Elder financial exploitation (EFE) is the illegal or improper use of an older adult’s funds, property, or assets. This plays out in a variety of common scams, often resulting in the older adult transferring money to a stranger or imposter for a promised benefit or good that the older adult does not receive.
Common Elder Financial Exploitation Scams
- Government Imposter Scams: Fraudsters will impersonate U.S. government official agencies that are well known to the older adult (i.e., Social Security Administration; Department of Health and Human Services; Medicare/Medicaid Services; Internal Revenue Service) and threaten the person with arrest or seizure of assets unless some type of payment is received.
- Romance Scams: Fraudsters will create fictitious online dating profiles or social media accounts to establish a relationship with an older person. Once they’ve earned their trust, the fraudster often shares stories of “hardship” and asks for money to be sent. This can occur one time or over a period as the ruse continues.
- Emergency/Person In Need Scams: Also known as the “grandparent scams,” these scenarios involve fraudsters who contact older adults and impersonate either a grandchild, a relative, or an official. The goal: deceive the victim into believing a loved one is facing an emergency (medical or jail, often) and needs money sent immediately.
- Lottery and Sweepstakes Scams: Fraudsters impersonate lottery, prize, or sweepstakes representatives and con the older adult into believing they won. The victim is told they need to send money upfront for shipping, taxes, or other fees to collect their “prize” – which doesn’t exist.
- Tech and Customer Support Scams: Fraudsters will impersonate well-known technology companies and customer support representatives, falsely claiming that a virus or other malware has compromised the victim’s computer. This ruse cons older adults into allowing remote access to their computer to “fix it,” but the scammer will install malware instead – stealing private information and credit card numbers. After the fraudster receives payment for these fraudulent services, they continue the ruse promising a refund to further exploit the older adult out of money.
Concerned you or a loved one has been involved in Elder Financial Exploitation?
Contact a Rally Credit Union representative at 361-986-4500 or 1-800-622-3631, or visit a local branch. We can help assess your involvement and determine next steps.
