Investment

Navigating the Conversation about Scams with Older Relatives

Published November 11, 2023

In New York, a concerning scenario surfaced this summer when Daniel Goldstein’s 86-year-old mother received an email that appeared to emanate from her bank. The email distressed her as it referenced money expenditures that she did not recognize. In a bid to resolve the issue, she promptly called the provided help number. However, instead of assistance, the person on the line solicited her bank account details and subsequently, she was defrauded out of $600.

Last year, individuals across various age groups lost a staggering $8.8 billion to scams, with seniors suffering the most severe financial impacts, based on data from the Federal Trade Commission (FTC).

The challenge lies not solely in protecting the elderly from scammers, but also in effectively communicating the risks and preventative measures against these fraudulent activities.

Understanding Scams Targeting the Elderly

Knowledge of scams that commonly exploit the elderly is crucial. Among these, the 'grandparent' scam and romance scams are prevalent, as reported by AARP’s fraud prevention director, Kathy Stokes. To evade the former, the FTC suggests verifying the caller’s claim through other family members first. Romance scams, amounting to losses of over $1.3 billion last year, often begin on social media and proceed to private messaging platforms where scammers manipulate victims into sending money abroad under pretenses of a romantic connection and fabricated crises.

Furthermore, seniors are often targets for investment SCAMS, tech support scams, and impersonation schemes. The FTC’s website delineates these and other scam types in more detail.

Maintaining Ongoing Dialogues about Scams

According to experts, such as Genevieve Waterman from the National Council on Aging, one effective strategy in shielding older family members is to integrate the discussion of scams into regular family conversations-making it a collective affair.

Goldstein, whose mother fell victim to a scam, believes that discussing such occurrences beforehand could have potentially averted the financial loss his mother suffered. Scammers typically instill a false sense of urgency in their narratives, exploiting this pressure to entice victims into a scam that might seem implausible under normal circumstances.

Adopting an Informative Tone Over an Authoritative One

The approach towards these conversations should be informative rather than authoritative. By including all family members and emphasizing the universality of scam targets, the dialogue becomes a collaborative effort in vigilance against sophisticated scam tactics.

Empathy towards family members who have already succumbed to scams is also paramount. Recognizing the crime's seriousness and the sophistication of the scamming organizations can help in responding compassionately to victims.

Joint Efforts to Counter Scams

Goldstein’s testimony highlights the importance of pre-arranged communication strategies in dealing with potential scams. The distress and embarrassment felt by victims underscore the fact that the adoption of digital platforms, especially among the elderly, warrants better preparation and literacy.

To this end, resources such as the AARP’s Fraud Watch Network Helpline provide essential guidance and support for those facing or recovering from scams.

Reporting Scams Effectively

It is imperative to report scams to aid in their curtailment. Victims can lodge reports with the FTC to contribute to broader preventive efforts.

fraud, conversation, elderly