Estate Planning

Planning for Special Circumstances

Tips for Preventing Elder Fraud

by Rania Combs

A neighbor was at home with her young children when someone claiming to be an IRS agent called her.

He told her that she owed back taxes and demanded that she pay immediately over the phone. He told her an agent was en route to arrest her if she did not comply.

Sensing that something was amiss, she hung up the phone and called me in a panic. Does the IRS really collect payments on the phone? Would the IRS really arrest her? What should she do?

Hanging up was the best thing she did. The person who called her was a con artist, and she thankfully did not become a victim of his scam.

Senior Citizens are Susceptible to Fraud

Unfortunately, many people, especially senior citizens, do become victimized. Con artists target seniors, who may be isolated and lonely. Additionally, some seniors have declining cognitive ability, which makes them more vulnerable to fraud.

Often, con artists pose as government officials claiming that the victim owes money, like in my neighbor’s case.  They may also tell the victim he has won a lottery or sweepstakes and needs to send money or share bank account information to claim the winnings. Another tactic is to pose as a family member in trouble. For example, I recently received an email from my sister’s hacked account claiming that she took an unexpected trip to Ukraine and needed a loan because her credit card would not work.

The FCT collects and analyzes consumer report information through its Consumer Sentinel Network. In 2019, consumers over 60 years of age reported losses of almost $440,000 million due to fraud.

So how do you protect yourself and those you love?

Tips for Seniors to Protect Themselves

Below are some tips on how seniors can protect themselves from con artists:

  1. Opt out of robocalls and calls from telemarketers. Nomorobo blocks robocalls and calls from telemarketers. The service is free for customers with VoIP service. If you don’t have VoIP, you can also sign up for the National Do Not Call Registry to limit calls from telemarketers
  2. Opt out of mail solicitations through
  3. Before you hire any contractors to work on your home, do your research. Make sure they are licensed and bonded. Always get multiple estimates from reputable contractors before before choosing a contractor.
  4. Don’t hand over money to a financial advisor without first checking his or her credentials for regulatory actions, violations, or complaints. You can research your broker at
  5. For added security, arrange for your bank to send statements to a trusted person, like a family member, who doesn’t have access to your account. That way an extra set of eyes can check your account for suspicious activity.
  6. Talk to a lawyer about getting a durable power of attorney appointing someone you trust to handle your financial affairs if you become incapacitated.

Tips to Protect the Seniors in Your Life

There are also things you can do to protect the seniors you love:

  1. Visit them often and at unexpected times to check for signs of cognitive decline. Changes in hygiene or eating habits, forgetfulness, and stacks of unopened mail or unpaid bills could signal a problem.
  2. Check for warning signs of fraud, such as large withdrawals from bank accounts, numerous uncharacteristic smaller withdrawals, checks written to people you don’t know, changes in spending habits, or a close relationship with a much younger person who has become increasingly influential and for whom lavish gifts are purchased.
  3. Make sure your loved-one stays active and involved. Isolation and loneliness increase the chances that a senior citizen will become financially exploited.
  4. If the senior in your life exhibits signs of cognitive decline, set up a bank account for him or her with limited funds and a spending limit on the debit card. That way, if fraud occurs, the loss would be minimal.
  5. Monitor their bank and credit card statements for suspicious activity.
  6. Caution your loved-one to be wary of those who pressure them to make immediate decisions, request private information such as social security numbers, or demand cash up front. Advise them not to disclose personal information, such as names of family members, bank account information, and social security numbers over the phone. If someone claims to be from a particular government agency, that information should be verified. If someone claims a family member is in trouble, other family members should call to verify.
  7. Make sure your loved-one has a well-drafted power of attorney, which can avoid a guardianship or conservatorship if they lose capacity. If a power of attorney does not exist, it may be necessary in extreme cases to file for a guardianship or conservatorship.

Fraud is all around us but targets the most vulnerable among us. If you think you or someone you love has been a victim of fraud, take action immediately. To report fraud, contact the Consumer Financial Protection Bureau, the Financial Fraud Enforcement Task Force, or the Texas Attorney General’s Office.

This article was originally published on September 30, 2015, and updated on Feburary 23, 2021.

About Rania

Rania graduated magna cum laude from South Texas College of Law Houston and is the founder of Rania Combs Law, PLLC. She has been licensed to practice law since 1994 and enjoys helping clients in Texas and North Carolina create estate plans that give them peace of mind.

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