Senior Scams

How an Estate Plan Can Protect Against Financial Exploitation

October 13, 2022 | by William S. Wilson

Although we may think of phishing emails, robocalls, or other types of scams when we think about financial exploitation, it is far more common for this type of exploitation to be done by relatives, caregivers, neighbors, or friends someone believed they could trust. Financial exploitation is more common than most people realize, but understanding financial abuse and strategies can help people avoid being exploited.

Several studies have shown that individuals who have a cognitive impairment, are in poor physical health, are isolated, or have a learning disability may be more at risk for financial abuse.

Studies have also revealed common characteristics of individuals who financially exploit others, including those who have substance abuse issues, mental illness, or who are financially dependent on the person they are exploiting.

Prevent Elder Financial Abuse

December 8, 2019 | by William S. Wilson

The financial abuse of elderly people in the United States is unfortunately a very serious problem, with more than $36 billion being stolen from elders each year according to The True Link Report on Elder Finance Abuse 2015.

The True Link study showed that seniors from all walks of life are susceptible to this type of manipulation, and a significant number of victims were younger seniors with college educations and not living in isolation. In fact, they lost more to abuse than those who were older, isolated, and less educated.

Unfortunately, the research shows that family members are the most frequent abusers of seniors. A relative might ask a widow or widower with assets for a “loan” to tide them over or invest in a new business and then fail to repay the loan (or the business fails or the investment is a scam). In cases such as these, the elder often has no recourse.

Beware! There is No Such Thing as an IRS Phone Call

April 16, 2018 | by William S. Wilson

The latest the telephone scam is the “IRS Phone Call” from an IRS agent. The scam works like this: The caller who claims to be an IRS agent tells the person that he/she is an employee of the IRS and that he owes back taxes and must pay them immediately. The ” agent” then tells them that the victim must pay by wire, credit card, prepaid debit or gift card. The scammer goes on to say if these taxes are not paid immediately, they are risking losing his home, being arrested or even deported. According to Kiplinger Tax Letter (vol.93, no.7), Seniors and low-income individuals are the most at risk. (This scam is much akin to the “grandson” calling the grandmother (usually an older adult that has grandkids) that he is in jail and needs bail money to get out. Of course, the grandson is a scammer who pretends to be her grandson asking for some quick money.) Most of these fraudulent calls are perpetrated around April 15th- tax time.

The truth is that the IRS never makes phone calls stating that you owe taxes or that a refund is coming your way. The procedure is that the IRS contacts you by mail.

The latest scheme is for the scammer to file a fake income tax return with your private information and have the refund distributed to one of your accounts. Then the scammer calls as an IRS agent telling the victim that there was fraud in the tax return and that the victim must send the refund back to the scammer’s address or wire destination.(Business Insider, The IRS isn’t calling you-it’s a scam and here’s what to do if it happens to you, by Tanya Loudenback 4/4/18.)