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B y T h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n
n y o n e c a n b e a v ic tim o f f in a n c ia l f r a u d , b u t o ld e r
a d u lts a r e p a r tic u la r ly a t r is k . A m o n g th e r e a s o n s :
S c a m a r tis ts a n d th ie v e s k n o w th a t m a n y s e n io r c it-
iz e n s h a v e a c c u m u la te d m o n e y a n d o th e r a s s e ts th r o u g h o u t
th e y e a r s . T h o s e w h o c o m m it e ld e r f r a u d r a n g e f r o m lo v e d
o n e s — f a m ily m e m b e r s , f r ie n d s o r c a r e g iv e r s — to c o m -
p le te s tr a n g e r s . H e r e a r e p r a c tic a l tip s o n h o w to p r o te c t
y o u r s e lf o r s o m e o n e e ls e :
R e m e m b e r th e r e d f la g s o f a f r a u d . S o m e o f th e c la s s ic
w a r n in g s ig n s in c lu d e :
• A n u n s o lic ite d p h o n e c a ll, e - m a il o r o th e r r e q u e s t th a t
y o u p a y a la rg e a m o u n t o f m o n e y b e f o r e r e c e iv in g th e
g o o d s o r s e r v ic e s ;
• A n u n e x p e c te d e - m a il o r c a ll r e q u e s tin g y o u r b a n k
a c c o u n t n u m b e r, p e r h a p s o n e a s k in g y o u f o r th e in f o r m a -
tio n p r in te d a t th e b o tto m o f o n e o f y o u r c h e c k s ;
• A n o ff e r th a t s e e m s to o g o o d to b e tr u e , lik e a n in v e s t-
m e n t “ g u a r a n t e e i n g ” a r e t u r n t h a t ’s w a y a b o v e t h e
c o m p e titio n ;
• S o m e o n e e x p r e s s in g a n e w o r u n u s u a l in te r e s t in y o u r
f in a n c e s ;
• P r e s s u r e to s e n d f u n d s q u ic k ly b y w ir e ; o r
• T h e o th e r p a r ty in s is ts o n s e c r e c y.
R e s e a r c h a n e w f in a n c ia l a d v is o r b e f o r e in v e s tin g m o n e y
o r p a y in g f o r s e r v ic e s . T h o u g h th e v a s t m a jo r ity o f b r o k e r s ,
f in a n c ia l p la n n e r s a n d o th e r p r o f e s s io n a ls a r e h o n e s t a n d
r e p u ta b le , s o m e c o m m it f r a u d . B e f o r e c o m m ittin g to w o r k -
in g w ith a f in a n c ia l a d v is o r, c o n f ir m th a t h e o r s h e is
p r o p e r ly r e g is te r e d o r lic e n s e d a n d h a s a c le a n r e c o r d . F o r
a d d itio n a l g u id a n c e o n c h o o s in g a n a d v is o r, s e e F o r S e n -
io r s : 1 5 Q u ic k T ip s f o r P r o te c tin g Y o u r F in a n c e s .
B e c a r e f u l w h o y o u g iv e th e le g a l a u th o r ity to a c c e s s o r
m a n a g e y o u r m o n e y. O n e w a y o ld e r a d u lts p r e p a r e f o r th e
p o s s ib le f u tu r e n e e d to h a v e s o m e o n e e ls e m a k e f in a n c ia l
d e c is io n s a n d tr a n s a c t b u s in e s s f o r th e m is b y h a v in g a le g a l
d o c u m e n t c a lle d a p o w e r o f a tto r n e y ( P O A ) . A n a tto r n e y
c a n h e lp y o u d e c id e th e r ig h t ty p e o f P O A f o r y o u r n e e d s .
“ O n ly g iv e P O A a u th o r ity to s o m e o n e y o u tr u s t a n d w h o
u n d e r s ta n d s y o u r w is h e s a n d p r e f e r e n c e s ,” s u g g e s te d L u k e
W . R e y n o ld s , C h ie f o f th e F D I C ’s O u tr e a c h a n d P r o g r a m
D e v e lo p m e n t S e c tio n . “ A ls o c o n s id e r a d d in g o v e r s ig h t,
s u c h a s b y r e q u ir in g tw o p e o p le y o u tr u s t to a g r e e o n d e c i-
s io n s w ith in a r e a s o n a b le tim e f r a m e o r h a v in g a th ir d p a r ty
r e v ie w tr a n s a c tio n s th a t h a v e b e e n m a d e .”
I f y o u d e c id e to u s e a P O A , c o n ta c t y o u r b a n k a n d o th e r
f in a n c ia l in s titu tio n s to c o n f ir m th e y w ill a c c e p t th e d o c u -
m e n t y o u p la n to u s e . T h e y m a y h a v e th e ir o w n f o r m a n d
r e q u ir e th a t c u s to m e r s u s e th a t. F o r m o r e in f o r m a tio n a b o u t
P O A s , s e e F o r S e n io r s : 1 5 Q u ic k T ip s f o r P r o te c tin g Y o u r
F in a n c e s .
P r o te c t y o u r p e r s o n a l in f o r m a tio n . N e v e r p r o v id e S o c ia l
S e c u r ity n u m b e r s , b a n k a c c o u n t in f o r m a tio n , P I N s , p a s s -
w o r d s a n d o th e r s e n s itiv e in f o r m a tio n in r e s p o n s e to a n
u n s o lic ite d c a ll, f a x , le tte r, e - m a il o r te x t m e s s a g e , n o m a t-
te r h o w g e n u in e th e s itu a tio n m a y a p p e a r.
S ig n u p f o r d ir e c t d e p o s it. “ D ir e c t d e p o s it in to y o u r b a n k
a c c o u n t is th e f a s te s t a n d s a f e s t w a y to r e c e iv e m o n e y o r
o th e r p a y m e n ts , s u c h a s y o u r p e n s io n o r a n in c o m e ta x
r e f u n d ,” R e y n o ld s s a id . F o r m o r e a b o u t d ir e c t d e p o s it,
s e e F o r S e n io rs : 1 5 Q u ic k T ip s fo r P ro te c tin g Yo u r
F in a n c e s .
N o tin g a r e c e n t s c a m th a t h a s r e s u lte d in th e f ts o f b e n e f it
p a y m e n ts , R e y n o ld s a d d e d , “ C h e c k to m a k e s u r e th e f u ll
d e p o s it y o u a r e e n title d to a r r iv e s in y o u r b a n k a c c o u n t
w h e n y o u e x p e c t it. A n u n e x p e c te d le tte r f r o m th e S o c ia l
S e c u r ity A d m in is tr a tio n o r a n o th e r a g e n c y in d ic a tin g y o u r
d ir e c t d e p o s it in f o r m a tio n h a s b e e n c h a n g e d is a s ig n o f
f r a u d , a n d y o u s h o u ld in d e p e n d e n tly lo o k u p th a t o rg a n iz a -
tio n ’s c o n ta c t in f o r m a tio n a n d n o tif y it im m e d ia te ly.”
C lo s e ly
m o n ito r
c re d it
card
b ills
and
bank
s ta te m e n ts . L o o k a t y o u r s ta te m e n ts a s s o o n a s th e y a r r iv e
a n d r e p o r t u n a u th o r iz e d p u r c h a s e s , w ith d r a w a ls o r a n y th in g
s u s p ic io u s , r e g a r d le s s o f h o w s m a ll o r la rg e th e d o lla r
a m o u n t.
I m m e d ia te ly r e p o r t a f r a u d o r th e f t to s o m e o n e y o u tr u s t
a s w e ll a s th e p r o p e r a u th o r itie s . M a n y o ld e r p e o p le m a k e
th e m is ta k e o f n o t te llin g lo v e d o n e s o r n o t c o n ta c tin g th e
p o lic e o r o th e r la w e n f o r c e m e n t a g e n c ie s w h e n th e y ’ v e
b e e n v ic tim iz e d . P e r h a p s s o m e a r e e m b a r r a s s e d to a d m it
th a t th e y w e r e “ m is le d ” a n d lo s t m o n e y. O th e r s h a v e f e a r s
A
o f lo s in g th e ir in d e p e n d e n c e . “ A s d iff ic u lt a s th is m a y b e ,
r e p o r tin g th e in c id e n t is th e o n ly o p p o r tu n ity y o u h a v e to
r e c o v e r s o m e o r a ll o f y o u r lo s s ,” s u g g e s te d I r m a M a tia s , a n
F D I C C o m m u n ity A ff a ir s S p e c ia lis t. “ B y te llin g y o u r s to r y
y o u a ls o c o u ld p r e v e n t th e p e r p e tr a to r s f r o m ta k in g a d v a n -
A classic warning sign is an
unsolicited phone call, e-mail
or other request that you pay a
large amount of money
before receiving the goods or
services
ta g e o f o th e r s .”
L e a r n m o r e a b o u t c o m m o n f r a u d s a n d h o w to r e s p o n d to
th e m . F o r e x a m p le , r e a d in th is is s u e a b o u t te le p h o n e s c a m s
ta rg e tin g s e n io r s ( s e e T ip s f o r S e n io r s W a n tin g to H e lp R e l-
a tiv e s ) . Y o u a ls o c a n s e a r c h in b a c k is s u e s o f F D I C
C o n s u m e r N e w s a t w w w .fd ic .g o v /c o n s u m e rn e w s fo r
n u m e r o u s a r tic le s o n a v o id in g d iff e r e n t k in d s o f f r a u d .
A m o n g th e m is a n a r tic le o n e ld e r f r a u d in o u r W in te r
2 0 1 1 /2 0 1 2 is s u e :
w w w .f d ic .g o v /c o n s u m e r s /c o n s u m e r /n e w s /c n w in 1 1 1 2 /e ld
e r f r a u d .h tm l.
I n J u n e o f 2 0 1 3 , th e F D I C a n d th e C o n s u m e r F in a n c ia l
P r o te c tio n B u r e a u ( C F P B ) jo in tly la u n c h e d “ M o n e y S m a r t
f o r O ld e r A d u lts ,” a f in a n c ia l e d u c a tio n to o l o n h o w to p r e -
v e n t a n d r e s p o n d to e ld e r f in a n c ia l e x p lo ita tio n . T o r e a d o r
p r in t tip s f r o m a c o n s u m e r- o r ie n te d g u id e in th is n e w
r e s o u r c e , p le a s e v is it th e C F P B W e b s ite a t h ttp ://f ile s .c o n -
s u m e r f in a n c e .g o v /f /2 0 1 3 0 6 _ c f p b _ m s o a - p a r tic ip a n t- g u id e .
p d f.
Yo u a ls o c a n fin d tip s fo r s e n io rs fro m th e F B I
a t w w w .f b i .g o v / s c a m s - s a f e t y / f r a u d / s e n i o r s a n d g e n e r a l
in f o r m a tio n f r o m th e F e d e r a l T r a d e C o m m is s io n o n m a n y
s c a m s , in c lu d in g p h o n e f r a u d , a t:
w w w .c o n s u m e r.f tc .g o v /s c a m - a le r ts .
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