Once again, this week we are continuing to focus on scams and schemes that seem to be targeted at Elderly Americans. Today we are going to look at Caregiver Fraud. Caregiver fraud targets the elderly by taking advantage of their want/need for companionship and trust. Caregiver fraud is when individuals pose as a trusted protector or care partner. This scam is not just a crime of opportunity; it is calculated, manipulative, and deeply personal. It isn’t until much later that the ulterior motives are made known. With this scheme the criminal seeks to establishes relationships, gain trust, and eventually end up fleecing as much money as possible before leaving the victim heartbroken and often times destitute. Let’s dive into this scam to learn how it works, what to look for, and how to keep yourself and loved ones safe.
Caregiver scams are especially heinous because they come from individuals who are physically present and trusted. Anyone who takes care of an elderly person can perpetrate one of these scams, it doesn’t necessarily have to start off as a stranger. Home health aides, neighbors, even family members that an elderly person trusts completely can take advantage of an established relationship to gain access to finances and personal belongings. These scammers exploit the victim’s dependence on them, sometimes stealing money or assets or withholding medications. Caregivers can manipulate an elderly person into signing over property or making them POA. The lines between care and control can be dangerously blurred, and Caregivers will sometimes isolate the victim from friends or family to maintain that control. Then the Caregiver has full access to bank accounts, medical records, and medications. They fully use this power to take anything they want from their victim. In most cases, the fear of retribution is too powerful to allow elderly victims to speak up.
There are several factors that contribute to the vulnerability of older adults and make them more susceptible to both of these types of scams:
- Social Isolation
- Cognitive Decline
- Accumulated Wealth
- Trusting Nature
- Technology Gap
The emotional toll from this scam can be devastating as the financial loss suffered. They leave deep scars with victims often feeling shame or embarrassment preventing them from reporting the crimes or seeking help. With these scams, deep relationships are formed and once they are finished an overwhelming feeling of grief can set in. Here are some red flags to look out for and tips to keep you safe:
- Any and all requests for money, especially in the form of wires, gift cards, or crypto
- Caregivers who discourage contact with others or who try to control finances
- Look for signs of exploitation such as unexplained withdrawals, sudden changes in financial situations, missing belongings, or changes in wills or Powers of attorney
- Set up some financial safeguards (Notify Me alerts, trusted authorized signers on accounts)
- Regularly review bank and credit card statements
- Never give out any sensitive information to someone you just met or don’t know
- Establish legal protections like POA with already known and trusted individuals
- Encourage open conversations with elderly people about relationships and finances
Caregiver scams are a growing threat to elderly Americans, feeding on vulnerability and trust. As a society, it is imperative that we recognize this scam for what it is, a form of elder abuse. By educating, fostering awareness, enhancing protections, and providing support we can help to ensure the care and safety of our elderly population and make sure that they are able to live out their golden years in safety and comfort.
