Erin Bui chats about the tragic Ed Faust Grandparent Scam story and gives a rundown of the most common scammer tricks, gives advice on how you can be a senior scam stopper, and learn about senior scam prevention in order to protect yourself and your senior loved one.
While we would like to believe the world is a good place, the reality is that there are many vile individuals that take advantage of the most vulnerable in society. They do not care how their actions affect others. These scammers pay no regard to what happens after they steal an elderly person’s trust and subsequently their wealth.
Grandparent Scam Story
I want to share a tragic story that I discovered recently:
Ed Faust, a 77- year old man from Texas, received a call from the Dominican Republic saying that if Ed did not follow their demands within forty minutes, his grandson, who he loved dearly, would be thrown in jail. Right away, he went to CVS and transferred $2000 iTunes gift cards to the scammer. After his quick action, he called his grandson to check up on him, and “realized that he been scammed.” He realizes how naive he was, his pride was bruised, and Ed “went into the backyard and killed himself.”
I share this story because while it is an extreme case, I want people to know the financial and the emotional damage that scammers create, and to warn seniors about what is going on daily and around the world. Please ensure your family and friends know these stories, so they can be prepared.
Here are some of the most common scams:
Grandparent Scam
Description:
A senior receives a phone call that their grandchild is in trouble and needs their help. These calls would usually come in the middle of night, waking the elder from sleep and are less prone to question it.
Senior Scam Prevention:
Hang up and call your grandchild if they need help, and then notify the police.
Sweepstakes and Lottery Scams
Description:
Seniors fall for this scheme very easily because many feel financially insecure. When they receive mail or a phone call that they have won or entered sweepstakes, the senior would get excited and be more prone to give up personal information. However, the person on the other line is fishing for information and there is no real prize or lottery.
Senior Scam Prevention:
Ignore the sweepstakes and lottery calls. Most importantly do not give out any personal information.
Family members should ensure their senior loved ones have enough money and insurance (i.e. annuities) to live, so that they don’t fall prey to these scams due to desperation.
IRS/Jury Duty Scam
Description:
A scammer can claim that they are the IRS or a court official, saying that you owe the IRS or that you missed jury duty, and that action would be taken, if you do not wire money or pay with credit card right now.
Senior Scam Prevention:
Don’t be scared right at that moment. Be calm and demand they send you proof and consult with your close family, friend or financial advisor. As I mentioned earlier, DO NOT give out any personal information such as credit card, bank account, or wire any money. Also, the IRS never calls you. They send letters.
Sweetheart Swindle
Description:
Isolation and loneliness are one of the biggest reasons that seniors are vulnerable. This causes thieves to prey on them. Elderly people usually get trapped with a friendly phone call or a conversation online. The scammer uses kind words, gives the senior a lot of attention, and the feeling that they are simply making a friend. However, these thieves have a different motive. Once they see if they have hooked in the senior’s trust, they will start to ask for money.
Senior Scam Prevention:
Seniors should try not to stay in the house all day, and connect with others in real life whether it’s in social groups or at their local community center.
If seniors do make a friend over the phone or online, and the scammer asks for money, listen to their reason for the money, and ask for a second opinion before any action is taken. Never wire any money.
In the case of the Ed Faust Grandparent Scam, the damage was already done but I feel that this story will wake people up to the severity and the prevalence of scammers, and we hope to increase awareness and share senior scam prevention tips. Faust’s daughter said that she shared her family story so that people would know and she “doesn’t want people dying for useless reasons.” RIP Ed Faust.
Erin Bui is the Mangus Finance Circles specialist based in Riverside, CA, focused on helping special needs and senior communities with financial education and awareness.