Senior Financial Abuse

Senior Financial Abuse

Financial abuse affects many seniors in Canada. Because of this, seniors, family members, friends, and caregivers should be aware of tips to keep seniors’ finances safe and out of the hands of fraudsters.

For information about senior financial abuse consult the resources below.

• Common frauds
• Red flags for seniors
• Red flags for family members and caregivers
• Preventative steps for seniors
• Prevention steps for family members and caregivers
• Reporting a fraud

 

 

Common frauds

Here are some common financial frauds that target seniors:
 

Celebrity and public figure impostor scams

Celebrity and public figure impostor scams involve scammers pretending to be a well-known celebrity or public figure to trick people into giving them money or personal information. These scams can include fake websites and news articles of celebrities and public figures endorsing a certain investment platform (usually crypto currency).
 

Gift card scam

A fraudster contacts you, claiming to be from the Canada Revenue Agency (CRA) and threatens that you owe money. The fraudster will say that you can pay with pre-paid credit cards or gift cards (from retailers such as Amazon or iTunes). The CRA does not operate in this manner so do not send these gift cards.
 

Grandparent scam

A fraudster calls and pretends to be a grandchild and asks the senior to wire money to resolve an unexpected or emergency financial problem. If the money is wired, it is not traceable and the money will never be seen again.
 

Investment seminars

These fraudulent seminars often sound “too good to be true” and promote specific investments or tax breaks. After paying money for the seminar, you may find that the information provided is not appropriate and risky. The fraudster uses high pressure sales tactics to get you to invest on the spot.
 

Offshore investment scam

This scam promises huge profits if money is sent “off shore” to another country, usually as a way to avoid or lower your taxes. Money may be impossible to track down once it is sent off shore and is in someone else’s control. If the promised tax savings are not legitimate the investor could end up owing the government money in back taxes, interest and penalties. In addition, when money moves to another country, it is no longer protected by Canadian law.
 

RRSP scams

These scams are often promoted in newspaper ads as “RRSP loans," which let you take advantage of a "loophole" in tax laws to access your locked-in RRSP funds. In reality, the promoter encourages you to use your RRSP holdings to purchase stock in a start-up company. In return, he or she "promises" to loan you 60-70% of the value of the investment. The stock is often worthless, you often get no funds from the loan they promise, and you may end up paying tax on the money you withdrew from your RRSP, even though you do not actually have it.
 

Subscription/free trial scam

You receive an offer for a free trial but need to enter credit card information in order to receive the offer. Later, you will notice you have been charged monthly fees. Make sure to read over the fine print thoroughly as you might have inadvertently agreed to pay for a monthly subscription.
 

Sweepstakes and lottery scams

You have been told you have won a lottery or sweepstakes and need to respond to the sender immediately with money or your credit card information to “claim your prize”. Any money given will likely never be seen again and there will be no prize.
 

Websites offering “Big Returns”

Fraudsters will set up highly sophisticated investing websites promising big returns for a small investment. They also issue press releases that make false claims about their investment’s performance. These websites are usually fictitious and if you invest, your money will be gone.

Visit the Common Scams and Fraud page for more information.

 

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Red flags for seniors

• A new friend, relative, or caregiver suggests they take control of your finances.
• “Prize offers” without engaging or enrolling with the business offering the prize.
• Requests from a stranger or someone you know asking you to send them money or requesting to send you money.
• Too good to be true offers.
• Requests to keep information secret.
• Requests to access to your computer.
• Requests for your banking information (PIN, credit card number, or the three-digit security code on the back of the card)
• Requests for your personal information (birthday, social insurance number, or driver’s license number).

 

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Red flags for family members and caregivers

 

• A senior starts talking about a new “friend” and their helpful financial advice.
• A new friend, relative, or caregiver starts conducting financial transactions on behalf of the senior without proper authorization or through an unexpected power of attorney.
• The senior expresses excitement over a financial windfall or prize cheque.
• Sudden appearance of uninvolved family members or friends claiming rights to the senior’s possessions.
• Noticeable changes in banking habits, such as NSF (non-sufficient funds) activity or inconsistent transactions.
• They withdraw large sums of money from their bank accounts.
• Suspicious signatures on cheques.
• Change in signing authority on accounts.
• Behavioral changes such as depression, fear and/or memory loss.
• Reluctance to talk about financial matters.
• Isolation from family members and friends.
• Missing appointments to go over finances.

 

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Preventative steps for seniors

• Do not let family members or caregivers pressure you into making financial decisions.
• Do not provide personal or banking information to someone unless you have verified their identity.
• Never send money to a stranger and never accept money from a stranger.
• If someone contacts you asking for money and claims to be someone you know, do not give them the money until you verify their identity and the situation.
• Be suspicious of free products or gimmicks.
• Ignore spam emails or calls.
• Do not allow unknown or unverified individuals to remotely access your computer.
• Do not download email attachments from people you don’t know. They could be trying to gain access to your computer.
• Add anti-virus software to your computer.
• Get independent legal advice before signing contracts or agreements involving your bank accounts, property or purchasing of investments.
• Before making financial decisions, talk to your registered financial professional.
• Set up a Trusted Contact Person (TCP) with your registered financial advisor as a resource to assist in protecting your financial interests or assets when responding to possible circumstances of financial exploitation or concerns about a client’s mental capacity.
• If appointing a power of attorney, make sure it is with someone you trust and consult a lawyer.
• Before investing with a person or company, always confirm that they are registered in Saskatchewan to sell or advise about securities or derivatives. To check registration, visit The Canadian Securities Administrators’ National Registration Search at aretheyregistered.ca.

 

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Preventative steps for family members and caregivers

• Tell them not to give out personal or banking information if someone emails, texts or calls asking for it.
• Make sure antivirus software is installed and up to date on their computer.
• Tell them to not reply to sweepstake offers and unsolicited mail.
• Stay actively involved in their day-to-day life and ask what happened during their day.
• Tell them to call you or someone they trust before they make a financial decision.

 

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Reporting a fraud

If a senior has faced financial exploitation or if fraud has occurred, contact local police, the Canadian Anti-Fraud Centre and the Securities Division of the FCAA at 306-787-5645 or fcaa@gov.sk.ca.