Transcript FINANCIAL EXPLOITATION WHO DO YOU TRUST? PRESENTED BY THE Post Office Box 1256 Columbia, TN 38401 931-380-2565 Fax: 931-380-2566 Email: [email protected].

FINANCIAL
EXPLOITATION
WHO DO YOU TRUST?
PRESENTED BY THE
Post Office Box 1256
Columbia, TN 38401
931-380-2565
Fax: 931-380-2566
Email: [email protected]
FACTS
Persons 60+ are the fastest
growing segment of the
population
Persons 50 + years own
about 70% of the total net
worth in the US
1 in 4 Seniors will be a
victim of a financial crime
TWO BASIC TYPES OF
FINANCIAL CRIMES
 FINANCIAL EXPLOITATION is
usually committed by family, friends, and
other relatives.
FRAUD is usually committed by strangers
and there are hundreds of types of frauds.
Types of Influence
• Three Concepts
–Mental Capacity
–Consent
–Undue Influence
Financial Exploitation
• Tennessee state law defines financial exploitation
as the improper use by a caretaker of funds, which
have been paid by a governmental agency to an
adult or to the caretaker for the use or care of the
adult.[10]
• However, outside of Tennessee, a more widely
accepted definition of financial exploitation is
misuse of any type of funds, property, or valuables
for personal advantage or profit, to the
disadvantage of the elder or disabled adult.
Indicators of Financial
Exploitation
• A recent acquaintance expresses an interest in finances,
promises to provide care, or ingratiates with the elder or
disabled adult.
• When a relative or caregiver
– has no visible means of support and is overly interested in the elder
or disabled adult's financial affairs.
– expresses concern over the cost of caring for the elder or disabled
adult, or is reluctant to spend money for needed medical treatment.
– isolates the elder or disabled adult, makes excuses when friends or
family call or visit, and does not give the elder or disabled adult
messages.
– gives implausible explanations about finances, and the
elder/disabled adult is unaware of or unable to explain the
arrangements made.
Indicators of Financial
Exploitation
• The utility and other bills are not being paid
• Checking account and credit card statements are sent to a
relative or caregiver and are not accessible to the elder or
disabled adult.
• At the bank, the elder or disabled adult is accompanied by
a relative or caregiver who refuses to let the elder or
disabled adult speak for him- or herself, and/or the elder or
disabled adult appears nervous or afraid of the person
accompanying him or her.
• The elder or disabled adult is concerned or confused about
missing funds.
Indicators of Financial
Exploitation
• There are suspicious signatures on the elder or disabled
adult's checks, or the elder or disabled adult signs checks
and another party fills in the payee and amount sections.
• There is an unusual amount of banking activity,
particularly just after joint accounts are set up or someone
new starts helping with the elder or disabled adult's
finances.
• A will, power of attorney, or other legal document is
drafted, but the elder or disabled adult does not understand
its implications.
Offender Characteristics
• Two Categories
– Those who take advantage of opportunities;
usually have low self-esteem, Abuse of
drugs/alcohol, and/or overwhelmed/stressed
– Those who target their victims; usually
establish power and control over victim and
then obtain complete control of their assets
Three general categories of
Offenders
• Adult children, grandchildren, and other
relatives
• Professional Caregivers- home health
• Close friends and others in a position of
trust
Reasons that Victims
Do Not Report
 Victims often do not report exploitation crimes to
the authorities because of many reasons:
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feel ashamed
fear of losing the service of the offender
fear of being placed in a nursing home
Unaware of the available resources and assistance
does not want to punish the offender
believe they are partially to blame
sometimes are unaware they are being victimized
Pseudo Bank Examiner Fraud
•
This type of fraud begins when someone calls your home, identifies himself as
a bank examiner, and says he needs your help to apprehend an employee,
usually a teller, suspected of theft. You are asked to withdraw a specified
amount of cash from your account. The caller says that a representative will
come to your home, pick up the money, and redeposit it in your account to test
the employee’s honesty. He explains that the deposit must be in cash so that
serial numbers on the bills can be checked. But once you give your money
over to the “examiner,” you never see it again.
•
Never turn large sums of cash over to anyone, especially a stranger. If you are
approached by a so-called bank examiner or bank representative, always call
your bank immediately to verify and alert them.
SOME TYPES OF FINANCIAL
EXPLOITATION
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GOVERNMENT FUNDS
JOINT BANKING ACCOUNTS
DEED/TITLE TRANSFERS
DURABLE/POWER OF ATTORNEY
LIVING TRUSTS/WILLS
Government Funds
• Senior is unable to remember financial
transactions or paperwork, and/or is concerned or
confused about missing funds
• Senior appears to be neglected or receiving
insufficient care and/or is not allowed to speak or
make own decisions
• An increase in withdrawals, banking activity and
branch visits
• An acquaintance appears too interested in the
senior’s finances
Joint Bank Accounts
• Bank statements are diverted to the offenders address
• Balances greatly decrease and/or start having returned
checks and overdraft charges during first few months of
being a “joint” account
• An increase in withdrawals, banking activity and branch
visits and/or large withdrawal or transfer from recent
opened joint accounts
• Victim is not allowed to speak or make own decisions
• A legal document is drafted, but the elder or disabled adult
does not understand its implications
Deed/Title transfers
• Victim signs the deed to his or her home
over to a person whom they have only
known a short time.
• Victim is forced, tricked, or coerced to part
with resources or to sign over property.
• A legal document is drafted, but the elder or
disabled adult does not understand its
implications.
Durable/Power of Attorney
• Victim appears to be neglected or receiving insufficient
care.
• Victim is not allowed to speak or make own decisions.
• The elder or disabled adult's placement, care, or
possessions are inconsistent with the size of his or her
estate.
• A power of attorney is drafted, but the elder or disabled
adult does not understand its implications.
• Victim is isolated and not allowed access to his or her
financial information.
DPOA
• T.C.A. 34-6-109. Powers of an attorney in fact.
An attorney in fact shall have same powers as the
principal and the application of such powers by
the attorney in fact shall be in the principals’ best
interest and on behalf of the principal. An
attorney in fact misuses his or her powers when
decisions or transactions are made that benefit the
attorney in fact and are to the detriment of the
elder or disabled adult or uses the power for
purposes other than what is intended.
Living Trusts & Wills
• Victim alters his or her will numerous
times, each time changing the
executor/beneficiary.
• A legal document is drafted, but the elder or
disabled adult does not understand its
implications.
PROTECT YOURSELF
FROM EXPLOITATION
 Be suspicious of repeated requests for money from
friends and relatives.
 Be very careful and seek an attorney’s advice
when selecting someone to appoint over your
property and finances or any other financial
agreements.
 Be suspicious of anyone offering to help you
manage your finances or to provide you long term
care in exchange for money, property or
companionship.
FRAUDS
• The act of obtaining possession or control of a
person’s assets through deceit, trickery, hoax, or
other deceptions with the intent of obstructing the
person’s access to said assets.
• Further, fraud involves swindling by deception,
trickery, or misrepresentation. Since there are
numerous forms of fraud, this guide will cover
some types which most commonly affect the
elderly and disabled.
INDICATORS OF A FRAUD
 A promise that you can win, make, or borrow
money easily.
 A demand that you act immediately or else miss
out on a great opportunity.
 A refusal to send you written information before
you agree to buy or donate.
 An attempt to scare you into buying something.
 An insistence that you wire money or have a
courier pick up your payment.
 A refusal to stop calling after you have asked not
to be called again.
Offender Characteristics
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Usually strangers
Identify a target/victim
Use manipulation, deceit, or other trickery
Plays on the emotions of the victims
SOME TYPES OF FRAUD
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TELEMARKETING & MAIL FRAUD
HOME & AUTO REPAIR FRAUD
INSURANCE FRAUD
INVESTMENT FRAUD
CHARITY FRAUD
IDENTITY THEFT
Telemarketing & Mail Fraud
• Victim receives numerous offers by mail of fake
contests, prizes, lotteries, chain letters, insurance
deals, land and advance free-selling swindles,
charity schemes, and promotions for fake health
cures.
• Victim receives numerous calls from marketers
offering to “fix” bad credit, get back stolen
money, or fantastically low prices on merchandise.
Fraudulent Telemarketers
•
Watch out for fraudulent telemarketers! They may start with a postcard promising cash
and prizes if you call an “800” or “900” number. If you do it, a friendly voice will ask
for your credit card number to “verify” your identity, then come the high-pressure
tactics to get you to buy merchandise with your credit card. Later, you may be billed
several times, or you may never receive the merchandise at all.
•
If you do receive the merchandise, it may not be what you expected or you may feel that
the price you paid was highly inflated. By that time, it is often difficult and time
consuming to return the item and receive credit.
•
To protect yourself, ask for written information on products or services offered before
you order them.
Fake Orders for Magazine
Subscriptions
• People selling magazine subscriptions may “offer” an extremely low
price which is only available if you pay with a credit card. Repeatedly,
terms like “verification,” “identification,” or “process” will be used to
try to get you to reveal your credit card number. Once you give it, the
con artist will use the number to place fake orders.
• Never give anyone your credit card number on the phone unless you
made the call to place an order or to make a donation. Do not make a
donation to an unknown charity. Check with the Better Business
Bureau to see if the organization complies with their standards.
Fake Contests
• Fake contests are a prevalent form of mail fraud. You get a notice
saying you have won a “free” trip, a TV, or even a car. To redeem your
prize, you should send “X” number of dollars or bring the money to a
certain place. In reality, prizes frequently do not exist, or if they do,
only a very small number of them will be awarded.
• Watch out for prizes that you have to pay for. Carefully examine any
letters that look official or urgent.
Home & Auto Repair Fraud
• Repair work not completed, or is substandard work that
needs correcting.
• Victim is approached with offers of home repair for a
discounted price.
• Victim is approached with offers to pave their driveway
for a small fee.
• Victim’s contract is written in very small, illegible print,
and the contractor’s name is not clearly visible.
• Victim is billed for repairs to their vehicle that were not
requested.
Home Repair
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This con game is spreading rapidly and will continue to do so as dwellings and
their owners both grow older.
Someone comes to the door and says there is a problem with your house —
roofing, siding, electrical, driveway, whatever. They offer to fix the problem
quickly at what seems like a reasonable cost. Once they have begun the work,
however, major problems suddenly turn up that will cost more than the
original estimate. Often the “experts” have created the damage themselves.
Before you let anyone work on your house, be sure to get several estimates for
the repair. Ask for references.
When buying from door-to-door salespeople, you have certain protections
under the Federal Trade Commission’s “cooling off” rule. This rule gives you
three business days to change your mind and to cancel any purchase of $25 or
more that you made from your home or anywhere other than the seller’s
normal place of business.
Insurance Fraud
• A victim with multiple unnecessary
insurance policies.
• Approached by a salesperson to buy
duplicate insurance policies.
• A victim pays on many insurance policies
and can not afford to pay for basic needs.
Investment Fraud
• Victim invests in the stock of a company
that does not exist.
• Victim purchases a CD, or Certificate of
Deposit, but the company in which the
person has invested is allowed to redeem it.
• Victim is denied a loan because of age or
fixed income status.
Investment Frauds
•
In areas with a high concentration of senior citizens, investment frauds are usually
carried out on a hit-and-run basis. These scams may involve the selling of coins, oil and
gas leases, precious metals, and gemstones. The caller will flatter you as a “smart
investor” who can recognize a good deal, then confide that if you sign up quickly you
can get in on a great “opportunity.” Remember these salespersons are professionals and
gifted at getting people to believe them.
•
Also, consider that there are fees in most legitimate investment markets for every
transaction—when you buy and when you sell. These fees can add up, especially if you
have given your permission to automatically negotiate if the market seems to be
changing. When someone calls with an investment opportunity, get the name, address,
and phone number of the company. Request references and written materials. Always
read carefully any forms before signing. Check with the Better Business Bureau, the
Bureau of Consumer Protection, or perhaps the securities dealer at your bank or
investment firm.
Charity Fraud
• Victim receives frequent calls or direct mail
requesting donations.
• Victim makes lots of payments to charities
that are not well known.
• Victim is having difficulty paying for
regular expenses, even though there has
been no change in income.
Funeral Chasers
•
In this situation, funeral chasers visit the family of a recently deceased person,
claiming that the decedent made a down payment on merchandise which is
scheduled for delivery the next day, but there’s a balance due. They mention
facts about the decedent designed to assure the family that the collector is
legitimate. However, such facts are easily found in obituary columns and
elsewhere. At times like these, family members may be easy to convince, and
the so-called balance due often is paid.
•
Try not to make quick decisions under emotional or stressful conditions. Take
time to think. Ask to see a receipt or order signed by the deceased.
Identity Theft
• Victim receives account statements from
unknown creditors.
• Victim’s credit report shows lines of credit
that the client was not aware existed.
Stolen Checks
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A major concern for the elderly is the theft of checks from mailboxes and mail
slots. Since the mail carrier delivers social security checks on the same day of
each month, these and other predictable, routine payments are easy prey for
theft. Stolen checks are easily turned into cash by thieves who know where to
go and what to do.
The Social Security Administration strongly encourages direct deposit of
checks. Seventy-five percent of those receiving social security benefits use
direct deposit.
If you have any regularly scheduled payments, you should seriously consider
direct deposit. Federal Reserve Banks and financial institutions process direct
deposit transactions electronically through a national automated system.
Contact your financial institution about payments that are eligible.
METHODS OF THE
OFFENDER
 Making the senior or disabled person dependent
on them for care and basic needs.
 Gaining a position of trust over the senior or
disabled person.
 Conning the senior or disabled person into
signing legal documents such as wills, powers of
attorney, banking account, etc..
 Telling the victim stories to get sympathy in
order to obtain either a loan or gift of cash.
 Taking out loans and credit cards in the
victim’s name.
PROTECT YOURSELF
FROM FRAUD
 Thoroughly examine, investigate, and verify any
documents you are asked to sign
 Do not allow strangers in your home for any
reason & do not deal with anyone who comes to
your home offering to do any type of home repair
work
 Report any suspicious incidents or persons to law
enforcement and other proper authorities
 Register yourself on the Do Not Call & Do Not
Mail Lists
Fraud & Financial Crimes
Activities
TOGETHER WE CAN
STOP THIS CROOK
 October Awareness
Month
 Free guide on “Financial
Crimes Against Our
Seniors”
 Free education at your
local Senior Citizen
Center
 Free education for bank
employees