Helping Mr. Dell: How To Protect Seniors Against Scams
Every year, thousands of seniors fall victim to scams, resulting in a staggering loss of over $40 billion annually. Despite the widespread awareness of this issue, scammers continue to get away with their deceptive schemes. So, how can we protect our loved ones from being targets for these scams? To help shed some light on this issue, let’s explore the fictional story of Mr. Dell, a senior who navigates a situation based on true events.
The Scam: Conning Mr. Dell
The bank teller looked up at Mr. Dell, her brow furrowed.
“You want $15,000. In cash?”
Mr. Dell nodded and smiled nervously.
“May I ask what this is for, Mr. Dell?”, she asked.
“Well,” he said, “my house is having some work done, and um the contractor’s waiting. I’m late on payment and I told him I’d get it…”. He trailed off and smiled weakly at the teller.
The teller gave him a long look. “OK, I’m going to just check with the manager. Please give me a moment.”
She hurried away.
As Mr. Dell watched her go, he felt shaky and his stomach turned over – his feet hurt from the walk. He had told the teller just what the man on the phone had instructed, that it would be fine and there was nothing to worry about. So, then why did she need the manager? It was his money and he could do what he wanted with it!
Finally, the teller came back with her supervisor and Mr. Dell went through the story again. He lied convincingly, even getting a little angry, before they finally gave him two thick stacks of money, totaling $12,000. He quickly stuffed them in his coat and walked out, not daring to look back.
As soon as he was on the street, he went a few doors over to the shipping store. Once inside, he carefully wrapped the money in a brown paper bag, just like the man on the phone had said to do. He took a label and wrote out the address – somewhere in New Mexico and handed it to the clerk to send cross country overnight.
He then walked back into the sunshine and felt relief. He had done it, without alerting anyone, and now he hoped they would leave him alone.
While our story’s subject, Mr. Dell is fictional, the unfortunate reality is that his situation is all too common. Mr. Dell fell victim to a sophisticated scam that evolved over a 6-hour phone conversation with a stranger (a.k.a. scammer).
The stranger skillfully manipulated Mr. Dell by instilling fear through veiled threats of exposing his personal information, evoking compassion by fabricating stories of desperate poverty and hunger within his community, and exploiting his overwhelming desire to safeguard himself from future scams. The manipulation left Mr. Dell feeling disoriented and desperate to make the phone call end, so he granted the caller unrestricted access to his computer, bank account, and other private details. He was coached on how to send money without raising suspicion in order to conceal the fraud. Mr. Dell never told his family nor did he seek help leaving the scammer ultimately successful and Mr. Dell in utter despair.
The Victim: Understanding Mr. Dell
While it may seem unbelievable that Mr. Dell was unaware of, or chose to ignore, the obvious red flags and didn’t just hang up the phone in the first place. It’s important to recognize that Mr. Dell, as an elderly individual close to 80, may in all reality not have known better. Many seniors become easy prey due to declining mental health, loneliness, or naivety.
Like with Mr. Dell, scammers prey on older people’s trust, need for connection, fear, and desire to protect themselves in order to get what they want - money. They then use guilt and shame to make sure the victim hides the truth from those who would help them. These professional criminals practice the art of fraud until it is well polished. Blaming Mr. Dell for falling for this deception is not practical as it takes another professional to protect him.
The Solution: Protecting Mr. Dell
Mr. Dell's family recently became aware of his struggles with memory loss and confusion, which have made once simple financial tasks difficult for him. They needed a professional who could not only oversee his finances but also comprehend the challenges that Mr. Dell and his family were facing. In this real-life story, they decided to hire the services of Everyday Money Management to help implement measures to mitigate the risk of fraud. Here are tips for steps to take before a fraud is perpetrated or after, in order to prevent a repeat performance by scammers.
Set Up Online Access and Review Often. Monitor activity through financial institutions' online portals. As spending patterns become familiar, unusual expenditures become obvious and can be investigated. Further, enlist the bank by meeting with a representative who can lay out options and products that may help protect from fraud.
Consolidate Accounts. Having fewer financial accounts (banks, accounts, and credit cards) enables quicker identification of fraud.
Limit Funds and Access. Protect from large unauthorized withdrawals by having only the monthly funds a person needs to live in the primary checking account. Any savings are placed into an investment accessed only by a financial advisor or similar responsible party.
Set Alerts. Set up an email or text notification from the bank to a trusted party if a withdrawal is higher than a set amount or unusual activity is detected.
Get Involved. There is no substitute for neighbors, family, and friends taking an interest. The more connected to a caring network a senior is, the more likely they are to take advice and to reach out when they are confused, worried, or feeling pressure.
Hire Professionals. Put in place a financial team. A Daily Money Manager will monitor, alert, and set up systems to protect from fraud. A Financial Advisor will hold reserve monies safely, help them grow, and help set up a monthly draw that feeds into a controlled household budget. A CPA can backstop and review spending overall and protect individuals from tax related issues. All of them provide an extra set of eyes.
Today, Mr. Dell and his family have found a newfound sense of security and control over their financial well-being. If you're interested in learning more or would like a complimentary consultation, please don't hesitate to reach out to Everyday Money Management. We're here to help you navigate your financial journey with expertise and care.