How to Avoid Financial Scams

Many financial scams target seniors specifically. Knowing the warning signs for these types of scams can help you avoid falling victim. With the increased use of technology in our daily lives, scam artists have more opportunities to practice their skills. Scammers can trick you or your loved one into giving up confidential personal and financial information by pretending to be a loved one or posing as a government employee. They can use this information to steal your identity, gain access to your financial accounts, or both.

Recently, there has been an increase in telephone scams where fraudsters call their victims, claiming to be from their bank or financial institution. Here are some common scams that target the elderly and how to avoid them:

Fake Check Scams

In recent years, scammers have become more creative in trying to defraud people out of money. One such tactic involves fake checks. Essentially, someone will send you a check for more than they owe you and claim it was an accident. They will then request that you wire them the excess funds. After you’ve sent the money, you’ll discover that the original check was a forgery.

For example, if someone sends you a $500 check when they only owe you $50 for a good or service, they will request that you wire them the $450 difference.

Fake check scammers frequently use legitimate-looking checks, making it difficult to detect fraud simply by looking at them. Instead, look for warning signs in the interaction. You’re probably being scammed if you receive a check and are asked to send money back. If you find yourself in this situation, seek expert advice from your bank, do not accept checks for more than your selling price, and never send money back to someone who sent you a check.

Medicare Scams

Scammers may also impersonate Medicare officials to obtain personal information from you and use it to commit identity theft and other fraudulent activities.

One thing to keep in mind is that Medicare employees will only call you under certain conditions. Medicare.gov highlights five key points to remember:

1. Unless you permit them in advance, Medicare will never contact you for your Medicare Number or other personal information.
2. Medicare will never contact you to try to sell you something.
3. If you give someone your Medicare number, you may receive calls making false promises. Guard this information and do nor share with potential scammers.
4. Medicare will never come to your house.
5. Medicare will not enroll you over the phone unless you first call.

Lottery + “You’ve Won…” Scams

If you receive a phone call, email, or letter claiming to have won the lottery, a new car, or any other large-ticket item that appears too good to be true or that you did not enter to win, it’s likely a scam. Lottery and other ”you’ve won…“ scams will frequently ask you to wire money to pay a small fee. It will always be fake, whether a customs fee or a tax charge. The person behind the scam will disappear with the money and leave you with a big headache and an empty bank account.

When it comes to these types of scams, acting rationally is your best bet. Keep in mind that any lottery or sweepstakes requiring advance payment is a scam. Similarly, if you did not enter a contest or if they require your social security number to claim a prize, it’s probably a scam.

Keeping you and your loved ones safe from scammers is just one aspect of providing care. Are you taking care of a senior at home? Get some more tips from Mass Care Link to give your loved one the best care.