Our inboxes are filled with tempting messages to “click here” for savings and frightening demands to “call now” to avoid financial ruin. It’s a dizzying array of mixed messaging that has only one purpose – to scam the individual receiving the message by phone or email. Protecting yourself and your aging loved one from senior financial abuse, whether online or in the home, starts with being aware and being involved.
Financial scams targeting seniors continue to devastate older adults, often leaving them unable to recoup their losses. In 2022, over 88,000 complaints resulted in $3.1 billion in losses for people aged 60 and older, highlighting the need for proactive elder fraud prevention. It is important to be aware of the scams that exist and take steps to protect yourself and your aging parents.
5 Ways to Protect from Financial Abuse
- Have a trustworthy POA
- Shred financial paperwork
- Lock up financial documents
- Review statements
- Know who comes into the house
1. Choose your Power of Attorney Wisely
When considering your options for Power of Attorney responsibilities, think about the most trustworthy people in your life. Your oldest child might seem like the expected choice, but what if your youngest is the most fiscally responsible? Now is not the time to worry about hurt feelings.
Older adults without children (or without responsible children) need to consider trusted friends, a responsible relative, or retain the services of an Elder Law Attorney to ensure financial protection. The individual chosen as Power of Attorney will have access to all areas of your life and will act on your behalf when you are no longer able. Take your time and choose wisely to reduce the risk of elder financial exploitation.
2. Invest in a shredder to protect yourself from financial abuse.
There is no reason to keep piles of papers with sensitive information in your home. Most accounts can be secured and password-protected online. For the adult child trying to protect an aging loved one at a distance, technology can be your friend.
Shred It and Forget It
Receipts
Bank statements
Credit card offers
If you must receive paper copies, scan them into a computer file and shred the originals. This applies to investment account statements, credit card statements, and bank statements. Don’t forget to shred credit card offers that come in the mail to prevent criminals from applying in your name — a common form of financial scams targeting seniors.
3. Keep important financial documents secure.
Most of us don’t use our checkbooks every day (or ever!), so it’s a good idea to keep all checks locked up. The same goes for any credit cards that aren’t used regularly. For the aging parent who insists on access to a debit or credit card, keep the available balance low and unlinked to accounts holding significant funds.
All financial and estate planning documents can be secured in the same place. However, always let your Power of Attorney know where they are and how to access them. Keep this information on a “need to know” basis to reduce the opportunity for elder financial abuse.
4. Take time to review bank and credit card statements regularly.
Incidental charges on bank and credit cards are getting out of hand. Streaming services, monthly banking fees, and other recurring charges can add up quickly. Watch for unusual activity or charges that cannot be attributed to legitimate purchases — a key step in senior fraud prevention.
For a nominal monthly fee, services like LifeLock can help protect your loved one’s financial and personal data. When setting up the account, ensure that the financial Power of Attorney has access. For an adult child living far away, having online access can offer extra peace of mind.
5. Be aware of people coming in and out of the home.
Unfortunately, family members are among the most likely perpetrators of financial exploitation of older adults. A family member can often get away with the abuse simply because the senior is unlikely to report it. If you have an aging parent who lives far away, a trusted Power of Attorney or case manager can regularly check in and look for warning signs
Signs of Financial Abuse
Forged signature on checks
Large bank withdrawals or transfers
Missing belongings or property
Rerouted checks or bank statements
New changes to a Will or Power of Attorney
Staying connected with aging loved ones is critical. A senior who is isolated from family and friends is far more likely to be targeted for elder financial scams. Through technology like Ring cameras or the personal touch of private duty caregivers, you can help ensure your aging parent is not alone.
How Can Financial Abuse Be Prevented?
One of the strongest deterrents to elder financial abuse is simply being aware. Know the people entering the home — service providers, repair technicians, and routine maintenance professionals. If you schedule a service call, have a trusted friend, family member, or caregiver present. Reducing isolation is one of the most effective ways to prevent financial scams aimed at seniors.
There are so many good people in the world, but unfortunately, cases involving senior financial exploitation continue to rise. Create a safer environment by involving people and resources that reduce isolation and increase opportunities for socialization — a proven deterrent.
You are Not Alone
With a strong village of senior service providers, older adults can find the help they need to age successfully. It is never too early to create a thoughtful aging plan that outlines how to protect financial, legal, and personal well-being. From estate planning to case management, find an Elder Law Attorney who can protect your legacy whether you have children near, far, or not at all.
There is no need to live in fear. Take the steps necessary to protect yourself and your loved ones. And, if you experience signs of exploitation, report it to a trusted family member, your Elder Law Attorney, or local authorities.
Florida Toll-Free Hotline: 1-866-9-NO-SCAM
Protecting legacies and developing relationships that last a lifetime are two reasons Elder Law Attorneys are one of the invaluable Resources We Love. Learn more about how they can help people of all ages develop aging plans and enter retirement with peace of mind in the Legal and Financial Section of our Blog.