How much money is at risk if a family member falls prey to a financial scam? Many people don’t realize the significant financial toil that can occur from even minor scams. One of the best defenses for protecting loved ones is to learn more about these common rip-offs in advance.

Small Scale Financial Scams

There are two general scenarios for a financial scam. The first scam involves seemingly small transactions.  These can be missed since they may not raise concerns. For example, the victim might be convinced to donate money for a charity. Suddenly, an automatic monthly payment is activated without the donor’s knowledge or consent.  This rarely happens with trustworthy charitable organizations. But there are many swindlers who use a charity as a front to steal money from unknowing seniors.
Small scams are focused on a large number of transactions spread over time. A $5 or $19.95 transaction each month might not seem that significant. But, over months and years these costs add up. If you see small recurring transactions on a credit card statement, find out where the money is going.

Larger Financial Scams

Another type of scam is a one-time transaction with a bigger payout. The scammer might be offering a fake investment opportunity. This triggers the person to share retirement account information. Or, using fear tactics and deceit, the crook convinces the individual that they are paying money to help a family member who is in trouble.
These larger scams can be devastating to a person’s retirement fund. If the account is diminished or worse – drained, then the victim is stripped of the resources needed for their future.
It is imperative that family members be diligent in educating and monitoring their loved ones about the risk of scams. Establishing security measures, such as using credit cards that can detect fraudulent purchases, is one example of how to prevent a large or small cash transaction.

Preventing Scams and Financial Abuse

Don’t be caught off guard. Instead of delaying, implement a proactive plan soon to protect your family member. If you want to learn more, you are welcome to contact us anytime. Email or call 858-480-7551. Senior Safe and Sound.
This information is intended to inform the public at large about this important issue. It is not intended to serve as legal advice.