How to recognize and protect seniors from scams and financial abuse
Financial abuse is the most common form of abuse against seniors in Canada. Here's how you can protect yourself and your loved ones.
Updated 
7 min. read
As a Customer Advocacy Consultant, Cameron helps some of BMO’s most vulnerable customers navigate challenging banking experiences.
"A few years ago, an elderly customer walked into a BMO branch and asked to wire funds to her new boyfriend's account in the U.S. This wasn't the first of these wire transfers, and although the request seemed harmless at first, the branch manager had her suspicions," recalls Cameron.
The customer showed signs of hesitation, and her requests weren't consistent with her previous banking patterns, which alerted the branch manager to the possibility of fraud. After looking into the customer’s account activity and asking a few questions, the branch manager was able to connect the dots. She noticed a change in the customer’s spending behaviour that started around the time she met her boyfriend. The manager suspected that this customer might be being scammed into sending large sums of money to her new partner.
In the end, BMO conducted a thorough investigation and was able to confirm the manager's suspicions and stop any further money transfers. BMO then collaborated with community support organizations and the local authorities to protect this customer going forward.
Scammers look for vulnerability and find it in older people
"The customer was living in a long-term care home and had no family around her. If it weren't for the bank nipping the client's unusual activity in the bud, she would've probably lost her entire life savings,” explains Cameron. “Her isolation and vulnerability made her an easy target for a criminal looking for their next victim."
This type of abuse is more common than it seems. Almost 20 to 40 percent of elder abuse cases in Canada involve financial exploitation, leading to a total of $20 million lost in scams against seniors every year.
What does the financial abuse of seniors look like?
Financial abuse of senior citizens usually involves someone using an older person’s money, property, or assets under false pretenses. While the scammer can be a total stranger, in many cases, it’s someone the senior knows, or has recently befriended them, like a partner, family member, friend, neighbour, or even a caregiver.
Seniors may fall victim to scams by complete strangers too. Grandparent scams, targeting seniors, are common — learn more about grandparent scams and how to avoid them.
Be wary of potential scams if someone is:
Pressuring the senior to give them money or access to their financial info;
Manipulating or forcing the senior into signing a cheque, contract or will;
Pressuring the senior into taking out a loan to "help them out";
Encouraging the senior to turn their personal bank account into a joint account;
Forging signatures on cheques or legal documents;
Not returning money they borrowed from the person and promised to give back;
Selling or transferring the seniors' property or assets without their consent.
The scammer will rely on their personal connection to the senior to get what they want, which makes signs of exploitation that much harder to spot because there’s so much grey area: Is it helping the senior manage their finances or is it just downright stealing? And even when financial abuse is detected, it often goes unreported. Only 1 in 44 cases of financial abuse against seniors is reported every year, mainly because people are too afraid or embarrassed to report it.
What are the warning signs?
It’s not easy to notice financial abuse while it’s happening, but there are warning signs you or your loved one should look out for:
A trusted person like a relative, partner or caregiver starts taking increased interest or involvement in the senior’s finances and assets.
- The senior’s bank statements show transfers or withdrawals they don’t remember making.
The senior starts failing to meet their financial obligations like paying off credit card debt or monthly bills.
- A sense that the senior doesn’t have a say in making financial decisions.
- The senior starts to spend less time with existing friends and family and spends too much time with a new “friend” or partner.
A sense that the senior is feeling intimidation or fear of a supposedly trustworthy person.
How you, or a senior you care about, can avoid financial abuse
- Handle your own finances if you’re able. You can use online or telephone banking if it’s too difficult for you to go out.
- Make sure you understand every document you sign. Don’t sign blank documents and don’t give your PIN or bank cards to anyone.
- Learn to say “no.” Don’t buy something you don’t want to buy or give money you don’t want to give – even if it’s to a family member.
- Set up direct deposit. You can choose to have your pension cheques and other sources of income directly deposited into your account, instead of getting them by mail.
- Set up automatic payments. You can set up automatic payments for your credit cards and monthly bills so that they’re one less thing to think about.
When planning for the future, consider a power of attorney for when you’re incapable of handling financial matters on your own. A power of attorney is a legal document that gives a person of your choice the authority to manage your finances and make decisions about your properties and assets on your behalf. Be sure to choose someone you know has your best interest at heart, whether it’s a relative, partner or close friend. You can also assign multiple people to your power of attorney.
If you can’t think of someone to appoint to your power of attorney, you can apply to have a professional representative through the Office of the Public Guardian and Trustee in your province.
Look out for grandparent scams
Grandparent scams take place when the victim, who is usually an older person, receives an unsolicited phone call from someone claiming to be their grandchild or a loved one in distress. Scammers may also identify themselves as a member of the criminal justice system, such as police officers, lawyers, bailiffs, or bail couriers. They falsely claim that the victim’s loved one is in police custody due to a specific incident and need funds for that person to be released. They may even send someone to the victim’s home to collect the money.
Grandparent scams warning signs:
Grandparent scams take place when the victim, who is usually an older person, receives an unsolicited phone call from someone claiming to be their grandchild or a loved one in distress. Scammers may also identify themselves as a member of the criminal justice system, such as police officers, lawyers, bailiffs, or bail couriers. They falsely claim that the victim’s loved one is in police custody due to a specific incident and need funds for that person to be released. They may even send someone to the victim’s home to collect the money.
- A request from an unsolicited source to help a loved one — usually with a tight deadline.
- An unexpected request from someone claiming to be a grandchild or family member (or someone assisting a family member) from an unfamiliar phone number or email address.
- The request is for funds via courier, gift card, wire service, or other form of payment that is unusual for the type of emergency. Bail, and payment for other similar high urgency charges, is never accepted in any of these forms.
How to protect yourself against grandparent scams:
- Don't trust unknown, unfamiliar callers. Even if a caller claims that someone you care about is in trouble, hang up. Take a moment to contact that person before engaging. If you cannot reach those you know, any incarceration can be confirmed by contacting the arresting police department.
- Think before you pay. Bail, and many other charges that come with high urgency, are never paid via courier, gift card, or wire service. If someone is asking you make a payment in one of these manners, stop to analyze if this is a scam before proceeding.
Education is key
BMO employees question suspicious requests and look for signs of abuse, but it starts with you. “Your bank is looking out for you, but it’s just as important that you look out for yourself,” says Cameron. Scams like this aren’t uncommon. While nobody wants to admit that someone they know and trust is capable of fraud, it does happen – and it’s not your fault. Be sure you know who to talk to in the unfortunate event you fall victim to abuse. It’s also a good idea to involve your bank in the conversation as soon as possible. Read our brochure Protecting Yourself from Scams to learn about current scams out there, and how to protect yourself from them and contact us if you have any questions, need clarification on your finances or want to report fraud.
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