Elderly Financial Exploitation (EFE) is continuing to see a rise in case reports. According to AARP, victims over age 60 lose $28.3 billion annually in the United States. To put this in context, if you could save $100,000 every single day, it would take you over 775 years to save $28.3 billion dollars.

Protecting seniors from falling victim to financial exploitation in our communities is vitally important. Building awareness of this issue is one of the first steps we can take. Whether you fall into the category of someone 60 years or older or have a loved one in that age range, speaking out about it can help reduce an individual’s susceptibility.

The first EFE scam we addressed was the “grandparent” scam. Next, we will address the lottery and sweepstakes scam.

What is the Lottery and Sweepstakes Scam?

You receive a phone call saying you won a sweepstakes, lottery, or a prize like a new phone or car. To claim your winnings, you are asked to send some money to cover the taxes, shipping, or handling fees for this limited time offer. Instead of quickly rushing to make the payment, you should stop and think about the warning flags of the request.

How do criminals commit lottery and sweepstakes scams?

Criminals use a few tactics to convince the unsuspecting elderly into sending money.

1. Sense of urgency. By telling the person answering the phone to “act quickly before the limited time offer expires,” the criminal is trying to convince the individual to send money before thinking about the reality of the situation. Scammers often impose a response deadline of 24 hours to apply this sense of pressure.
2. Realistic sweepstakes name. Criminals create realistic sweepstakes names, or even pretend to be from well-known companies, to make their scheme sound more plausible. If you are unsure of the organization’s credibility, look up the real company’s contact information yourself and contact them directly. No legitimate sweepstakes will ever ask you to send them money.
3. “Don’t tell anyone yet.” Because the criminals are attempting to commit a financial scam, they may pressure you to not tell anyone. Instead, you should discuss these “winnings” with a trusted friend or family member to determine its credibility.

How to avoid losing money in a lottery and sweepstakes scam

As a rule of thumb, always be cautious of phone calls claiming you have won a prize. Follow these other tips to protect your money from falling into the wrong hands.

• Do you remember entering a sweepstakes or contest? If not, the “winnings” are a scam.
• If you are urged to act quickly to claim a limited time prize, take a moment to consider the facts. The offer may not be true.
• Scammers will tell you to pay in a specific way, often through a wire transfer.

Reporting EFE

If you believe you or someone you know has fallen victim to elder fraud, contact your local law enforcement or branch of the National Adult Protective Services Association. Yohttps://www.westbankstrong.com/blog/has-elderly-financial-exploitation-taken-placeu may also file a report with the FBI.

One way these criminals continue to find success in these schemes is by the lack of reporting. While it may feel embarrassing to admit that you have been scammed, reporting the fraud may help track down the criminal or make others more aware of the fraud tactics.