How to protect your loved ones from dementia scams : Internet Scambusters #1,125
Dementia sufferers are at greater risk than most of us from frauds and scams because they’re much more likely to be easily fooled.
And with the number of sufferers in the US – already standing at close to 7 million – set to double in the next 25 years, you need to know how best to protect them.
In this week’s issue, we list the most common scams targeting people with dementia and the actions you can take to help them avoid this growing danger.
Let's get started…
These Scams Threaten Millions of Dementia Victims
Scammers, from individual opportunists and organized gangs to caregivers and family members, are stealing millions of dollars from dementia victims every year. And with the number of sufferers predicted to rise sharply in the coming years, dementia scams are likely to soar.
Almost 7 million older Americans have dementia. The number is forecast to reach 13 million by 2050. Add in the number of over-60s with even a mild form of cognitive impairment and we could be looking at perhaps double that number of potential victims.
But if you have family members who have been struck down with the disease, there are several safeguarding actions you can put in place right now.
Most Common Scams Targeting Dementia Victims
Most of the scams that many of us may be susceptible to are particularly effective against dementia victims. These include:
Family distress calls – the so-called grandparent scam where an imposter pretends to be a relative or friend in desperate need of money that has to be wired to them.
Other imposters – like fake government department callers and utilities employees who are often after confidential information for identity theft. Or phony court/police officials threatening jail if the victim doesn’t pay a supposed fine.
Doorstep solicitors – smooth-talkers, dubious solar panel sellers in particular, who use high-pressure tactics to persuade victims to buy things they don’t want or need.
Overcharging – scammers, like fake driveway re-pavers and roof repairers, who recognize a target has dementia and grossly inflate prices for work of a poor quality or that may not ever be done. Sadly, there have even been cases where a store salesclerk spots the chance to rip off a victim.
Telemarketing scams – fraudsters persuade the victim to buy a product, donate to a fake charity, or provide personal information.
Dishonest carers – the very people you should be able to trust, such as in-home carers, care-home staff and, sadly, even relatives, who steal cash or valuables, or get victims to write checks for them. In a worst-case scenario, fraudsters have even been known to persuade victims to change their will in their favor.
Lottery scams – while most of us have wised up to those calls and messages announcing a lottery or sweepstakes win, dementia sufferers are much more likely to be tricked.
Protecting Dementia Suffers From Scams
“Victims of fraud who are 80 years and older lose an average of $39,200 every year,” says the Alzheimer’s Association. “Studies show that financial exploitation is the most common form of elder abuse. However, only a small fraction of these incidents are reported.”
Here are some of the actions you can take to cut the risk of a dementia sufferer being scammed.
- Talk to them, especially in the early days before their memory is seriously impaired. Try to agree to spending limits; sign up to receive automatic notifications from banks and card companies; set up autopay for regular bills instead of checks. Question them about supposed new friends - and check them out.
- Set up a new joint bank account with them and keep just a small amount of money in it.
- Look for signs of financial exploitation including unopened bills, unusual bills, utilities being shut off, and unexplained bank withdrawals. Monitor their credit records and financial accounts.
- Sign them up for the Do Not Call Registry. Also implement a call-block service and encourage the person not to answer calls from unknown numbers.
- Take financial power of attorney allowing you or a trusted person to make financial decisions for a sufferer. As a safety check, if someone else has power of attorney, arrange to monitor their activities. Also, consider setting up a revocable trust with a small number of concerned trustees.
- If they use the Internet, make sure they have up to date security software installed.
- Consider using the services of a reputable financial advisor and/or a geriatric care manager (GCM) - usually a licensed medical professional. For more on GCMs and other helpful information, see: Aging Life Care Association Home.
As a final reminder, you will be acting in the best interest of a dementia sufferer by thoroughly checking out and monitoring the activities of anyone else, including family and professionals, involved in their care.
What To Do If A Sufferer Has Been Scammed
By closely monitoring their activities and talking with them regularly about recent activities, you should be able to spot if they’ve fallen victims.
If so, or even if you just suspect they might have been scammed, alert law enforcement and follow any advice they give.
You can also place a credit freeze to prevent loans being taken out in their name.
Final Words
There are lots of online resources for dementia sufferers and those who care for and about them. Always do your research thoroughly to ensure the people you’re working with are trustworthy, and take legal advice for any additional powers you might need.
Also be alert for the two important warnings:
First, if an undiagnosed elderly person seems to easily and frequently fall for a scam, they could be showing early signs of dementia and you should seek medical advice.
Second, steer clear of advertised “cures” for dementia. As of this writing, they don’t exist, only medications that might slow down progression of the disease – and you should always consult a medical professional about these.
This Week’s Alerts
Multi-Factor Authentication: If ever you needed proof of how unsafe your passwords are, researchers using “brute force” attacks – trying every possible character combination – recently cracked 45% of 193 million passwords in 60 seconds, You absolutely must use a second verification code, known as multi-factor authentication (MFA). See Scambusters issue #637: How to Easily Enhance Your Password Security.
Millions refunded: The US Federal Trade Commission’s (FTC) newly published annual report show its lawsuits resulted in over $324 million in refunds to consumers in 2023. That’s one big reason why you should always report any money you’ve lost to scammers.
That's all for today -- we'll see you next week.