Safeguarding Seniors: Protecting Against Financial Scams

As a community bank deeply committed to the well-being of our customers, Southside Bank recognizes the importance of safeguarding seniors against financial scams. Unfortunately, elderly individuals are often targeted by fraudsters due to their perceived vulnerability, making it crucial to raise awareness and provide essential tips to prevent financial exploitation.

Financial scams targeting seniors come in various forms, such as fraudulent investment schemes, tech support impersonation, identity theft, unsolicited offers, and phishing scams. These scams can have devastating effects on seniors, jeopardizing their financial security. In 2023, over $3.4 Billion in losses were reported by Americans over 60 from fraudulent activity, and over $770 million of those losses was in technology and government impersonation scams alone (according to the FBI Internet Crime Report 2023).

It’s easy to think of these scams in terms of numbers, but real people can be affected by these losses. For example, a bank received a visit from an elderly customer last year who requested to withdraw over $30,000 from her checking account. The bank was suspicious of the request after they offered to send the funds by electronic means to the account she wanted to transfer the funds to. The customer claimed she would get additional information and walked out of the lobby nervously.

Bank personnel immediately contacted their internal fraud department for additional guidance and a call was placed to the customer’s joint owner and husband concerning the large cash withdrawal. Moments later, the customer and her husband walked into the branch and explained that while browsing their internet, they were shown an ad claiming that her computer was infected by a virus. She had contacted the phone number listed in the ad and believed she was talking with a tech support member. This “tech support” agent informed her that her banking accounts were also “hacked” and was told she would be receiving a call from her bank’s fraud department.

The customer did receive a call moments after speaking with the technician. However, it was an imposter posing as a bank representative who instructed her to go to her bank and withdraw all the cash from her bank account. She was asked to keep discretion and not mention any of the conversations she had with tech support or the fraud department since someone at the bank might be in on the purported “hack.”

Thanks to the due diligence of the bank, a $30,000 customer loss was avoided. While it may be hard to tell what is a fraud and what isn’t, there are several ways you can help prevent these scams:

1. Stay Informed: Keep abreast of the latest scams targeting seniors by regularly checking reputable sources such as the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) websites. Be aware of the tactics that scammers tend to use on seniors, like pressure tactics, where a sense of urgency is created, urging seniors to make quick decisions without proper consideration.
2. Verify Before Trusting: Before responding to any offers or requests, verify the legitimacy of the individual or organization contacting you. Use official contact information obtained from trusted sources to reach out and confirm the validity of the communication. Never pay for anything you have no memory of ordering, and if an offer sounds too good to be true, it probably is.
3. Guard Personal Information: Protect personal and financial information by shredding documents containing sensitive data and avoiding oversharing on social media platforms. Never share sensitive information such as Social Security numbers, bank account details, or passwords over the phone or online, especially in response to unsolicited requests.
4. Utilize Trusted Contacts: Seek advice from trusted family members, friends, or financial advisors before making significant financial decisions. There’s no need to be embarrassed about asking if something is legitimate. And as for in-person solicitors, never let a stranger in your house. Instead, ask them to leave their business card and say your spouse, child or lawyer will be in touch.
5. Monitor Accounts Regularly: Stay vigilant by regularly monitoring bank statements, credit reports, and online accounts for any suspicious activity. Report any unauthorized transactions or discrepancies to your bank immediately.

At Southside Bank, we prioritize the financial well-being and security of all our customers, including seniors. We are dedicated to providing educational resources, personalized support, and proactive measures to help seniors navigate the evolving landscape of financial scams.

By empowering seniors with knowledge and tools to recognize and prevent financial fraud, we aim to create a safer and more secure banking experience for our community.

If you or someone you know has been targeted by a financial scam, please don't hesitate to contact us at 877-639-3511 for assistance and support. Together, we can combat financial fraud.