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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Keep your finances safe from scammers

Wina Sturgeon Tribune News Service

There have been many headlines recently about financial fraud against seniors. It’s a hot topic. Unfortunately, many of the articles are too generic to be of much use. Some consist of statistics or stories of folks who have been scammed, without specific tips on what you can do to protect yourself.

For example, there are few mentions of the dangers of debit cards. Unlike regular credit cards, the debit variety links directly to your checking account, giving clever con artists access to your money. The banking blog Bankrate.com says, “One out of every five debit card holders in the U.S. has experienced fraud on their card in the last five years, according to a study by ACI Payment Systems and AiteGroup.”

To limit the vulnerability of a debit card, an obvious solution is to switch to a credit card, where stolen funds will be replaced. If that’s not an option, create a separate checking account for the debit card in which you keep very little money. If you need more funds, you can transfer money with a simple phone call during banking hours.

You may get an email claiming to be from your bank or credit union asking for your personal information. Even if the site seems to come from your financial institution, call to make sure it’s from them before responding or clicking on any link. It’s fairly easy to copy and paste a site so the email looks like the real thing. It’s an often successful form of phishing when seniors are targeted.

Some statistics about financial fraud against those 50 and older are frightening. For example, the Boston Herald article, “Online con artists love to scam seniors,” explained common ’romance’ frauds that prey upon the lonely. One of the more startling statistics was, “The Internet Crime Complaint Center, a joint project of the FBI and the National White Collar Crime Center, found that 29 percent of people targeted in such scams were women 50 or older, who accounted for more than 51 percent of all financial losses in romance scams.”

If anyone begins emailing you with growing affection, then suddenly describes some personal emergency where they need money, and asks you to ‘lend’ them some by wire, don’t fall for it. Don’t give them any of your financial information. Many middle aged women have allowed loneliness to overcome their common sense, and lost their life savings as a result. This also goes for men who fall for romance fraud.

An official at the Mountain America Credit Union suggests getting your statements online, rather than by mail, where they can be subject to mail theft. You can also set up alerts on your accounts where the financial institution will contact you immediately if a withdrawal from your account comes from out of town or out of the country.

Sign up for a program that disables any card with a simple phone call in case you lose or misplace your wallet or purse. It’s sometimes called ‘Card Manager,’ ‘Card Guard’ or ‘Freeze.’ If you lose your card or checkbook, this service will stop fraud instantly. Ask your bank or credit union about it.

The newest card fraud protection is the EMV chip that is being embedded into new credit and debit cards. It negotiates a code between the issuer of the card and the merchant where you use it so that no information is left behind for a scammer to use. Most debit and credit cards will soon be switching to this chip. Instead of swiping your card, you just slip it into a slot and withdraw it. This relatively new technology will be a big change in helping to prevent fraud. The chip cards are not foolproof, but they are a big improvement on keeping your information from being left behind after a purchase.

Finally, don’t just toss your unopened statements into a drawer or ignore your online statements. It just takes a few minutes to peruse your transactions and charges. If you don’t recognize a transaction, even if it’s only for a dollar or two, speak to the manager of your bank or credit union. A scammer will often try to rob you first with small amounts to see if you notice. If you don’t, larger amounts could follow.

I once was a victim of a fraudulent magazine subscription which was about five times the amount the subscription should have cost. When I called to get my money refunded, the scammers became insulting and belligerent, I assume they thought I would drop it.

Instead, I kept bugging them with frequent calls to refund the fraudulent charges, finally I threatened to report their scam to my state’s attorney’s office. I had no intention of giving up and I got my money returned.

My financial institution does the necessary work and research. Questioning and stopping financial fraud immediately can keep thieves out of your bank account. It’s a lot more frustrating to try to recover money once the funds and the person who took them are long gone.

Wina Sturgeon is an active 55+ based in Salt Lake City, who offers news on the science of anti-aging and staying youthful at adventuresportsweekly .com. She skates, bikes and lifts weights to stay in shape.