Elder Financial Abuse: It Can Happen to Anyone
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
You may recall famous actor Mickey Rooney's emotional courtroom testimony about his owh experience of financial abuse. Perhaps you or someone you know may also be a victim. It's a crime that affects all economic levels and all social, cultural, and racial groups. In fact, nearly one out of every five Americans over the age of 65 has fallen victim to elder financial abuse. It's easy to understand why elderly individuals are attractive targets for financial abuse. They may have significant assets or equity in their homes and usually have a reqular source of income such as Social Security or a pension. They also may be especially vulnerable due to isolation, cognitive decline, physical disability, or other health problems. Victims often feel embarrassed or humiliated, silly or incompetent, or fear further isolation or repercussions from abusers-all reasons why these types of abuse often go unreported. This is why many elderly persons suffer in silence when it comes to financial abuse crimes committed against them. That's why it's important to raise awareness of the red flags surrounding this crime by talking with elderly loved ones and helping them understand they are not alone in dealing with financial abuse.
Watch out for these common scams from strangers
Some financial scams are easy to identify, but many are not quite so easy to spot. Here are a few of the most common scams designed to trick elderly individuals into giving up money, personal information, or property. Password fraud/identity theft-Technology -sa fraudsters may thieve an l enormous amount of personal information via the internet or emails and rob elderly persons of their identities. Hackers may gain access to heir victims email accounts and correspond with people and companies on their behalf. Scammers also set upi fake webaite for the pupose of obtaining formation such as Social Security numbers, dates of birth, addresses, or a variety of personal passwords-including those tied to personal bank accounts, credit and debit cards, and loan applications-then use that information for criminal purposes Government scams (CIRS/Medicare)-Million of Americans have become victims of scam phone calls from criminals posing as IRS agents in hopes of stealing money. In one of the most common scams, aggressive fraudsters threaten such things as arrest, deportation, and license revocation if taxpayers don't pay bogus ax bills with cash via wire transfers or prepaid debit or gift cards. In Medicare scams, Praters poe as Medicare representatives to obtain personal information or provide bogus services at makeshift mobile clinics in order to bill Medicare and pocket the money. Grandparent scam m-In this scheme, grandparents may receive phone calls or emails from fraudsters who dentally themselves as grandchildren saying "I’ve been arrested in another country' and "need money" Scammers may try to make it sound more legitimate by saying, "And by the way, don't tell mom or dad because they'll
Prize and sweepstakes fraud-This type of frauds generally involves telemarketing to vulnerable elders who are informed they are winners of lotteries or sweepstakes and mu7st pay the taxes on ten winnings before receiving the jackpot. The unsuspecting victims may be asked to mail or wire thousands of dollars to locations outside the U.S. Victims may never receive any other correspondence; or, in a variation of the scheme, they may receive "certified" checks in the mail for large sums of money. When the victims deposit the checks into their checking account
Sweetheart fraud-In this scenario, scammers take advantage of lonely, unsuspecting elderly individuals either in person or via social media channels. Once they gain the victims' trust and affection with false promises of love and companionship, the fraudsters find ways to swindle them out of money and/or property before disappearing. When the abusers are known According to the 2018 Wells Fargo Elder Needs Survey, older investors (68%) believe that a stranger would be the most likely perpetrator of financial exploitation against them. But as we stated earlier, the reality is very different-6% of elder financial crimes are committed by family members, friends, or trusted persons. Typical types of financial abuse include: Using ATM cards and stealing checks to withdraw monies from the victim's accounts In-home care providers charging for services, keeping change remands, paying bills that don’t belong to the vulnerable adult, asking the vulnerable adult to sign falsified time sheets, spending their work time on the phone, and not doing what they are paid to do Where to find help Awareness of the latest scams is one of the best ways to protect against financial abuse. Stay up to date by information visiting aarp.org/money/scams-fraud. on what to do if you, ones, and others you suspect are victims of an elder financial abuse crime go to wellsfargo.com/privacy-security/fraud/bank- -Scams. Investor Protection Trust (IPT) Elder Fraud Survey 2016
2 True Link Financial "True Link Report on Elder Financial Abuse 2015 3 Jewish Council for the Aging, National Center for Elder Abuse. Paley Rothman article, "Who Commits Elder Financial Abuse and Why Isn’t It Reported?" 2016
(This article ws written in collaboration with wall Homerding, Senior Vice President in Wellfargo in their Newport beach California Office).
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
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