft.  If someone contacts you claiming a debt was owed by the deceased, demand written confirmation for you to review before paying any alleged debts.  Don’t be pressured to act quickly by a purported debt collector.  Finally, if a COD package comes, refuse to pay until you can confirm that the delivery is legitimate.