THE THIRD AGE

THE THIRD AGE
Protect yourself, family from financial scams

By ANN GOWANS

Published Monday, March 19, 2007

Financial exploitation is a crime that is growing in this country as an increasing part of our population moves through middle age and begins to put serious money away for their retirement years.

This crime is defined as the illegal or improper use of a mid-life, elderly or disabled adult’s resources for another person’s profit. It occurs when an adult is tricked or coerced into handing over money to a son, daughter, relative or stranger. It also might occur without the adult’s knowledge or if he or she is mentally incapable of giving consent. This crime can take the form of stealing, forgery, identity theft or fraudulent use of a credit, debit or ATM card. Exploitation of more than $50 is considered a felony.

All adults are targets, but financial thieves especially prey on those who are at least 60 years old and any disabled adult who is between 18 and 59. These are the populations who have become prime territory for predators because they sometimes think more slowly, are generally more trusting and often refuse to believe that their children could engage in any crime against them.

People are often caught by responding to fake prizes. One scenario goes like this: A stranger approaches a target and tells them that they have won a prize, then asks them to send a check to pay the taxes on the prize or obtains the credit card number from the target, saying it is needed to pay for the shipping charges on the prize. Another form of exploitation is carried out when a stranger charges a vulnerable adult an excessive rent or unreasonable fees for basic care services such as transportation, food or medicine.

Unsolicited work is a rapidly growing spring scam that takes place every year as folks think about repairs and upgrades to their homes. A stranger might unexpectedly arrive at an adult’s home and offer to perform work for a reasonable fee. After starting the work, the stranger then insists that the clients pay more than originally agreed or the work will not be completed. Afraid of leaving something important like roof, gutter, driveway or yard work half done, the patsy pays more and more, sometimes thousands more.

Another scam that targets primarily older people is carried out when a stranger arrives and convinces their prey that a child has been seriously injured or is in jail and needs money for medical treatment or bail. Rather than seeking help from a lawyer, the person gives money to the stranger to expedite help for their child.

The attorneys general of most states recommend you protect yourself from these kinds of scams and exploitations by:

● First, asking a trusted friend or relative to review your monthly statements or other financial documents.

● Second, contacting your legal representative before you prepare any power of attorney. This kind of document should designate the responsibilities and limitation of the person or persons identified as your power of attorney.

● Third, be sure to specify the amount, if any, of compensation the power of attorney can be given and make sure you completely understand and document any lifelong-care agreement.

Several good tips for protecting your money are to use direct deposit for your check. Don’t sign blank checks and allow anyone to fill in the amount. Get to know your banker, attorney and financial consultant; they can detect changes in your financial activity that might signal a problem. Cancel your ATM card if you never use it. Don’t give anyone your ATM PIN number. Check your bank statement carefully for any unauthorized transactions. Be cautious of joint accounts, and don’t sign anything you don’t understand. Ask your bank about ways to help protect your money: It might be able to arrange your accounts to control access to your funds.

These things can protect you, your loved ones and your vulnerable children from financial exploitation. To report any problems, call your state department of senior services or your attorney general’s office.

Columbian Ann Gowans has a doctorate in social gerontology and medical sociology. She has worked and taught in the field for 25 years. You may reach her via e-mail at editor@tribmail.com.