Young people, like seniors, are all prone to being victims of fraud or phishing. Seniors can be a prime target for scammers due to their vulnerability criteria, which may include accumulated wealth, isolation, and cognitive decline in some cases. Learn more about fraudulent schemes and what to do to avoid them.
Vulnerability to Fraud
Vulnerability can take many forms. It would be fair to say that a person is vulnerable if circumstances or personal predispositions favor a reduction in physical, cognitive, or emotional faculties in an episodical, temporary, or permanent way. Naturally, a person with one or more vulnerability factors is more likely to be the target of fraud or phishing. While everyone should be aware of potential fraud attempts, seniors should exercise additional vigilance.
Types of Fraud Likely to Target Seniors
Trust Fraud
We are more likely to trust and be deceived by opportunities presented by our relatives than by complete strangers. This is why fraudsters often target social environments such as recreation centers, places of worship, or cultural groups. They can thus build bonds of trust and more easily deceive their victims.
Often, scammers will propose monetary investments, taking advantage of the close relationship they share with their targets to persuade them that the offer is exceptional and not to be missed. In such a context, it can be easy to be convinced that the opportunity is legitimate and must be kept confidential. In reality, scammers often target isolated individuals who have not taken rigorous precautions, as they are easier to deceive compared to those who have a strong support system. This type of shenanigans can take several forms: pyramid schemes, stock market investments, or the promise of a loan that would be multiplied.
Another trust-based scheme may be the commonly referred to as "grandparent fraud”. A person pretends to be a grandson who urgently needs money for security reasons such as a debt to dishonest people or to get out of detention. The grandparents panic and under pressure, end up sending the money, thinking they are doing a good deed. Fraudsters know how to be creative to bamboozle their victims, which is why it is important to remain vigilant in interactions with those around us.
Emotional Scam
Scammers are constantly innovating when it comes to fraud. One of the strategies increasingly practiced is the use of online communications and social media to recruit seniors looking for new romantic relationships or friendships. The scammers maintain a long-distance relationship for several weeks, even months, to create a feeling of complicity with their victims. After achieving their objective, scammers may request funds, often under the guise of facilitating a face-to-face meeting. Once the sums are disbursed, they disappear, with no way of being traced.
No one is immune to falling victim to this strategy, but individuals who are lonely or isolated may be at a higher risk. Using social networks or dating apps is not a bad thing in itself; just make sure to do so with caution and be aware of potential fraud attempts.
Financial Phishing
Phishing can manifest in various forms such as fraudulent phone calls, emails, or text messages that are designed to appear as though they are originating from legitimate entities such as well-known companies, government agencies, or trusted financial institutions. Even when the nature of the message may seem urgent, such as a hacked bank account, or a tempting offer such as a contest you have won, avoid following up if you are not sure of the origin of the message.
Often, the goal is to trick you into providing personal information like your social insurance number (SIN) or credit card number to then access your funds or your identity. If you’re under the impression that the origin of the message is valid, still carry out a second verification by contacting the company or the financial institution with the contact details that you already had before. When it comes to your finances, you can't be too careful.
Tips to Avoid Being a Victim of Fraud
No one wants to be the target of a scam. Fortunately, several healthy habits can limit the risk of becoming a victim.
Here are 8 everyday tips to stay ahead of scammers and their schemes.
- If you don't fully trust the person you're talking to, avoid sharing personal information with them.
- When it sounds "too good to be true", it probably is. When you are presented with a great and risk-free opportunity, it is important to be rigorous in your verifications to avoid being phished.
- When a salesperson offers you something that you absolutely must "accept now", there could be something wrong. Take the time to think about it and consult those around you before accepting.
- If an interesting offer is presented to you, do not hesitate to ask for additional documentation, which you can consult with a clear head. You will be more likely to detect potential fraud, if any.
- When it comes time to dispose of old bills and bank statements, be sure to destroy them, not just throw them away. These precautions will allow you to avoid information theft without your knowledge.
- Pay close attention to your monthly bank statements. Immediately report any anomalies or lost cards to your banking institution.
- Contacts by telephone, post, or on the internet that offer irresistible offers and that ask for your personal information to make you benefit from them are to be avoided. Often, they aim to harvest your information for malicious use later.
- Do not hesitate to be firm when you reject an offer that you consider fraudulent. You can also report it to the competent authorities.
What to Do if You Have Been the Victim of Financial Fraud?
It can be difficult to know who to turn to if you or someone close to you has been the victim of financial fraud. Here are some resources to help you along the way.
A first step would be to contact your neighborhood police, the Sûreté du Québec, or the Canadian Anti-Fraud Center. These resources have the necessary expertise to assist you throughout the process, whether you are trying to locate lost funds or filing a complaint.
If you come across circumstances that involve financial advisers or investment advisers, the Autorité des marchés financiers might be the right resource for you.
For situations that involve a product or service that you have purchased, the Office de la protection du consommateur could help you enforce your rights and obtain compensation in certain cases.
Whether out of guilt or a sense of shame, it has been shown that people who have been the victim of fraud often feel embarrassed to report it to the authorities. To ensure your safety, that of your loved ones and other potential victims, if you suspect that you have been the target of fraudulent actions, report them to the competent authorities in your area
Residence Life to Counter Vulnerability Factor
A fairly common method used by fraudsters to successfully extort funds from their victims is to create a bond of trust. Loneliness and physical and social changes can make seniors more vulnerable and thus facilitate this bond of trust with malicious people.
Living in a residence can counter loneliness by allowing you to join an active social life with professionals who have your physical, mental, and financial security at heart. Would you like to find out more about seniors’ residence life and its advantages? The Bonjour Résidences team is available to answer your questions. contact us at 1 844 918-1020 to speak to one of our advisors.