Stop Fraud Before It Starts

Hang up on Fraud

The phone is still the weapon of choice for most fraudsters. When you get a call from someone you don’t know who is trying to pressure you to hand over money or provide personal financial information, your response should be simple: Hang up on fraud!

Just Delete it

Don’t click on a link or open an attachment in an email unless you are absolutely certain who the sender is and the link or attachment is safe. Malicious links and attachments can secretly download software to steal information from your computer. To be better safe than sorry, call the sender and confirm that they actually sent you the email with the link or attachment.

Phone a Friend

If you are confused or concerned by a call, contact a trusted friend or a loved one as a reality check.

Monitor your accounts

Regularly monitor your online bank and credit card accounts. Consider making it a quick Saturday morning routine. Keep track of your transactions so that you can spot suspicious activity and report it immediately to your bank or credit card company.

Report Fraud

The Commerce Department cannot investigate fraud we do not know about. Every day you delay reporting is another day the con artist is spending your money and finding new victims. Contact local law enforcement or feel free to contact our Consumer Services Center at 651-539-1600 or 800-657-3602 (Greater Minnesota) or by email at consumer.protection.@state.mn.us.

Start the Conversation

Talk with family members who might be vulnerable to make sure they can spot the warning signs of a scam and what they should do if they think they have been targeted or victimized.

Don’t judge a book by its cover. Con artists can sound and look professional and make even the riskiest investment sound safe. You can identify unscrupulous sales people through these tactics:

• Fear tactics. Scammers exploit fears of a big economic downturn and will claim their product will provide financial protection. Don’t let fear distract you from making a sound decision.
• Act Now: Don’t fall for a sales pitch that creates a false sense of urgency. You should always take time to make an informed decision.
• Double your money: Avoid investments that are pitched as having no risk or offering unrealistic returns. If a deal sounds too good to be true, it probably is.

Trust but verify

Financial professionals often need to be registered or licensed to do business. You can check if they are licensed or registered using the License Lookup Tool on the Commerce Department website or if they have a history of disciplinary action at https://cards.commerce.state.mn.us . An internet search can also reveal information regarding complaints.

Stay in control

When investing, be wary of anyone who suggests putting your money in something you don’t understand or who urges you to leave everything in their hands. 

Do you and your parents know the red flags of a scam?

According to the Investor Protection Trust, one out of every five persons over the age of 65 has been victimized by a financial swindle. One recent study estimated that older Americans are defrauded out of nearly three billion dollars each year.

Be sure that your parents know how they can protect themselves from fraud. For example, they should avoid giving out personal information to strangers in response to texts, emails or calls, regardless of who they claim to be or where they claim to be calling from. Be alert for behaviors that may indicate your parent is a victim of financial exploitation, such as unpaid bills, an unexplained lack of money or the sudden appearance of a new “friend.”

What is the plan in case of cognitive issues or other health problems where your parents may not be able to take care of their own finances?  

Encourage your parent to officially ask someone to serve as their medical and financial proxy or power of attorney. It is best if your parent chooses someone who they trust to make their financial decisions. If possible, there should agreement within the family about who is being entrusted with these responsibilities. This person should also maintain clear communication with all family members. 

Where do your parents keep their accounts, records, insurance policies, and other important financial documents in case they are needed?  

If an elderly parent’s health suddenly deteriorates, out-of-pocket expenses can add up quickly. Discuss all sources of income and insurance coverage to determine how and if your parent might cover unanticipated medical treatment. If your parents agree, familiarize yourself with their insurance coverage and financial assets such as savings, pension plans, stocks, IRAs and 401K plans. Income, assets and insurance affect Medicaid eligibility and Medicare options. 

What are your parents’ wishes for their assets, estate, and future quality of life? 

Ask your parents whether they have created a will and where it is located. Know your parents’ views on end-of-life care as well, and make sure their preferences are recorded in an official document such as a living will or advanced health care directive long before they no longer are capable of expressing informed consent. 

Is your parent comfortable with the prospect of living in a nursing home, or does he or she have plans to move in with a family member or friend should special care be required? Be open and direct about your ability to honor these wishes. If your parents need nursing home care, it’s important to know if their monthly income meets state eligibility requirements for Medicaid.

For more resources, Minnesotans can contact the Senior LinkAge Line, a free service offered by the state that guides older adults and their families to community resources. The North American Securities Administrators Association’s Serve Our Seniors webpage offers also offers information for caregivers.

Family gatherings are a good opportunity to check in with family members and share how they can protect themselves from fraud. 

Avoid lecturing or scaring them into isolation. Remind them that everyone can be vulnerable to scams and they are not alone.

Tell them they should avoid giving out personal information to strangers in response to texts, emails or calls, regardless of who they claim to be or where they claim to be calling from. 

Be alert for behaviors that may indicate your parent is a victim of financial exploitation, such as unpaid bills, an unexplained lack of money or the sudden appearance of a new “friend.”

If you need help, here are 3 icebreakers to start talking about scams

1. So did you win the lottery yet? Using humor can help demonstrate the absurdity of winning a foreign lottery of a country they have never visited. This type of scams will induce the would-be victim to hand over tens of thousands of dollars to pay the “taxes” on the foreign lottery winnings.
2. Asking for a friend. Did you hear that scammers are calling people impersonating the IRS or the Sheriff’s office to get them to pay back taxes or to avoid arrest? Sharing can help create awareness so that your loved ones can recognize the warning signs of a potential fraud.
3. It happened to me! I received a call from someone pretending to be my son in jail in a foreign country. Sharing stories can help your loved one feel like they are not alone and it can happen to anyone.

Tell them that scammers use scare tactics online or over the phone get you to send money, provide personal information or gain access to your computer. If someone calls and wants you to hand over money, be very suspicious. Remember, if it sounds too good to be true, it probably is.