When to Consult a Professional
While prevention is the best strategy, it’s important to know what to do if you suspect you or a loved one has become the victim of a scam. Taking swift, decisive action can help mitigate the damage and begin the process of recovery. This is also the point where seeking professional guidance is essential.
Immediate Steps to Take if You’ve Been Scammed
If you realize you’ve sent money or given personal information to a scammer, time is of the essence.
- Contact Your Financial Institutions. Call your bank and credit card companies immediately. Report the fraud and ask them to freeze your accounts or block any pending transactions. If you paid with a wire transfer, contact the wire transfer company. If you paid with a gift card, contact the company that issued the card. The sooner you report, the better the chance—though often slim—of recovering funds.
- Place a Fraud Alert or Credit Freeze. If you shared sensitive information like your Social Security number, you need to protect your credit. Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your file. A fraud alert makes it harder for someone to open new accounts in your name. For even stronger protection, consider a credit freeze, which locks your credit file so no one can access it.
- Report the Scam. This is a critical step. Knowing how to report phone scams and other fraud helps authorities track down criminals and warn others. The central place to report fraud is the Federal Trade Commission’s website at ReportFraud.ftc.gov. You should also file a report with your local police department. A police report can be essential for disputing fraudulent charges with your bank.
When to Consult an Elder Law Attorney
An elder law attorney specializes in the legal issues that affect older adults. While they can’t always recover lost funds, their expertise can be invaluable.
You might consider consulting an attorney if:
- You have experienced a significant financial loss and need to understand your legal options.
- You suspect the person responsible for the fraud is a caregiver, family member, or someone in a position of trust.
- You need help navigating the reporting process or dealing with financial institutions that are not being cooperative.
- You want to establish legal tools to protect your assets going forward, such as a durable power of attorney or a trust. These documents can designate a trusted person to manage your finances if you become unable to do so, providing an important layer of protection.
When to Consult a Financial Advisor
After the immediate crisis is addressed, you may be left feeling financially vulnerable. A trusted financial advisor can help you assess the damage and create a plan for the future.
A financial advisor can help you:
- Review your remaining assets and create a new, secure budget.
- Consolidate accounts to make them easier to monitor for fraudulent activity.
- Set up account alerts that notify you of any transactions.
- Develop a long-term financial plan to help you recover and maintain your independence.
For official information, consult government resources like USA.gov, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC).
For tax-related topics, refer to the IRS. For information on Social Security, visit the Social Security Administration.
