Business academic warns elderly to avoid fraudsters

Older residents in the community face an increased risk of being targeted by fraudsters, according to a USQ academic.

Speaking at the Toowoomba Probus Club recently, School of Accounting, Economics and Finance Head Professor Peter Best said it was important to raise awareness of the growing threat of fraud in Australia, the vulnerability of the elderly and proactive ways to guard against it.

'Fraud costs the Australian economy billions of dollars each year, and the incidence and cost is increasing’, Professor Best said.

According to the Australian Bureau of Statistics, 14% of Australians are aged 65 years or more. However, this group seem to be targeted disproportionately by fraudsters.

'Fraud may be committed by strangers, but also by family and carers,” Professor Best said. “Strangers engage in promoting prizes and sweepstakes, investment schemes, donations to fake charities, home repair scams, funeral expense schemes, and fake health remedies.

'People often have great difficulty in distinguishing scams from genuine products. Family and carers may borrow or take elders’ money, valuables or property, deny medical care to conserve funds, skim pensions, raid bank accounts and misuse Power of Attorney.'

Professor Best said the elderly were often targeted because they were perceived as having financial resources, at home during the day and vulnerable to telephone and face-to-face marketing.

'Also, they may seek opportunities to improve their financial position and are less likely to report cases to the Police,” he said. “There are well-documented warning signs for friends and family to detect elders falling victim to fraud schemes.'

Sources of assistance in avoiding such schemes include websites such as http://www.scamwatch.gov.au/ and developing awareness and reporting incidents (such as the Elder Abuse Prevention Unit - http://www.eapu.com.au/).