Every year, thousands of older adults fall victim to scams. According to a 2023 report by the AARP, almost $30 billion is stolen annually from Americans over age 60, including by scammers and “trusted” family or caregivers. Despite widespread awareness of this issue, scammers continue to get away with their deceptive schemes.
How can we protect our loved ones from being targets of scams? To help shed light on this issue, let’s explore the fictional story of Mr. Dell, an older adult navigating a situation that’s based on true events.
The Scam: Conning Mr. Dell
The bank teller looked up at Mr. Dell, confused. “You want to withdraw $15,000 in cash?” she asked.
Mr. Dell nodded and smiled nervously.
“May I ask what this is for, Mr. Dell?”
“Well,” he said, “I’m having some work done on my house , and – um – the contractor’s waiting. I’m late on paying and I told him I’d get it …”. He trailed off as he spoke.
The teller gave him a long look. “OK, I’m going to check with the manager. Please give me a moment.”
She hurried away.
As Mr. Dell watched her go, he felt shaky and his stomach turned over – his feet hurt from the walk. He had told the teller just what the man on the phone had instructed. He said it would be fine and there was nothing to worry about. So, then why did she need the manager? It was his money, and he could do what he wanted with it!
When the teller came back with her supervisor, Mr. Dell repeated the story. He lied convincingly, even getting a little angry before they finally gave him two thick stacks of money, totaling $15,000. He quickly stuffed the bills in his coat and walked out, not daring to look back.
He walked down the street to the shipping store. Once inside, he carefully wrapped the money in a brown paper bag, just as the man on the phone said to. He took a label and wrote out the address – somewhere in New Mexico – and handed it to the clerk to send across the country with an overnight rush.
He then walked outside into the sunshine and felt relief. He had done it without alerting anyone, and now he hoped the man on the phone would leave him alone.
The Victim: Understanding Mr. Dell
While Mr. Dell is fictional, the unfortunate reality is that his situation is all too common. Mr. Dell fell victim to a sophisticated scam that evolved over a 6-hour phone conversation with a stranger (a.k.a. a scammer).
The stranger skillfully manipulated Mr. Dell by instilling fear through veiled threats of exposing his personal information, evoking compassion by fabricating stories of desperate poverty and hunger within his community, and exploiting his overwhelming desire to safeguard himself from future scams. The manipulation left Mr. Dell feeling disoriented and desperate to make the phone call end and the man go away, so he granted the caller unrestricted access to his computer, bank account, and other private details. He was coached on how to send money without raising suspicion. Mr. Dell never told his family, nor did he seek help – leaving the scammer successful and himself in utter despair.
While it may seem unbelievable that Mr. Dell was unaware of – or chose to ignore – the obvious red flags that might have led him to hang up the phone in the first place, it’s not uncommon. It’s important to recognize that Mr. Dell, who is nearly 80, may not have heard of this type of scam before. Older adults can be easy prey due to declining mental health or loneliness.
Scammers prey on a person’s trusting nature, need for connection, fear, and/or desire to protect themselves.. They are adept at using guilt and shame to make sure a victim hides the truth from those who would help them. These professional criminals practice the art of fraud until it is well polished.
Blaming Mr. Dell for falling for this deception is not practical or helpful. Many times it takes a professional to help protect the older adults we care about.
The Solution: Protecting Mr. Dell
Mr. Dell’s family became aware of his struggles with memory loss and confusion, which made once simple financial tasks difficult for him. They needed a professional who could not only oversee his finances but also comprehend the challenges Mr. Dell and his family were facing. In the real-life version of this story, they decided to hire the services of a daily money manager to help implement measures to mitigate the risk of fraud.
Here are a few steps to take before a fraud is perpetrated or after, in order to prevent a repeat performance by scammers.
Step 1: Set Up Online Access and Review Often
Monitor activity through financial institutions’ online portals. As spending patterns become familiar, unusual expenditures become obvious and can be investigated. Further, enlist the bank by meeting with a representative who can lay out options and products that may help protect your loved one from fraud.
Step 2: Consolidate Accounts
Having fewer financial accounts (banks, accounts, and credit cards) enables quicker identification of fraud.
Step 3: Limit Funds and Access
Having only the monthly funds a person needs to live on in the primary checking account can help prevent large and/or unauthorized withdrawals. Any savings can be placed into an investment account accessed only by a financial advisor or similarly responsible party.
Step 4: Set Alerts
Set up an email or text notification from the bank to a trusted party if a withdrawal is higher than a set amount or unusual activity is detected.
Step 5: Get Involved
There is no substitute for neighbors, family, and friends taking an interest. The more an older person is connected to a caring network, the more likely they are to accept advice and reach out when they are confused, worried, or feeling pressured.
Step 6: Consider Hiring Professionals.
Put a financial team in place. A Daily Money Manager can monitor, alert, and set up systems to protect from fraud. A Financial Advisor can hold reserve monies safely, help them grow, and help set up a monthly draw that feeds into a controlled household budget. A CPA can backstop, review spending overall and watch for tax-related issues. All these professionals provide an extra set of eyes.
Today Mr. Dell and his family have a newfound sense of security and control over his financial well-being. If you’re interested in learning more or would like a consultation to discuss your situation, please don’t hesitate to reach out to AADMM to find a daily money manager near you. We’re here to help you navigate your financial journey with expertise and care.
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George Petrides is a daily money manager for Everyday Money Management and draws great satisfaction in helping others plan, organize, and simplify for peace of mind.
