Fraud prevention tips for older adults

March is Fraud Prevention Month in Canada. As scammers become increasingly sophisticated and aggressive, it’s important to learn how to protect yourself from common scams that target older adults.

Anyone can be a victim of fraud, but scammers often target older adults more than others. In fact, the Government of Canada reports fraud is the number one crime against older Canadians. Older people may be an easy target because they’re home during the day to answer the door or phone. They may also be more trusting, and some may not have family or friends close by to ask for a second opinion.

Contrary to popular belief, it’s not just people with a lot of money who fall victim to fraud. Fraudsters often steal small amounts of money from a lot of people.

As fraudsters become more sophisticated and aggressive, and technology makes it harder to spot scams, the onus is on each of us to protect ourselves.

Common scams targeting older adults

In their Seniors Guidebook to Safety and Security, the RCMP discusses common types of scams targeting older adults and offers fraud prevention tips to help you protect yourself. Let’s look at three of the most common situations.

Grandparent scams

In grandparent scams, the fraudster pretends to be a grandchild or other family member in need of immediate financial assistance. The caller may say they have been arrested and need you to send money to pay bail. They’ll often beg you not to tell their parents.

If you receive a call or message like this:

Remain calm. The fraudster is counting on you getting emotional and complying with their demands.
Do not give the caller any personal information.
No matter how aggressive or insistent the caller gets, take the time to verify. Hang up and call or text the grandchild or other family member to confirm their whereabouts.
Above all, do not send money.

Romance scams

Loneliness is a growing concern in our society, leading many older adults to turn to the internet to find romance. In a romance scam, the fraudster will gain your trust over a period of weeks, or even months, before asking for money. Then, they may claim to need money for an emergency, or say they wish you could meet in person but they can’t afford to travel. Devious scammers may also initially refuse your offer of financial help in order to further gain your trust.

If you’re looking for love or companionship online, here are some things you can do to protect yourself:

Use only credible dating sites. Many scammers create fake sites to lure victims.
Be cautious when giving out personal information to people you meet online.
Be skeptical if someone claims to have fallen in love with you quickly.
Do not send money to someone you’ve never met. If they offer to send you money, never provide banking or credit card information.

Extortion and phishing scams

Extortion happens any time a person uses coercion to unlawfully obtain money, property or services.

These scams often start with an email or text message saying you owe money. The message may demand immediate payment in the form of gift cards, bitcoin, money transfer, or credit card. It may threaten you with fines, jail time, or deportation if you don’t pay up.

In other situations, the fraudster tells you that you have a refund pending, or you’ve won money. In this case, the sender is “phishing” to get their hands on personal or financial information they can use to defraud you or steal your identity.

If you get a message like this:

Be skeptical. Ask yourself why any company or government agency would ask you to provide information they already know about you. Remember that the government or any legitimate organization will never ask for payment by gift card, money transfer, or bitcoin.
Never click any links in the message.
Verify the claim using legitimate channels. Use the phone number or website information in your records to contact the organization claiming to send the message.

Visit the RCMP website for more fraud prevention tips and for information on other types of fraud.

What to do if you are a victim of fraud

Fraud can happen to anyone, anywhere, at any time, yet victims are often embarrassed to admit they’ve fallen prey to scammers.

If you believe you’ve been scammed, it’s important to report it. Reporting helps law enforcement to combat fraud and take steps to warn others. The Canadian Anti-Fraud Centre suggests six steps to follow. Details are available on their website.

Collect your thoughts.
Contact your financial institutions.
Contact the police.
Report the incident.
Report to government agencies.
Protect yourself from future fraud.

Sharing your experience with friends and family can help prevent them from becoming a victim.

Fraud prevention guidelines

Although every situation is different, keep these general fraud prevention guidelines in mind.

Question everything. Even if it’s your nature to be trusting, learn to be skeptical and question every email, phone call or text message.
Stay calm. Fraudsters prey on your emotions. No matter how aggressive or insistent the claim, take your time and think things through.
Confirm using legitimate sources. Call the company or agency using the phone number on your statement, or sign into their website directly.
Report it. Report scam emails as spam. Delete and block fraudulent text messages. And if you are a victim of fraud, report it to the authorities.

Taking the time to educate yourself is your best defence against fraud. Visit the sites referenced in this article to learn more about how you can protect yourself. And take the time to share this information with friends and family members.