Step One – Get a captive audience
Professional financial predators must first get a captive audience of willing seniors together. Watch out for the “Free Lunch” or “Free Seminar” where you are promised free and important information on “Living Trusts” or “Reverse Mortgages.”
Step Two – Find Out What the Senior Owns
The next step is to find out what the senior owns in terms of property, savings, annuities, equity in home and other assets. This is accomplished by handing out questionnaires at the “Free Lunch” or “Free Seminar” that will be used to determine which attendees will later be targeted for financial exploitation at a sales presentation.
Step Three – Create a Need to Move the Assets
The financial predator needs to create a need for the senior to move his or her assets or buy and expensive insurance product, like an annuity that pays the predator a huge commission. This is usually accomplished by creating fear and insecurity about one’s life savings. The scammer will tell you he will “protect your estate” and “secure it for your children,” You might be told that “you will go into a nursing home and outlive your money,” or need to “avoid probate,” or “qualify for Medi Cal,” or a host of other doom and gloom scenarios to create enough fear and concern to induce you to comply with the predator’s wishes.
Step Four – Liquidate the Senior’s Assets and Move them to Commission-based Products
The final step is to close the deal by having the senior move his or her money somewhere where the predator earns a commission. Watch out for IRA Rollovers, Direct Cash Purchases, Reverse Mortgages, Consulting Fees for Assistance in Qualify for a Government Product, or the purchase of an Expensive Annuity. All of these transactions can be used for an inappropriate and unsuitable purpose.
If you hear these-or similar- “lines” from a telephone salesperson, just say “no thank you,” and hang up the telephone:
“You’ve won a free gift, vacation, or prize.” But you have to pay for “postage and handling” or other charges.
“You must act now, or the offer won’t be good.”
“You must send money, give a credit card or bank account number, or have a check picked up by courier.” You may hear this before you have had a chance to consider the offer carefully.
“You don’t need to check out the company with anyone.” The callers say you do not need to speak to anyone, including your family, lawyer, accountant, local better business bureau, or consumer protection agency.
“You can’t afford to miss this high-profit, no-risk offer.”Don’t buy from an unfamiliar company.
Legitimate businesses understand that you want more information about their company and are happy to comply.
Always ask for and wait until you receive written material about any offer or charity.
If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But, unfortunately, beware—not everything written down is true.
Always check out unfamiliar companies.
Check unfamiliar companies with your local consumer protection agency, better business bureau, state attorney general, the national fraud information center, or other watchdog groups. Unfortunately, not all bad businesses can be identified through these organizations.
Obtain a salesperson’s name, business identity, telephone number, street address, mailing address, and business license number before you transact business.
Some con artists give out false names, telephone numbers, addresses, and business license numbers. Verify the accuracy of these items.
Before you give money to a charity or make an investment…
Find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
Before you send money, ask yourself a simple question:
“What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?”
Don’t pay in advance for services.
Pay services only after they are delivered.
Be wary of companies that want to send a messenger to your home to pick up money, claiming it is part of their service to you.
In reality, they are taking your money without leaving any trace of who they are or where they can be reached.
Always take your time making a decision.
Legitimate companies won’t pressure you to make a snap decision.
Don’t pay for a “free prize”.
If a caller tells you the payment is for taxes, he or she is violating federal law.
Before you receive your next sales pitch, decide what your limits are—the kinds of financial information you will and won’t give out on the telephone.
Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial advisor.
It’s never rude to wait and think about an offer.
Never respond to an offer you don’t understand thoroughly.
Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
Be aware that your personal information is often brokered to telemarketers through third parties.
If you have been victimized once, be wary of persons who call offering to help you recover your losses for a fee paid in advance.
- Never sign blank insurance claim forms.
- Never give blanket authorization to a medical provider to bill for services rendered.
- Ask your medical providers what they will charge and what you will be expected to pay out-of-pocket.
- Carefully review your insurer’s explanation of the benefits statement. Call your insurer and provider if you have questions.
- Do not do business with door-to-door or telephone salespeople who tell you that services of medical equipment are free.
- Give your insurance/Medicare identification only to those who have provided you with medical services.
- Keep accurate records of all health care appointments.
- Know if your physician ordered equipment for you.
- Gifts to persons (caregivers, service providers, friends) who are not the natural objects of the elder’s love and commitment.
- Gifts to anyone that are so large, given the size and nature of the elder’s estate, as to threaten the elder’s economic security
- Loans, particularly if undocumented, to anyone; special scrutiny required if to non‑family members
- Actions by the elder’s fiduciary (attorney-in-fact, trustee, other) that reflect poor judgment or conflict of interest
- Existence of estate-planning documents naming non‑family members as fiduciaries or beneficiaries
- Existence of joint accounts with non‑family members
- Evidence that the elder signs checks prepared by others
- Bequest plans or other arrangements favoring one child, particularly if the child lives with elder.
- Evidence of excessive dependence on a child or other person, particularly if such other person is critical to the client’s independence and/or ability to avoid a nursing home
- Material inconsistency between elder’s understanding of estate and its true value
- Excessive fees charged by professionals (trustees, attorneys, financial advisors, stockbrokers, other)
- Unreasonable terms of loans or other financial arrangements.
- Contact Adult Protective Services
- Get an accounting of elder’s prior fiduciaries. Court procedures are available to compel these accountings.
- Institute conservatorship/guardianship procedures to formalize authority in a trusted person who will be accountable to the courts.
- Revoke or amend estate-planning documents that do not comport with the elder’s wishes.
- Commence a civil action against the person or persons who took financial advantage of the elder. A civil suit could include causes of action for elder abuse, fraud, negligence misrepresentation, theft and breach of contract.
- Remove assets from accounts held jointly with suspected abuser.
- Involve the police and raise possible criminal charges against abuser.
- Draft documents (durable power of attorney, trust, other) to effect true, independent wishes of the elder.
- Involve social worker, counselor, psychologist or professional geriatric care manager.
- Involve professional, bonded fiduciary to manage assets for elder.
INFOGRAPHIC: What to do if you have been scammed
It is estimated that One Million Elders lose over 2.6 Billion each year through Financial Abuse. In fact, Elders are a top target for scammers in the U.S.
So – What can you do if you or someone you love has been scammed?
Click Here to Open the Infographic in a new window.
What to do if someone you love is a victim What are the Signs & Symptoms of Elder Abuse?
At Elder Protection Center, Protect the People You Love is our number one priority. You are not alone. If you or someone you love is a victim of financial elder abuse, contact us today. Elder Protection Center is standing by for you and your loved ones – Today.
INFOGRAPHIC: The High Cost Of Elder Financial Abuse
Seniors Who Fall Victim To Financial Exploitation Pay A Price That Goes Beyond Money Lost.
Typically perpetrated by a family member, caregiver or another trusted individual, elder financial abuse – such as illegally or improperly taking funds or assets – can shake a victim’s financial footing and have a profound impact on that person’s well-being. Financial abuse can lead to significant distress and research shows it can increase risk for depression.
The problem usually goes unreported or undetected, despite being widespread.
What to do if someone you love is a victim
At Elder Protection Center, Protect the People You Love is our number one priority. You are not alone. If you or someone you love is a victim of financial elder abuse, contact us today. Elder Protection Center is standing by for you and your loved ones – Today.
INFOGRAPHIC: Elder Financial Abuse Scams
1-in-5 people over the age of 65 will report being a victim of fraud or abuse this year.
Because older Americans have worked and saved longer than their younger counterparts, they naturally hold a much larger share of the nation’s wealth. Scammers are all too familiar with these statistics and are constantly developing new strategies to illegally take this money from the elderly. There is no limit to the imagination of a crook.
Here are a few of the most common scams:
Click Here to Open the Infographic in a new window.
How Professional Predators Target Seniors
At Elder Protection Center, Protect the People You Love is our number one priority. You are not alone. If you or someone you love is a victim of financial elder abuse, contact us today. Elder Protection Center is standing by for you and your loved ones – Today.
4 Common Steps used by the Professional Predator to Target Seniors
Important Rule of Thumb:
Have all financial decisions evaluated by a trusted advisor who does not stand to earn a dime if you decide to purchase one of these products.
Tips for Avoiding Telemarketing Fraud
At Elder Protection Center we’re here to help you and the ones you love to navigate the complexities and concerns that often come with aging.
Protect the People You Love is our number one priority. You are not alone. We’d love to hear from you. Elder Protection Center is standing by for you and your loved ones – Today.
Tips for Avoiding Healthcare Fraud or Health Insurance Fraud
At Elder Protection Center we’re here to help you and the ones you love to navigate the complexities and concerns that often come with aging.
Protect the People You Love is our number one priority. You are not alone. We’d love to hear from you. Elder Protection Center is standing by for you and your loved ones – Today.
10 Tips to Protect Against Elder Financial Abuse
Tips and resources to help protect against financial abuse.
According to recently released Census Bureau projections, the number of Americans 65 and older will double over the next 30 years to 80 million. Because older Americans have worked and saved longer than their younger counterparts, they naturally hold a much larger share of the nation’s wealth.
Scammers are all too familiar with these statistics and are constantly developing new strategies to illegally take this money from the elderly. There is no limit to the imagination of a crook. Here are a few of the most common scams.
Some simple things that you can do to help protect your loved one:
10 Tips to Avoid Senior Identity Theft
According to the Bureau of Justice, over 3 million elderly Americans have their identity stolen by predators each year. Unfortunately, as long as there have been identity thieves, seniors have always been their preferred target. The elderly are often socially isolated, tend to be trusting and vulnerable, lonely, and may have early dementia or memory loss.
Additionally, many elderly do not check their credit reports on a regular basis, if at all, making early detection problematic.
The first time a senior or their care-provider may become aware that their identity has been stolen may be when bill collectors begin calling on charges that the predator made in their name.
Protect yourself and your elderly loved ones with these 10 tips to help avoid becoming a victim of identity theft:
12 Signs of Undue Influence and Incapacity
What To Do If You Suspect Undue Influence Or Incapacity
Click Here and Give Your Loved One Either or Both of These Quick Screening Tests
At Elder Protection Center we’re here to help you and the ones you love to navigate the complexities and concerns that often come with aging.
Protect the People You Love is our number one priority. You are not alone. We’d love to hear from you. Elder Protection Center is standing by for you and your loved ones – Today.
What To Do If You Suspect Undue Influence Or Incapacity
Click Here and Give Your Loved One Either or Both of These Quick Screening Tests
At Elder Protection Center we’re here to help you and the ones you love to navigate the complexities and concerns that often come with aging.
Protect the People You Love is our number one priority. You are not alone. We’d love to hear from you. Elder Protection Center is standing by for you and your loved ones – Today.
