How to Protect Your Senior Parents from Financial Fraud

Fraudsters often target seniors because they assume seniors have a stack of savings in the bank, a higher level of trust, more time to answer phone calls and emails, and limited digital savviness.

Regardless of how accurate this actually is, it’s true that older adults are popular targets for cyber criminals. In fact, according to the Government of Canada,  fraud is the leading crime against seniors in Canada.

To help protect your parents and other seniors in your life from being defrauded, stay informed about the latest financial fraud tactics targeting seniors and assist them with taking important security measures.

Here are four ways you can help protect your senior parents from fraud

1. Talk to them about cyber fraud

Cyber fraud against seniors is not only very common but also highly underreported, as many seniors are embarrassed to have been defrauded by scammers. Talking to them about cybercrime and making them feel safe and comfortable coming to you can go a long way.

Here are some important things to emphasize:

• They can turn to you with questions if something feels off (e.g., they receive a strange email or phone call).

• Fraudsters are extremely clever and create scams that are very convincing – they are often personal, relevant, and sentimental.

• If they do get scammed, you’re there for support. Providing patience and understanding will make you their go-to for help in case of issues. 

2. Share resources and articles

Cyber scams are continuously evolving and there are new scams – or variations of old scams – cropping up all the time. Talking through red flags and how to protect against scams make a meaningful difference in keeping your parents’ finances and information safe. 

To help keep the people you care about up to date about the latest threats, share RBC’s Cyber Security Hub – it’s a comprehensive resource of articles and videos that is consistently refreshed with the current scams and security tips. Check it regularly and share updates with your parents so they are up to speed. Our Cybersecurity Checklist for Seniors is another excellent resource to help keep them safe and informed.

3. Help them set up security measures

There are several ways your parents can build up their defenses against cyber fraud. Here are some measures you can help set up for them:

• Strong passwords: Passwords are the first line of defense against fraudsters, but many people have less-than-ideal password behaviour. From having simple passwords (such as “password”) to using the same passwords for every site, many online users leave themselves open to hacking. Strong passwords are important – and while they can feel like a pain to set up, they are invaluable in keeping information safe. Take a look at Why Strong Passwords Matter and How to Create Them, and share the tips with your parents.

• Multi-factor authentication: Multi-factor authentication (MFA), also known as two-step verification or two-factor authentication (2FA), makes it harder for cyber criminals to steal information because it uses two separate factors for identification. One is typically a username and password, while the other could be a message to a cellphone. While some apps and websites use MFA automatically, some leave the decision up to the user. 

• Face ID and fingerprint features: Like with MFA, these biometric features add an extra layer of security that helps keep data secure.

• Alerts: There are several types of alerts that send a notification if there is out-of-the-ordinary activity on an account. For instance, a fraud alert will send a notification by text message if there’s an unusual Interac e-Transfer transaction made or if a credit card transaction appears out of place. Your parents can also opt into transaction alerts, which send a notification if, for instance, an account balance drops below a certain set threshold, or a large purchase is made on a credit card.

  Signing up for alerts is an excellent way for your parents to stay on top of their money and activity within their financial accounts. 

• Set up Autodeposit for e-Transfers: This service eliminates the need for a security question and answer in every transaction, reducing the risk that someone unintended could intercept the funds.

4. Follow them on social media

Social media isn’t just for the younger generation. More and more older adults, including seniors aged 65 and older, are active on social platforms. According to research, more than 43% of seniors were active on social media last year, including Facebook, X (formerly Twitter), and Instagram. 

As many scams are executed through social media, it might be worth friending or following your parents on the platforms they use. This way, you could spot any suspicious people in their network, take note of scams that pop up in your own feed, and caution them about oversharing. For instance, posting sensitive information such as their phone number and address can give scammers easy access to them. Even details such as their pet’s name and grandchildren’s birthdays are details that could be used to guess passwords and steal vital information. And if they’re posting pics of themselves on vacation, you can warn them that this signals to criminals their house may be empty.

Things your bank would never ask you

As fraud attempts grow increasingly sophisticated, scammers often impersonate trusted financial institutions into sharing personal information or moving money. Knowing what your bank will never ask you to do is one of the most powerful ways to stop fraud before it starts.

RBC will never ask you to:

• Initiate any type of transaction on RBC’s behalf.

• Provide one-time codes sent through SMS, emails, or voicemail to identify yourself over the phone or in person.

• Download a remote access application.

• Disclose your PIN.

• e-Transfer money for any reason.

• Perform any digital 2FA for outbound calls, including One Time Passcode, ID verification, or PIN verification. 

• Create a new online banking password with the Advisor or ask to share your password with anyone.

While seniors are common targets, they don’t have to be easy victims of financial fraud. If you’re there to offer support and guidance, your parents will have a much better chance of spotting fraud, avoiding scams, and keeping their finances and their information safe.