By Michael Busch
NORTHERN MICHIGAN – In an effort to educate seniors vulnerable to financial elder abuse, Prosecutor LaDonna Schulz gave a presentation at the Ogemaw County Commission on Aging on June 18.
Speaking to a large audience of 50 seniors, she explained why they are such a prime target.
“You are attractive to scammers because you usually have money – bank accounts, assets that people in their 20s would usually not have.”
To illustrate her point, Schultz presented data from a 2023 Federal Bureau of Investigation Elder Care Report that showed 101,068 complaints registered with the FBI from people over 60. Losses amounted to $3.4 billion. In comparison, 62,000 complaints were received from people aged 20-29 with losses of $360 million.
Schultz explained that the elderly are also an easy target because “they are less likely to report being scammed. Maybe they feel they’re embarrassed, or they are concerned relatives might take over their financial obligations or put a conservatorship on them.”
“Another reason seniors are reluctant to report the scam is their lack of information about the scammer needed to prosecute the case.”
Schultz described eight types of financial scams: dating and romance, investment, buying or selling, remote access of accounts and devices, fake charities, phishing, travel, prize and lotteries, and employment. These scams are frequently found on social media sites like Facebook and eBay or more directly through smartphone contact, e.g. texting, robocalls, and email.
Schultz focused on the more common and current scams. She discussed a phishing scam involving a fake email from Walmart that said her account would be closed if she did not supply information about the account.
“The email and website links look extremely real, but in reality, are AI generated,” she said. “The email or website will use the same logos, colors, and fonts.”
A new scam is related to unpaid road and bridge tolls and traffic tickets. An email or letter might state that the senior owes money and if they do not pay, they will be subject to fines or license suspension. In some cases, Ogemaw County residents have been receiving phone calls by someone claiming to be a police officer and asking for payment.
Schultz explained that Michigan courts are responsible for collections. The Michigan Secretary of State does not collect fines.
Romance scams, which take advantage of seniors and the recently widowed, are on the rise. Schultz gave statistics from the Federal Trade Commission from 2022 showing 70,000 consumers fell for romance scams with a median loss of $4,400.
During her talk, Schultz provided several red flags when encountering a scam, such as:
- Unsolicited emails or messages
- Messages with misspelling and bad grammar
- Requests for personal information about passwords, social security number, PIN number.
- If a potential friend or romance partner refuses to meet in person
- Request to move communications to WhatsApp or Telegram
- Offering free prizes or trips
- Offering investment advice
At the end of her talk, she gave suggestions about how to avoid future solicitations and ways of preventing seniors from being scammed.
One of the most important ways to prevent fraud is contacting the three national credit bureaus – Equifax, Experian, and TransUnion – to request a credit freeze and fraud alert on your account. Requests are free and easy to complete online.
Another means of protection is setting up recurring payments like utilities online and to stop using paper checks. Seniors who grew up using checks can be scammed by having the ink on the check removed with chemicals and new amounts written in.
Above all Schultz stressed ignoring unknown emails, phone calls, texts from people or organizations you do not know.
