“HiGrandma,it’sme.Iaminabitofabindandneedyoutosendmemoneyimmediatelyplease.”

“Wearecontactingyoubecauseyouhave thesamenameas thedeceasedwhohadanoverseasinvestmentworth$1.1M,whichyounowstandtoinherit.Thereisaprocessingfeetoobtainyourmoneysopleasesendus$30,000toretrieveyourinheritance.”

“Weunderstandyourloveofanimalsandourshelterisindireneedoffundsorwewillshutdownnextmonth.”

“Hi,thisistechsupportandwenoticeyouhaveavirusonyourcomputer.Wecanfixitremotelyifyougiveusyourlogininformation.Andthecosttofixtheproblemis$500.”

“I’vebeentakingcareofmomforthreelongyearsandIshouldbegettingmorefromherwillandtrust.I’mgoingtohaveherchangeherwillandtrusttogivememoreinheritance.”

Eachyear,millionsofelderlyAmericansfallvictimtosometypeofelderfinancialabuse or elder identity theft, resulting in irreversible financial losses andsignificant psychological distress. Our elderly population is disproportionatelytargetedbyvarioustypesoffraudbecausetheyhavefinancialsavings,ownahomeandhavegoodcredit.Combinethesetangibleassetswiththefactmanyseniorsarewidowed,lonely,trusting,orofdiminishedmentalcapacity,andtheyquicklybecomeveryattractivetoscammers.Andsometimesthosescammersturnout tobepeople they know, like family or caregivers,who feel theyare“owed”moneyandtakeadvantageoftheirelders’finances.

Let’stakealookatthesescams,andseehowyoucanprotectyourself,yourfamily,andtheseniorsyoulove.

Investments

1.WidowSchemes

HowtoAvoidTheseElderFinancialAbuseScams

byShawnC.Winkler,Law&SteinLLP

ElderFinancialAbuseontheRise

As morbid as this sounds, these scammersconsistentlyreviewtheobituariestofindtheirnexttargetandunfortunately,wehaveclientswhohaveexperiencedthisfirsthand.

Fraudsterscanclaimtheyareadistantcontactofthe deceased spouse and the deceased owedthemmoney; or, in the case of our clients, theyclaim they are representing a financial institutionwhere the deceased had overseas investmentsandinordertoclaimthemoney,youneedtosendthemmoneytoreceivethefunds.

In the examples of our two separate clients, thesurviving spouses received a letter in the mail,claiming to be a financial institution from twodifferentoverseascountrieswherethedeceasedapparently had over $1M in profits from an oldinvestment. However, in order to retrieve themoney, the surviving spouse must send a largechunk of money to this overseas financialinstitution to pay the processing fee before theycaninheritthemoney.

Thankfully, bothof these clientswere suspiciousenough to have the fraudulent documentsreviewedby their friends,aswellas their trustedattorneysandfinancialadvisorstoprovetheirgutinstinct was correct, resulting in no loss of theirfinancialassets.

RomanceThese bottom of the barrel scammers alsoresearch local obituaries, then contact thesurviving spouse by phone or social media andrepresent themselves as either an oldacquaintance from school, church, the oldneighborhood, etc. They spend weeks or a fewmonthsbuildingarelationshipover thephoneoremail,and theneventuallyask formoney tohelpthemwithtravelormedicalissues.

2.TechSupport

Claimingtobetechsupportisapopularscamtoperformontheelderlyduetotheir lackofcomputersavvyinthedigitalage.AccordingtotheFederalTradeCommission, in2018,peopleage60andolderwerefivetimesmore likelytoreportlosingmoneythanyoungerpeopleintechsupportscams.Theymayalsobecalling toobtainpersonalandbanking information touse later for identitytheft.Fraudulenttechsupportcallscomeinvariousforms:

Theycall claiming theyhavedetectedavirus inyour computerandwillchargeyouafewhundreddollarsto“removethevirus”.You receive an email, text or on-screen message claiming you havecomputerissuesandtheyneedtoaccessyourcomputerremotelytofixthe problem. In doing so, they request your passwords and otherpersonalinformationtocommitidentitytheft;orinstallmalwaretosecretlyaccessmorepersonalandfinancialinformationfortheirpersonalfinancialgain.

3.FamilyCaregiverWhencaregivers are involved in elder care, bothphysical and financial, oftentimes problems arise when it comes to money. Family members andindependentcaregivershavebeenknowntoengageinelderfinancialabuse,claimingtheyare“owed”moneybecausetheyareprovidingchallengingcareforthatseniorindividual.

Elderfinancialabuseisdefinedasessentiallyanyunauthorizedorimproperactofan individualthatusestheresourcesofanolder individual formonetaryorpersonalbenefit,profit,orgain,orthatresultsindeprivinganolderindividualofrightful access to, or use of, benefits, resources, belongings or assets. Asdisheartening as it is, this often occurswhen a familymember or seeminglytrusted friend or caregiver is given fiduciary responsibility over a senior’sfinances,andthatfiduciaryactsinthebestinterestsofthemselves,ratherthanthebestinterestsofthetrusting,elderlyindividual.

4.Grandchildren

Inanotherheartbreakingtypeofelderfinancialabuse,athiefwillcallanolderpersonpretendingtobetheirgrandchildinneedofhelp.Theyhaveextractedenoughdetailsaboutthegrandchildfromtheinternet,suchashisorhername,cityandschool,toweavetogetherabelievablestory.Theconartistmayalsocall lateatnightor in themiddleof thenight, startling theseniorawakeandsoundingfranticbecausetheyareintroubleandneedmoneyquickly.Becausetheseniorishalfawake,itmaybetoughtodiscernthevoiceontheotherendisnottheirtruegrandchild.

5.Charity,Fundraising,Lottery

Charity scams and fundraising scams tend to be more common (andsuccessful) during, or following, major events, such as natural disasters(hurricanes, earthquakes), health crises (Covid-19/Coronavirus), or politicalmovementsorelections.Theywillmakecontactviaphone,email,textormailandbecausepeopletendtobemoregivingduringthesetimes,theyaremorelikelytohandovertheirmoney.Criminalsalsoposeasofficialsfromaforeignlotteryorsweepstakes,claimingyoucanretrieveyourwinningsafteryoupaya“fee”.

6. Government Entity (IRS Scams & Social SecurityScams)

Weallknowtaxesmustbepaideveryyearandbecausefilingtaxreturnscanbea somewhat complicatedprocess, hearing that youmayhavemadeanerrorandowemoneymaynot comeasa surprise.Which iswhy this is apopularscamforcriminalstoperformontheelderly.

ThecallerpretendstobefromtheIRSandstatesthatyouhaveataxdebtthatisowedandmustbepaidimmediatelytoavoidpenaltiesorarrest.CriminalsalsopretendtobeaSocialSecuritystaffer,claimingthereisaproblemwith your account because of suspected illegal activity and you are owed a

cost-of-livingincrease.

Inboththesecases,thecallerwillpressureyoutoprovidepersonalinformation,bankingdetails,orsendmoneytoavoidmonetarypenaltiesorthreatenarrest.Butwhattheyarereallyafterisyourmoneyorpersonalinformationtocommitidentitytheftanddrainyourfinances.

Oftentimesseniorsareembarrassedtoadmittheyhavebeenscammedwhichisunderstandable,butthere are some signals which can assist you inspotting financial troubles either for yourself orsomeoneyouknow.ImpacttoYou

YouhaveunexplainedchargesonyourcreditcardYougetanalertfromyourbankaboutsomeuncommonactivityofpurchasesthatarenotwithinyourusualmonthlypurchasesYourcreditreporthasbeenimpactedwithanegativescore

ImpacttoSomeoneYouKnowIfyouaremanaginganelder’sfinances,alsotakenoteofthesignslistedaboveComplaints they aremissingmoney. If theyareofdiminishedmentalcapacity,theymaynotknowtheyhavebeenscammed.Achangeintheirspendinghabitsandsayingtheymaynotbeabletoaffordsomething.A change in the scamming caregiver’sspending habits, where they may bespendingmorethanusual.

SignsofElderFinancialAbuse

Nevergivemoneyoryourpersonalinformationtoaninstitutionorpersonyou have not heard of or you do not know and trust. Ask a trustedfinancial advisor or attorney to review the document or email. Thereshouldbenoreasontosendanyonemoneybasedsolelyonaletteroremailrequest.Createa “safetynet”withinyour trust toensure that if youbecomeofdiminishedcapacityasyouage,oneofyourchildrenoratrustedadvisormustsignoffonexpendituresaboveacertainamounttoavoidsendingthatmoneytoascammer.Be wary of anyone requesting immediate money. Typically, scammerscreateasenseofurgency,sayingthisneedstohappen immediatelyoryouwon’t receive the inheritance/winnings, or additional feeswill apply.Askthe“grandchild”personalquestions.Withtechsupportscams,haveatrustedfriend,familymemberorofficialcomputer tech take a look at your computer to determine if there is avirus.Orifyouhavenothadanyproblemswithyourcomputer,morethanlikely it is a scam and you should immediately delete the email, textmessage, pop-up screen or say no thank you to the scammer on thephoneandhangup.Ifyouhaveanewlydevelopedromanticrelationshiporfriendshipandyour“newfriend”asksformoney,tellthemitisyourlong-establishedpolicytonot mix money with personal relationships. If they suddenly becomedistant, itmaysting,butknowyoudid theright thing foryour finances,andyourheart,inthelongrun.Only donate to causes, relief efforts and political campaigns through awell-known and trusted entity. Research them online, ask your friendsaboutthemandneverdonatemoneyoverthephoneorviaemailtoan

HowtoAvoidtheScam

unknownentity.

We have extensive experience in working withthosewhohaveexperiencedelderfinancialabuse.Invoking a power of attorney and setting up arevocable trust to protect assets of significantvalue are excellent ways to protect yourself or alovedone.Ifyoufeelyouareavictimofelderfinancialabuseor know someone who may be, our litigationattorneys take themost empathetic approach tounderstandingyoursituationandthentenaciouslyadvocate on your behalf to protect your financialassetsandgiveyouandyourfamilypeaceofmind.

EmpatheticApproach

Wecontinue towork fornewandexistingclientsduringCOVID-19(coronavirus)whileplacingsafetyand health as a priority. We are happy toaccommodate your needs, including Facetime,SKYPE and ZOOM for virtual, face-to-faceconnections. Contact us directly to speak withsomeonewhocanhelpansweryourquestions.T(949)501-4800Orsendusaprivateemailatthelinkbelowandwewillrespondpromptly:info@lawandsteinllp.comVisit our website for more information and toreviewourpartnerandattorneybios:www.LawandSteinllp.com

The Law & Stein Newsletter is a monthlypublication to share useful information with ourclientsinmattersofestateplanning,taxplanning,inheritancedisputelitigation,elderabuse,probateandbusinesslitigation,andpremisesandproductliabilitydefense.

Welookforwardtoservingyou&wishyouthebest

LAW&STEINLLP2601MainStreet,Suite1200Irvine,CA92614info@lawandsteinllp.com