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Financial Scam Awareness for Seniors in Charlotte

Financial scams targeting seniors have become a prevalent and pressing issue, particularly in cities like Charlotte. A sound understanding of these deceptive practices can be instrumental in safeguarding the elderly from significant financial harm.


How bad are senior financial scams? According to the FBI Internet Crime Complaint Center, there were 88,262 fraud complaints from seniors over 60 that resulted in $3.1 billion in losses. Senior financial fraud losses were also 82.35% higher than they were in 2021.


This article explores the common types of financial scams, how they target seniors, and useful strategies to identify and avoid falling prey to such awful manipulation.


In This Insight


How to Recognize Financial Scams

Financial scams are simple in principle but can be disguised so well that seniors have no clue what's happening to them until it's already too late. These scams range from simple schemes that solicit a small amount of money to complex deceptive strategies involving investment and insurance.


Notably, scammers often prey on seniors who might be less technologically savvy, more trusting, less 'quick on their feet,' or all of the above -- making them an easy target for manipulative financial engineering. Identifying the hallmarks of a financial scam targeting a senior is the first step to prevention. Scammers often insist on speed and secrecy, inciting panic to push their victims into making impulsive decisions that circumvent any chances of consulting with others.


Scammers often approach their victims with lucrative offers that seem too good to be true, promising huge returns for little-to-no risk. An understanding of these telltale signs can prove invaluable in recognizing and avoiding financial scams. In addition to recognizing hallmarks of scams, it's critical to understand the common channels scammers use to reach their targets. Often, these deceptive tricks are enacted via emails, phone calls, social networks, or even face-to-face interactions.


Scammers make usually impersonate reputable organizations, even sometimes family members, to gain a person’s trust and consequently their financial resources. Hence, seniors should be cautious of unsolicited communications and always verify the source before engaging in any financial interaction.


Understanding the hallmarks and common delivery channels of financial scams aids in the recognition and avoidance of fraudulent activities.

Common Forms of Financial Scams Aimed at Seniors

Certain fraudulent schemes intentionally target the senior population due to their perceived vulnerability. One such scam is the "grandparent scam." Fraudsters posing as a grandchild or another family member claim they are in trouble and require immediate financial help. The scammer often insists that the senior doesn't tell anyone else, causing confusion and removing the chance for others to identify it as a scam. A second common scam is the lottery or sweepstakes scam. In these cases, a fraudulent caller tells the senior that they have won a large sum of money or a valuable prize. However, they assert that to claim this prize or cash, the senior must first dispatch a smaller amount to cover processing fees or taxes. The FBI has identified this scam as one frequently deployed against older adults. Investment fraud is another prevalent scam aimed towards retirees. These scams often come in the form of Ponzi schemes or unregistered securities. By promising incredibly high and quick returns, fraudsters can persuade gullible seniors to invest their life savings. But before they know it, the scammer disappears, leaving the hapless senior without any money to fall back on at all.


Senior individuals are often targeted in fraudulent schemes such as the "grandparent scam", lottery fraud, or investment scams, each designed to exploit their perceived vulnerability for financial gain.

Helping Seniors Avoid Financial Scams

As much as we would all love to take responsibility for our senior family members and monitor their inboxes for them, the first step to true security from financial scams as a senior is learning to recognize the red flags themselves.


Improved information literacy, especially in today's digital age, helps seniors have more discerning interactions with unsolicited communications, including emails, phone calls, and mail. Common scenarios include lottery or sweepstakes winnings, calls from impostors pretending to be relatives in distress, and the infamous "IRS back taxes" scam.


No matter the type of scam, common warning signs are a) the demand for immediate payment, often with the use of pressure or bully tactics, b) inciting fear or panic with alarming scenarios, and c) requesting sensitive information, such as social security numbers and bank account details. Tech interventions can also be a great line of defense against scammers. Setting up alerts for bank accounts and credit cards can help seniors track their money and quickly identify unauthorized transactions. Installing reputable security software on computers and mobile devices can prevent cyber threats.


It’s also important to add one’s number to the National Do Not Call Registry to reduce unsolicited calls. Remember that keeping software and systems up to date with the latest security patches can thwart many common cyber threats. Seniors must understand that their personal data is valuable to scammers. They should not divulge information in unsolicited telephone calls, emails, or texts. Regularly monitoring credit reports can also aid in early detection of identity theft. They should always question the need to share personal data, especially when dealing with unsolicited communications.


Remind seniors that just because someone knows a few personal details – that does not make them legitimate.


Recognizing red flags and implementing proactive measures such as alert setups, software updates, and personal information literacy are pivotal in protecting seniors from financial scams.

Local Charlotte Support for Scam Victims

The city of Charlotte offers compelling support for financial scam victims, particularly seniors. Multiple organizations and charities work tirelessly to offer assistance to those ensnared by fraudulent schemes, including CMPD, the Senior Center of Charlotte, and Mecklenburg County Community Support Services.


These groups holistically address the issue by providing guidance on recovery and prevention, as well as mental support services to mitigate the emotional trauma associated with financial scams. One of the keystone services in Charlotte is the CMPD's Financial Crimes Unit. This specialized sector of local law enforcement works to bring perpetrators to justice by educating seniors about common scams, and what to do when they occur. They investigate complaints, working diligently to identify and apprehend fraudsters.


Importantly, they also collaborate with other local organizations to provide a comprehensive support network for victims. Mecklenburg County Community Support Services and the Senior Center of Charlotte, on the other hand, focus on the emotional wellbeing of the victims. They offer counseling services that can help alleviate the stress and fear that often accompanies the aftermath of a scam, along with advice on building resilience against future scams.


Through education, therapy, and community outreach, these organizations foster a supportive environment aimed at reducing the occurrences of financial scams and the subsequent impact on the senior members of the Charlotte community.


Charlotte boasts a comprehensive support network for victims of financial scams, encompassing everything from education and investigation to emotional resilience guidance.

Protection Laws and Regulations for Charlotte Seniors

The state of North Carolina, including the city of Charlotte, has several policies in place to protect seniors from financial scams. These statutes are designed with the understanding that the elderly population is frequently targeted by unscrupulous individuals and companies.


As an example, North Carolina has stringent laws against elder financial exploitation, mandating stiff penalties for fraudsters, including jail time and heavy fines. This sets a deterrent for potential criminals, ensuring a safer environment for seniors. Another notable regulation is North Carolina's Identity Theft Protection Act. Identity theft is a common method of executing financial scams, particularly against seniors who might not be tech-savvy. This Act lays down comprehensive measures for safeguarding personal information and steps to mitigate the damage in the event of a data breach. It also outlines legal recourse for victims of identity fraud. Finally, the Adult Protective Services (APS) division of the North Carolina Department of Health and Human Services plays a significant role in guarding seniors against financial scams. APS is mandated to investigate allegations of elder financial abuse and provide necessary assistance to victims.


This includes coordinating with law enforcement and social service agencies, creating an extensive support network for elderly residents of Charlotte who may be vulnerable to such scams. The entities work together to ensure seniors are educated about potential scams to prevent exploitation and provide support resources should they fall victim to financial predators.


North Carolina employs strict regulations and support networks, such as the Adult Protective Services division and Identity Theft Protection Act, to guard seniors, specifically in Charlotte, from financial scams.

Schedule a Free Consultation with Selective

Maximizing the value of your wealth is a complex task that requires expertise across a variety of disciplines. Schedule a free consultation with an advisor that provides comprehensive wealth management, which includes financial planning, investment management, tax strategies, estate planning, and insurance services. Schedule a free consultation today.


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