If you suspect your parent may be vulnerable to false offers -- even if they haven't been hooked yet -- take time to educate them, says Breyault. If Mom and Dad are Internet-savvy, direct them to the Federal Trade Commission's Web site where they can read up on the latest reported financial schemes. AARP also reports on senior fraud stories, as does the National Consumers League, or NCL.
You can also print out articles for the elderly about the latest senior scams. A few to watch for:
The Social Security rip-off
This recent scam involves ID thieves stealing personal information and contacting the Social Security Administration to change the payment routing information to the thieves' own bank accounts or prepaid debit cards.
What the senior should do: Be wary of any calls or emails requesting personal information. One ruse the thieves use: They tell the senior they need a bank account number so they can deposit big prize money in the account. The senior can take pre-emptive action by notifying the Social Security Administration to block all account changes not made in person at www.socialsecurity.gov/blockaccess. Seniors who suspect fraud can contact the SSA’s inspector general.
The grandparents scheme
The senior answers his phone and a young voice says, "Hey, Grandpa, it's your favorite grandson, and I'm in trouble." Senior says, "John, is that you?" The caller responds, yes, it's John -- he's calling from a friend's cell phone and he's been in an accident. He's out of state and needs his grandpa to wire some money right away.
What the senior should do: Check with family members to see if the grandchild is truly traveling. Never volunteer names to "grandkids" that don't immediately identify themselves, says Breyault. Chances are good that the caller will hang up if the elderly person challenges him.
The fake lottery/sweepstakes
This mail scam comes in two flavors: The "pay to play" scheme or the "You've won! Here's your check" scam. The first ploy entices seniors to buy inexpensive trinkets or magazine subscriptions (which they really do receive) in order to have their name entered in the contest. In the second case, the elderly person receives an authentic-looking check, with notification they've already won the Jamaican (or another foreign country) lottery.
What the senior should do: Shred both offers. It's illegal for companies to require you to buy anything to enter a sweepstakes. If they do, they're scammers, says Breyault. It's also illegal for Americans to enter a foreign country's lottery. These scams require the "winner" to wire back a share of their "winnings" (which will initially clear the bank but later prove counterfeit) for taxes or administrative fees.