A national law enforcement official who oversees a program to protect the elderly recently told us that fraud against older people is on the increase.

We see these heart-breaking cases everyday at ITAC: older people victimized by a con artist, family member or friend. They take advantage of the older person’s loneliness, generosity, and in some cases, diminished mental capacity.

Consumers who want to protect their older friends and family can take a page from the playbook of financial services companies, who are often the first to detect fraud against older persons. BITS, a division of The Financial Services Roundtable, recently published Protecting the Elderly and Vulnerable from Financial Fraud and Exploitation, a toolkit to give employees guidance on how to identify and respond to fraud and abuse.

Here’s are some of the “red flags” that may be a sign of fraud:

• Vulnerable adult has no knowledge of a newly-issued ATM, debit or credit card.
• Discovery of a vulnerable adult’s signature being forged for financial transactions or for the titles of his or her possessions.
• A set of “out-of-sync” check numbers.
• A sudden flurry of “bounced” checks and overdraft fees.
• Transaction review shows multiple small dollar checks posting to the senior’s account in the same month. This could be indicative of telemarketing or charity scams.
• Large withdrawals from a previously inactive checking or credit account or a new joint account.
• Abrupt increases in credit or debit card activity.
• Sudden appearance of credit card balances or ATM/debit card purchases or withdrawals with no prior history of such previous use.
• Withdrawals or purchases using ATM or debit cards that are:
  • Repetitive over a short period of time
  • Inconsistent with prior usage patterns or at times (e.g., late night or very early morning withdrawals by elderly customers, withdrawals at ATMs in distant parts of town by customers who don’t drive or are house bound.)
• Vulnerable adult appears confused about the account balance or transactions on his or her account.
• A caregiver appears to be getting paid too much or too often.
• Significant increases in monthly expenses paid which may indicate that expenses for persons other than the customers are being paid.
• Sudden changes in accounts or practices, such as unexplained withdrawals of large sums of money, particularly with a vulnerable adult who is escorted by another (e.g., caregiver, family member, “friend”) who appears to be directing the changing activity patterns.
• Vulnerable adult acknowledges providing personal and account information to a solicitor via the phone or email.
• Excitement about winning a sweepstakes or lottery.

Related posts:

1. A Big Score in the Fight Against Identity Theft
2. Identity Fraud Fact: Little Guy is Big Target
3. Footprints to a College Graduate’s Profile (Part III)
4. Footprints to a College Graduate’s Credit Profile (Part II)
5. Why Black Friday Could Be a Red Carpet for Scammers