In Toronto this year, a jury convicted Toronto police constable—Robert Konashewych and his public service mistress, Adellene Balgobin, of fraud. The charge was the fabrication of a will to claim the $834,000 estate of a reclusive older man who died in 2017 after suffering from Alzheimer’s.
Preventing Elder Fraud is a growing concern as it targets one of the most vulnerable populations: older adults. As the population ages, understanding the types of elder fraud is crucial for prevention. Here are the key styles to be aware of:
1. Identity Theft
Identify Theft is where a fraudster uses the elder’s personal information to open credit cards, take out loans, or make unauthorized transactions. It’s often conducted via phone or online scams, asking for sensitive details.
2. Telemarketing/Phone Scams
These scams involve fraudsters posing as legitimate organizations such as government agencies, charities, or healthcare providers. They can trick older adults into providing credit card information or sending money for fake services, prizes, or emergencies.
3. Internet Fraud
Internet Fraud includes phishing emails that trick seniors into revealing sensitive information and ransomware attacks that lock their computers until they pay a ransom. There are also counterfeit prescription drug scams and fake anti-aging products sold online.
4. Investment Schemes
Fraudsters may present seniors with “exclusive” investment opportunities, promising high returns with low risks. These can include pyramid schemes, unregistered securities, or even promises of oil or gas investments.
5. Reverse Mortgage Scams
Scammers offer a free home, an investment opportunity, or foreclosure/refinancing assistance, but they’re trying to trick seniors into signing over their homes via a reverse mortgage.
6. Lottery or Sweepstakes Scams
Seniors receive a call or email claiming they’ve won a prize but need to make a payment to unlock the winnings. Of course, there’s no prize, and the scammer pockets the fee.
7. Grandparent Scam
In this scam, the fraudster calls an older person, pretends to be a grandchild in trouble, and asks for money to be wired or sent via gift cards.
8. Health Insurance Scams
Scammers pose as health care representatives to get seniors to give their personal information, Then, they use the personal information to bill Medicare and pocket the money.
9. The “Helping Hand” Scams
Sadly, this kind of fraud often involves someone the elder trusts—like a family member, caregiver, or friend—who uses this trust to access the elder’s finances.
10. Romance Scams
Scammers establish a romantic relationship with a lonely senior, typically online, then ask for money for emergencies, travel, a business venture, or medical expenses.
Prevention involves:
- Educating seniors about these scams.
- Encouraging them not to share personal information.
- Advising them to consult with a trusted individual before making significant financial decisions.
Regular monitoring of financial accounts and credit reports also helps in early detection. Always remember: If it sounds too good to be true, it probably is.
Techie Nesters recommends credit tracking apps noting that elderly individuals often become targets for financial fraud and identity theft. According to Techie Nesters, a credit tracking app can alert users to changes in their credit reports, such as new accounts or inquiries, that might indicate fraudulent activity. This early detection allows for quick action, potentially preventing substantial financial loss.
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