Protecting Seniors from Fraudsters by Brian Walker, Chief Compliance Officer

“How criminals are exploiting personal information to target vulnerable seniors in elder fraud.” In 2023, people over 60 lost a whopping $3.4 billion to scams, a 10.6% increase from 2022, according to the FBI’s IC3 reports.[i]

Unfortunately, headlines similar to the one above are all too common nowadays. Anyone can be a target of professional fraudsters but seniors are more vulnerable than any other group.

According to a recent article from the National Council on Aging[ii] the latest scams targeting seniors are:

• Imposter Scams
• Tech Support Scams
• Online Shopping Scams
• Fake Check Scams

We at Signature Wealth Management Group are committed to educating and empowering our senior and vulnerable clients. Here are some valuable strategies to help safeguard your financial well-being:

Stay Informed About Financial Scams

Knowledge is your first line of defense. Stay informed about the latest scams and be cautious of unsolicited offers and always verify the legitimacy of any investment opportunity before committing funds. AARP[iii] is also a good source to educate yourself on the most common scams.

Choose Trusted Financial Advisors

When seeking financial advice, work with reputable and licensed financial advisors or institutions. Verify credentials and check for any disciplinary history. Trusted advisors will prioritize your best interests and help you navigate complex financial decisions.

Monitor Your Accounts Regularly

Regularly review your bank statements, investment accounts, and credit reports for any unauthorized transactions or suspicious activity. Report any discrepancies to your financial institution promptly. Setting up alerts for account activities can provide early detection of potential issues.

Protect Your Personal Information

Safeguard your personal information at all costs. Shred documents containing sensitive details before disposal. Be cautious about sharing personal information online, over the phone, or through email. Legitimate organizations will never ask for sensitive information unsolicited.

Establish a Power of Attorney

Consider establishing a durable power of attorney (POA) to designate a trusted individual to manage your finances in case you become incapacitated. Ensure this person understands your financial goals and preferences.

Plan for Long-Term Financial Security

Create a comprehensive estate plan that includes a will, healthcare directives, and considerations for long-term care. Review and update your estate plan regularly to reflect changes in your financial situation or personal circumstances.

Stay Educated and Connected

Stay connected with family members and trusted advisors who can provide support and guidance. Signature Wealth Management encourages everyone to set up a trusted contact profile with your financial institutions. A trusted contact is an individual authorized by an investor to be contacted by their financial firm in limited circumstances. These circumstances would include concerns about activity in the investor’s account or if the firm has been unable to reach the investor after numerous attempts. A trusted contact may be a family member, attorney, accountant or another reliable third party.

If you suspect that you or someone else is being exploited

You or a trusted person should contact Adult Protective Services. You can find information about your local Adult Protective Services office at the Eldercare Locator on eldercare.gov, a public service provided by the U.S. Administration for Community Living, or by calling 800-677-1116.

 We appreciate the confidence you have placed in our firm. The Signature Wealth team is here to assist you, please reach out to us if you have any questions.

 

Some of the preceding text was generated by ChatGPT, July 25, 2024, OpenAI, https://chat.openai.com. Edited for style and content by Signature Wealth Management Group

This information is for general educational purposes.

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Sources:

[i] https://www.foxnews.com/tech/how-criminals-exploiting-personal-information-target-vulnerable-seniors-elder-fraud

[ii] https://www.ncoa.org/article/what-are-the-top-online-scams-targeting-older-adults

[iii] https://www.aarp.org/money/scams-fraud/info-2023/top-scammer-list.html?intcmp=AE-FRDSC-MOR-R2-POS3