Financial scams are a big problem affecting many different kinds of people. These scams can involve illegally taking someone’s money, property, or possessions, often by tricking, forcing, or unfairly influencing them. This type of scam is particularly bad because it targets people who are more vulnerable, such as seniors, people with disabilities, or those experiencing cognitive decline. These individuals may not be able to spot or stop these predatory behaviors.
Financial scams have significant consequences, not only for the direct victims but also for their families, communities, and the broader economy. Victims can suffer substantial financial losses, leading to severe emotional distress, loss of independence, and a diminished quality of life. The long-term effects can include loss of savings, inability to pay for essential needs, and even homelessness.
Addressing financial exploitation requires a multi-faceted approach, customer education, proactive monitoring, and collaborative efforts among financial institutions, law enforcement, and social service agencies.
Your safety and financial well-being are important to us. Here are a few essential tips to help protect yourself and your loved ones from potential fraud and exploitation.
Common scams:
- Romance: Fraudsters create fake online profiles to form relationships, eventually asking for money for emergencies or business ventures.
- Impersonation: Scammers pretend to be someone from the government (IRS, Social Security, Medicare), a financial institution or tech support
- Lottery/Sweepstakes: Victims are told they’ve won a large prize but must pay a "fee" or "taxes" to collect it.
- Emergency/Person-in-need: Scammers pose as a grandchild, another relative, an attorney, an emergency medical provider, or a law enforcement official claiming a loved one needs money sent immediately to resolve an emergency.
Tips to protect your loved ones (and yourself):
- Plan ahead: Make a plan for when you or your loved one might have trouble thinking clearly, become ill, or need help managing money. Discuss this plan with trusted individuals, financial institutions, and/or legal counsel.
- Monitor accounts: Check account balances, transactions, and billing statements often to help quickly spot suspicious activity.
- Avoid caregiver or in-home help scams by:
- Securing financial documents and valuables
- Never let a caregiver use your or your loved one's credit/debit card to run errands or make purchases
- Never lend your or your loved one's caregiver or in-home help money or personal property
- Slow down and protect: Talk to your loved ones about slowing down and asking for assistance or verifying the source rather than rushing to respond to urgent requests.
- Communicate: Discuss plans and safety tips with your loved one so they know what they should and shouldn't do.
