As we get older, we like to think that our experience makes us wiser, but unfortunately, it also makes us targets for scammers. If you’re not careful, your hard-earned money could end up in the wrong hands. But don’t worry, we’re here to help you stay safe.
What is Financial Exploitation?
Financial exploitation is when someone—often a scammer or even a trusted individual—takes advantage of you to steal your money or assets. It’s more common than you think, especially among older adults. In 2023 alone, over 101,000 people aged 60 and older lost nearly $3.4 billion to these schemes.
Common Scams to Watch Out For
Here are some of the most common ways scammers try to trick you:
- Tech Support Scams: Someone calls pretending to be from a well-known tech company, claiming your computer has a virus. They’ll ask for remote access to “fix” it, but what they really want is your personal information or money.
- Investment Fraud: Scammers promise you high returns on investments, like in Ponzi schemes or fake stocks. They might even use connections from your community to gain your trust.
- Power of Attorney Abuse: This happens when a person you trust to manage your finances misuses that power for their own gain.
- Medicare or Medicaid Fraud: This involves fake billing for services you never received or charging you twice for the same service.
- Homeowner Scams: Be wary of offers for mortgage relief, reverse mortgages, or home improvement deals that sound too good to be true.
How Scammers Are Using AI
Scammers are getting more tech-savvy, using artificial intelligence (AI) to create fake voices or videos that seem real. This makes it even harder to tell when you’re being tricked. Always be cautious if something seems off, especially if you get a call or email that doesn’t seem quite right.
How to Protect Yourself
Here are some easy steps you can take to keep your money safe:
- Stay Skeptical: If someone calls or emails asking for personal information or money, hang up and call the company directly to verify.
- Watch Your Accounts: Keep an eye on your bank accounts for any unusual activity, like large withdrawals you didn’t make.
- Be Careful Online: Don’t click on links or open attachments in emails from people you don’t know. Scammers can use these to get into your computer.
- Talk About It: Keep the lines of communication open with your family. Let them know if something seems fishy.
- Get Insurance: Consider getting identity theft insurance to help cover the costs if you do fall victim to a scam.
Plan Ahead
It’s also a good idea to set up protections in advance, like naming a trusted person to help manage your finances or setting up a revocable trust to ensure your money goes where you want it to. Make sure your family knows your wishes and keep everything documented.
Staying Informed and Supported
Stay updated on the latest scams by signing up for alerts from trusted organizations like the Federal Trade Commission (FTC) and the Justice Department. They offer great tips on how to avoid scams and protect your money.
If you ever find yourself a victim of a scam, don’t hesitate to reach out for help. There are services, like Wayne State University’s SAFE program, that can assist you in recovering from the financial and emotional impact of being scammed.
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