As our population ages, protecting our elderly loved ones from financial exploitation and abuse has become increasingly important. Elder financial exploitation can take many shapes and forms, from deceptive scams to financial abuse from caregivers. In this brief legal guide, we will explore some of the most valuable strategies and practical tips to help protect seniors from financial exploitation.
Keeping your elderly loved ones aware regarding how to identify and ultimately prevent financial exploitations is a critical first step. Older adults can be particularly vulnerable due to their trusting natures or cognitive decline and isolation. Be sure to explain common scams and frauds that target seniors such as lottery and sweepstakes scams, fake charities, mobile scams and more. Moreover, teach them how to verify the identity of callers or email senders before sharing personal or financial information. By focusing on education and awareness, you can help empower older adults to enhance their overall financial security.
Be sure to regularly monitor financial accounts for suspicious activity. Make it a regular habit to review bank and credit card statements thoroughly each month and identify any errors such as duplicate charges, unauthorized charges or billing discrepancies. Verify the dates and locations of charges to ensure they align with your knowledge and activities. If you notice anything suspicious during your review, contact your bank or credit card company immediately.
Stay informed regarding your financial accounts by setting up text or email alerts from your bank and credit card company for withdrawals or charges over a specified dollar amount. Alerts delivered through mobile applications can be highly efficient as well. These alerts can provide real-time notifications of specific events or changes in your accounts. Such notifications can also inform you of password changes or other suspicious activity so that you can quickly respond if your account security has been compromised.Â
Seniors should store important documents such as Social Security cards, passports, and wills in secure locations. Investing in a high-quality locked safe or safety deposit box is generally advised. Digital information should be equally protected. Encourage seniors to use strong, unique passwords for online accounts and change them regularly. Two-factor authentication (2FA) should be enabled wherever possible. This adds an extra lawyer of protection by requiring additional verification before entering financial accounts.
Keeping an eye on your investment accounts is essential to making sure that your investments are safe and in line with your objectives. Conduct routine reviews and look for unfamiliar trades, withdrawals, transfers. You should also watch for alterations to holdings, asset allocations, beneficiaries, contact information, or linked bank accounts. For online accounts, check your browsing history and login locations to look for any suspicious access. Â
When it comes to elder financial exploitation, time is of the essence. Any suspicious activity should be reported as soon as possible to the relevant institution such as the bank or credit union. When reporting suspicious activity related to financial institutions or transactions, contact the relevant institution directly using their official customer service contact information. Avoid using contact details provided by potential scammers. Moreover, any exploitative or abusive behavior should be reported to local law enforcement and any financial scams should be relayed with the Federal Trade Commission (FTC).
Selecting a caregiver is a crucial decision, especially when entrusting them with the care and well-being of a loved one. A recent review by the Consumer Financial Protection Bureau found that one in nine incidents of elder financial exploitation, where the victim knew the perpetrator, were committed by non-family caregivers. Conduct thorough background checks before hiring in-house caregivers and avoid giving caregivers access to financial information or accounts. If the caregiver must assist with finances, monitor all account activity closely for withdrawals or unusual payments.
A power of attorney gives someone legal authority to manage financial affairs on your behalf. If an elder starts experiencing cognitive issues like dementia, a POA maintains management of finances with someone who still has capacity. This prevents funds being mishandled and makes it more difficult for unauthorized people to manipulate finances, open accounts, or transfer assets without permission.
Preventing financial elder exploitation is a shared responsibility that involves education, vigilance, and proactive measures. By staying informed about common scams, monitoring financial accounts regularly, and exercising caution when selecting caregivers, we can reduce the risks faced by older adults.Â
Elder law attorneys play a crucial role in preventing elder financial exploitation by providing legal counsel and assistance to seniors and their families. Connect with a top elder law attorney today at Attorney at Law.
