Older adults should be on the alert for scams that are increasingly occurring throughout the nation. They are particularly at risk for financial fraud.
This type of fraud is rampant because scam artists know that some seniors have accumulated substantial assets through the years. Perpetrators range from those who are relatives of the victim(s) to total strangers.
To help combat the scams, the Federal Deposit Insurance Corporation (FDIC) has compiled tips on how to reduce the probability of financial fraud. Below are some of the FDIC’s common-sense suggestions.
If you – like this writer – are a senior citizen, the first order of business is to protect your personal information. Never provide Social Security numbers, bank account information, personal identification numbers (PINS), and other sensitive information to unsolicited contacts – telephone calls, letters, email, fax, or text messages.
Another means of preventing financial scams is to sign up for direct deposit, now required for most government payments. This is the fastest and simplest way to receive payments. And it eliminates the possibility of their being stolen or lost in the mail.
You should actively monitor your credit card bills and bank statements. Review statements and bills as soon as they are delivered. Check for unauthorized purchases, withdrawals, or any suspicious activity.
If fraud is suspected, report it to the proper authorities as soon as it is discovered. Many older people make the mistake of not contacting law enforcement agencies when they have been victimized. Often, they are embarrassed that someone has taken advantage of them.
Many seniors prepare for future contingencies by appointing someone to make financial decisions and transact business for them. They do this by providing power of attorney. You should be careful about whom you choose for this purpose.
If you rely on a financial advisor to assist you in making investment decisions, be diligent. While the great majority of planners, brokers, and other professionals are honest and reputable, some are not. Before committing to work with a financial advisor, you should confirm that he or she has the proper credentials and has a clean record.
All people should seek to learn more about common scams and frauds and how to respond to them.
Wayne Curtis, Ph.D., a former superintendent of Alabama banks and Troy University business school dean, is retired from the board of directors of First United Security Bank. He may be contacted at wccurtis39@gmail.com.
