Financial Fraud Impacts Seniors on Vancouver Island

3/14/2011

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Reports of financial fraud related to elder abuse are on the rise on Vancouver Island. The Island is an attractive destination for retirees and it is estimated that over 18 per cent of the population is 65+ years old. This makes Vancouver Island a hot bed of activity for unscrupulous scammers looking to take advantage of the senior population.

"Financial fraud is one of the fastest growing forms of elder abuse. Financial elder abuse occurs when seniors pocketbooks are exploited by scammers who take advantage of a persons vulnerabilities that may be associated with their age, like hearing loss, loneliness, physical limitations or impaired mental capacity," says Detective Rick Anthony of the Victoria Police Department. "Elder abuse is a crime and it affects thousands of seniors from all social, religious, economic and cultural backgrounds."

"Most elder abuse happens to a senior by someone they know, such as a family member, friend or caregiver," says Rosalind Scott, Executive Director of BBB Vancouver Island. "Many victims do not realize they have been taken advantage of, or when they do know they are very embarrassed and do not want to tell anyone about it."

Common financial elder abuse frauds:
1) Undue influence - Vulnerable seniors are often duped into making financial decisions that impact them dramatically by someone they know or someone appearing in an 'official' capacity who swindles them into giving up money, property, decision making capacity or personal information. In some instances elders have been tricked into signing over their homes, making large investments or donating large sums of money. Often the scammers play on the emotional heartstrings of the elder, use confusing tactics or convince the senior that they must take action for their own well-being.

2) Unauthorized access to banking or financial information - Building up a relationship of trust some scammers use this to entice elders to hand over private banking and financial information such as bank account numbers, credit card numbers, account balances, passwords and PIN numbers.

3) Unsolicited home repair work - Knowing that many elders are limited physically and possibly unable to complete many routine home repairs, fraudsters will often point out a project that may need doing at a senior's residence. Many elders, embarrassed or concerned about the state of their homes will hire scammers who will overcharge, do poor quality work or steal directly from the elder.

4) Telemarketing and mail fraud - Everyday thousands of seniors are targeted by fraudulent telemarketers who often pretend to sound official while conducting credit card fraud, lottery scams, investment scams and identity theft.

Recognizing the patterns of fraud:
Unfortunately financial elder abuse can be difficult to identify. It often takes a caring family, friend or caregiver to recognize that financial fraud has taken place. If you know of a vulnerable senior be wary of the following signs:
• Belongings or property is missing;
• Unusual activity in bank accounts;
• Complaints from senior that they suddenly cannot afford normal purchases;
• Suspicious stories about strangers or people they know getting involved in personal affairs;
• Unnecessary purchases (often with large price tags);
• Sudden changes to Power of Attorney or Will;
• Sudden interest in investment or business opportunity;
• Claims they have won a prize, lottery or vacation;
• Numerous unpaid bills;
• Bounced cheques.

If you or someone you know has become a victim of financial elder abuse report to your local police immediately.

For more information on Fraud Prevention Month or for updates on fraud related topics this month visit www.vi.bbb.org/fraud-prevention-monthor the Canadian Anti-Fraud Centre at www.phonebusters.com.

For more information about the BBB visit www.vi.bbb.org. For more information about the Victoria Police Department visit www.vicpd.ca.
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