Tips for Protecting Yourself Financially

If someone called you and said they were from your credit card company or bank, and they had a problem to discuss, would you give them confidential, personal information over the phone?
Don't be too quick to think it couldn't happen to you. One type of scam involves imposters posing as bank reps who call targeted victims about "problems" with their credit cards. They read off a list of phony charges made on the person's credit card to gain the card member's attention and card information. The person naturally gets upset and isn't thinking clearly so they give the caller their credit card numbers to help resolve the problem.

If the caller sounds especially friendly, convincing and kind, that may be the all it takes to separate that person from his or her hard-earned savings. Even the savviest person isn't immune to these scams because fraudulent cat and mouse games are always changing. Many scams purposely target seniors who have been known to be sympathetic to scammers.

This is one of the more common financial frauds aimed at grandparents. After listening to a sad tale on the phone about their "grandchild," the grandparent withdraws a large amount of cash from their bank and wires it to the bogus "granddaughter" or "grandson" who is "stranded" abroad in need of money. The grandchild has supposedly lost their wallet or passport abroad or they have been robbed of everything including their plane ticket. This is also a common email scam.

Unfortunately, even though some frauds have been around for years, there is always someone who is vulnerable to talking to a nice-sounding caller from a well-known company like a bank, credit card company, insurance agency or government organization who isn't who he says he is. But that caller has only one goal in mind: to gain access to your social security number and/or financial information.

How and Why Seniors are Targeted

Crooks use a variety of financial theft strategies. Here are some ways they get seniors and others to trust them.

• They purchase databases like direct mail focused on older adults or they buy lists of higher priced retirement communities or wealthy neighborhoods. They visit senior centers or health care centers where wealthy donors may be recognized on a wall or plaque to gain names of people who might be good targets.
• After a natural disaster, people are targeted to give money to a "fake" charity. Some scammers gain access to records of who has contributed to charities in the past. After the historic floods in Colorado in September, some telemarketers called people asking for credit card numbers to charge a donation. These callers were not usually legitimate.
• Unfortunately, seniors are often targets of scams because they may easily get confused and they want to trust the person they are talking to.
• People who live alone and are lonely may often be targets of fraudulent callers because they are known to respond to "nice-sounding" people.
• Many scams are Medicare or health-based. Because seniors have more medical issues it may seem natural to them to get calls about their health and the caller requests personal information.
• They want to make sure their bills get paid so when in doubt they give out confidential information when they shouldn't.

Tips for Protecting Yourself

• First off, never give personal banking anyone on the phone. Most banks only ask for personal information when absolutely necessary such as when you are opening or changing an account. The do not ask for personal information over the phone or by email because they recognize that both forms of communication are not completely not secure.
• Remember, financial institutions will not ask for non-public information by phone, e-mail or through a Web site. When in doubt, call your bank and ask if they've contacted you. Chances are they haven't.
• If an offer sounds good don't quickly react. Tell the caller to send it to you in writing.
• Don't reply to phone or email messages that don't seem quite right to you. If everyone did that, you would put the crooks out of business. From their perspective, it just wouldn't pay to keep doing what they're doing.
• If you want to make a donation to a charity, don't make the donation with a credit card or give out financial information over the phone.
• Stay up-to-date on your financial matters. Monitor your credit card and bank statements on a regular basis.

Keeping Elderly Parents & Friends Financially Safe

• Make regular in-person visits. Spend time with senior family members and friends. Make sure they are not lonely. You can do this by phone if you live out of the area, but in-person, open communication, is even better.
• Sit down with elderly parents and talk about how financial scams can occur. Let them know you are available to discuss any great "opportunity" they may have heard about.
• Put notes by the phones that say "Never Give Personal Banking Information to ANYONE."
• If a senior doesn't have close friends or family members close by they trust, suggest that they get an attorney to act as power of attorney as needed.
• Set up an annual or monthly budget for donations the person has an interest in. The senior has final say over their money but through a series of limited donations they can enjoy giving back to their community but just not over the phone to potential scammers.

Even though you are aware of how important it is to stay ahead of financial scams, fraudulent activity is gaining momentum. If no one was responding to requests for personal financial information, the scams would stop. Stay sharp, stay aware. Don't be tempted to give scammers valuable information and the opportunity to take what they want.