Financial fraud targeting the elderly is on the rise. In October 2022 the Justice Department announced that it would be stepping up its efforts to combat criminals who target older adults. Justice Department
The efforts include increasing the number of U.S Attorney’s Offices included in the DOJ’s Transnational Elder Fraud Strike Force. Other members of the Department of Justice’s Transnational Elder Fraud Strike Force consist of the FBI, the U.S Postal Inspection Service, Homeland Security Investigations, and the departments Consumer Protection Branch.
As an older adult or as someone who cares for an older adult there are steps you can take to safeguard against financial fraud.
Appoint a Trusted Contact for Financial Accounts
The Financial Industry Regulatory Authority, the North American Securities Administrators Association and the U.S. Securities and Exchange Commission have partnered together to encourage investors to setup a trusted contact at their financial institutions.
The FINRA under rule 4512 requires members to ask customers to appoint a trusted contact when they open or update an account. A customer is not required to setup a trusted contact.
A trusted contact is a person you appoint that the financial firm can reach out to if there is a problem with your account and they are unable to contact you.
The contact can be a trustworthy friend, family member, caregiver, attorney, or another person 18 years of age or older. You can have more than one trusted contact and you can add or change a trusted contact at any time.
A trusted contact cannot access or make changes to your account. They have no authority to act on your behalf. Their role is very limited. They are just a point of contact between you and your financial institution to protect you from fraud.
In the event your account has been compromised in some way you must act quickly to prevent financial loss and identity theft. If the financial institution is unable to reach you immediately, they will call your trusted contact so that they can alert you to the potential problem.
Why is it important to appoint a trusted contact?
Identity and financial theft are a major problem. By appointing a trusted contact, it adds another layer of security to your account.
For seniors it is important to add a trusted contact before any health or cognitive issues arise that may prevent them from making decisions about their account.
How can you add a trusted contact?
When you open a new brokerage account you will be asked if you would like to appoint a trusted contact.
If you already have an account, some brokerage firms are contacting their customers asking if they would like to add a trusted contact. Be aware that scammers are taking advantage of the trusted contact service. Never respond to an email or phone call from someone claiming to be a financial firm. Instead call the firm directly or log in online to make changes to your account.
You can add a trusted contact at any time by calling your financial institution or by logging into your account online.
You will need to know the persons full name, phone number and physical address. Any additional contact information is also helpful such as an email address.
In what situations would a financial firm reach out to a trusted contact?
In the event they are unable to reach you they will call your trusted contact if they notice any uncharacteristic changes to your account such as large or repeated withdrawals or transfers.
If they notice any sudden or unexpected changes to financial documents.
If they believe you are acting in an unusual manner that may signal a problem with your health or wellbeing.
If they suspect any kind of financial exploitation.
Designate a Financial Power of Attorney
This should be done while you are still in good health. If you become disabled, the person who is your designated Financial Power of Attorney can make financial decisions on your behalf. Meet with an attorney who can help you draw up the document. You can specify who is authorized to act on your behalf and what powers you want them to have.
Monitor Your Financial Accounts
Sign up for online access to all your financial accounts and monitor those accounts regularly for any unusual activity.
Review your monthly statements.
Setup fraud alerts on your accounts, sign up for email and text transaction alerts.
Prevent Mailbox Theft
According to the United States Postal Inspection Service there were 33,000 reports of incidents involving mail carrier robberies and mail theft in 2021.
Sending or receiving any mail that is confidential or contains financial information can be dangerous. Avoid putting anything in your mailbox that can lead to identity or financial theft. Sign up for online bill pay and electronic statements so that those documents are no longer sent to you in the mail. Have all of your checks directly deposited into your bank account.
Sign up for USPS Informed Delivery. This is a free service through the United States Postal Service that allows you to view greyscale images of the exterior, address side of letter-sized mail pieces and track packages in one convenient location. You can view notifications from any smartphone, tablet, or computer. You can sign up for a daily email that shows you the mail that will be delivered to you that day so you will know if something is missing.
Other steps you can take to keep your mail safe;
Take anything confidential directly to the post office to mail.
If you are sending mail from your home put it in the mailbox as close to pick up time as possible.
Retrieve mail from your mailbox promptly.
If you are going to be away from home for an extended period of time sign up for USPS hold mail service. You can sign up online USPS Hold Mail Service
If you suspect mail has been stolen from your mailbox, report it to the USPIS on their website uspis.gov/report, or by calling 877-876-2455.
Report any stolen mail to your local police department.
If a check you wrote is stolen report it to your bank. If it was a check sent to you report it to your bank and the institution who issued the check.
Freeze your Credit Reports
If you have not already done so place a security freeze on your credit reports. This can be done online or by calling the three major credit bureaus, Transunion, Equifax and Experian.
Placing a security freeze on your credit reports is one of the best ways to protect yourself against identity and financial theft.
Request a copy of your credit reports from the three major credit bureaus and check them for accuracy. If errors are found report them to the agencies. You are entitled to a free copy of your credit report with all three credit bureaus.
https://www.annualcreditreport.com/index.action
Sign up for Credit Karma
and
Both sites offer free credit and financial monitoring tools. You can check your credit score regularly using either site.
Other Steps to Stay Safe
Protect your personal data such as bank account numbers, Social Security number, debit and credit card numbers and other information. Don’t leave these items laying around where others can access them.
Stay connected with family, friends and the local community.
Password protect your phone, computer and other devices.
Lock your valuable documents in a fireproof home safe.
Don’t carry private or financial documents and information in your purse or wallet where they can be easily stolen.
Use a strong, unique password for all the websites you visit. Never use the same password twice and use a password manager to store your login information.
Enable multi-factor authentication for all of your financial and email accounts.
Don’t click on links that you are unsure of. Be cautious opening attachments.
Place a fraud alert on your accounts with the three major credit bureaus, Transunion, Equifax and Experian.
Scam Warning Signs
Email messages, text message or phone calls requesting any kind of personal or financial information. Even if the message looks like it is coming from your bank, credit card company or someone else you do business with do not respond to the message. Instead call your financial institution directly using a number you know to be true.
You receive a phone call, email or text message pressuring you into making a quick decision. Scammers often try to instill a sense of urgency or panic to trick victims into providing private information.
You notice changes or charges to your bank accounts that you did not make.
There are unauthorized charges on your credit cards.
You receive an email invoice for items you did not purchase.
If You Have Been the Victim of a Scam
Contact your states Attorneys General Office to report the scam.
Report scams to the Federal Trade Commission.
Report scams to your State Consumer Protection Office.
State Consumer Protection Office
Report fraud to the Department of Justice
Call your local police department to report the scam and file a police report.
Request a copy of your credit reports from the three major credit bureau’s Transunion, Equifax and Experian and check for any errors. You are entitled to a free copy of each report annually. Go to Annual Credit Report to request a copy of your reports.
Contact the creditors and financial institutions you do business with. Let them know that your accounts may have been compromised.
Change the passwords and security questions on all of your online accounts.
Keep a record of the steps you take to report and document the scam.
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