Your October ACCI Advisor has arrived

Courtesy of USAA

She spends her days tending her gardens and fruit trees. She embroiders pillowcases to give as gifts. She cooks delicious, down-home meals. She does her best to spoil 48 grandchildren. And once, she gave a perfect stranger access to $20,000 in her checking account.

When criminals call offering help
The scam artist on the telephone called her by name when he offered to help her get her stimulus money a little quicker. "I knew that $300 check was coming in the mail, and I had been wondering about it a lot," explained 88-year-old Theresa. Theman on the phone made it sound like a good idea - there was no reason to wait weeks for the check to come to her mailbox.

So, she gave him what he asked for - her bank account number - and he claimed that he would have the stimulus check directly deposited into her account. Luckily, Theresa's story has a happy ending. She told her grandson about the call, and right away, they contacted her bank. Quick action likely protected a big chunk of Theresa's savings from being withdrawn by crooks.

Elder fraud's frequent unhappy endings
According to the National Center for Elder Abuse, elder fraud is any knowing, intentional, or negligent act that causes harm or exploitation to a vulnerable adult. It's a crime that many victims don't report.

"They may be afraid of retaliation, or they're embarrassed," says Tom Shaw, Enterprise Fraud Officer for financial services company, USAA. He adds, "Seniors may think if they tell someone, they'll lose more independence or control over their finances."

In his work, Shaw sees cases in which elderly victims are exploited by a family member or caregivers."Maybe it's the only person who ever comes to visit, or a trusted caregiver who is taking advantage," says Shaw, "Sadly, some don't report abuse because they are afraid of being left alone. They may be dependent on the help of the very person who is stealing from them."

Doing something about elder fraud
Besides the work of agencies like adult protective services, there are stiffer laws protecting seniors on the horizon. Most states in the U.S. already have legislation that includes mandatory reporting of suspected elder abuse or fraud.

Elder fraud costs the most vulnerable
One case in particular, sticks out in Shaw's mind: A USAA member was told he would receive an inheritance of $10 million dollars, but he had to first wire six figures in fees from his account to receive the inheritance. The transaction sent up a red flag for an employee who was trained to recognize signs of a potential scam.

"It feels really good when we catch and stop a potential disaster for our members," says Shaw, "If the money had been wired at the member's request, it wouldn't have been USAA's money lost, but we would have lost an opportunity to help protect that member's financial future."

Granny's advice
Even though Theresa's near-fraud experience happened three years ago, it was traumatic, and she recalls the details easily.
"Even though he already had my checking account number, he was pushy, and went on to try and get my Social Security number," she says, "That's when I got really nervous and said, 'This is a scam, isn't it?'" When the caller hung up on her, it was a clear sign to Theresa that she needed to tell someone and take action to protect her hard-earned savings.

"I tell people all the time what happened to me," she explains, "I especially tell my older friends because I don't want something bad to happen to them. I was lucky."

Tips for avoiding a scam.
Elder fraud can be particularly tough on anyone physically separated from an aging family member. Whether you're near or far from a vulnerable loved one, share these tips for avoiding a scam:

·    Never give personal or financial information to someone you
     don't know.
·    Never pay money to get a prize or other type of monetary
     distribution.
·    It is OK to hang up on someone pressuring you on the
     telephone.
·    Beware if someone asks you to wire money.
·    If you believe someone has exploited you financially, don't
     hesitate to call your bank or financial institution and someone
     you trust who can help.

What kind of thug targets seniors?
Crooks and scam artists look for easy victims and quick payoffs.
Here's what they believe about elders:

-There are valuables to take - assets like homes, proceeds from sales of appreciated real estate and retirement savings.

-A senior can be easily swayed if promised quick profits. Especially if there's concern about running out of money in retirement.

-Can be easy to deceive, especially if they suffer from memory problems or mental confusion.

-Seniors are socially isolated and want attention, even from strangers, so they're easily influenced and exploited.

Spotting a thief who is close to the victim
A trusted person may be forging checks, using credit cards without permission, using a senior's good credit to take out loans, adding themselves to accounts, embezzling, or using a fraudulent Power of Attorney for illegal access to an elder's finances.

Tom Shaw provides these examples to show how vulnerable adults might be targeted by someone they have an on-going relationship with:

·    An in-home health care provider steals a debit card from an
     elderly patient's home. The fraudster uses the card to buy a
     new mountain bike.

·    A son fills out a false Power Of Attorney, then uses it to add
     himself to his elderly mother's bank accounts. The son then
     opens two new accounts and transfers funds from the parent's
     account.

·    A neighbor steals checks and statements out of a senior's
     home and mailbox in order to forge and cash them at a local
     bank.

Getting help
If you suspect elder abuse, neglect, or exploitation, call 1-800-677-1116. To report suspected abuse in the community, contact your local adult protective services agency. For state reporting numbers, and more on elder fraud, visit the National Center on Elder Abuse website at www.ncea.aoa.gov.