How to Protect Aging Parents From Financial Exploitation

Scammers look for victims who are gullible and vulnerable. Seniors are mainly targeted because they have declining financial capabilities, massive wealth, and age-related issues such as dementia. Financial exploitation can be committed by family or friends who may take advantage of a senior parent's generosity. This guide will help adult children understand common financial scams, how to protect senior parents and ways to report them. 

5 Common Scams And Issues Seniors May Run Into

1.    Embezzlement

This is when a person trusted with the senior's money uses it for personal gains. The con artist may use the senior parent's credit cards to pay personal expenses. 

2.    Lottery or Sweepstakes Scams

Callers can scam a senior parent by lying to them that they have won prizes, but in order to get the money, they first have to send money to cover bank fees.

3.    Charity Scams

This is the most common financial abuse used on unsuspecting seniors. Callers can falsely ask for donations to aid humanitarian causes. 

4.    Forgery of Signatures

A senior's signature may become easier to forge, thus offering an opportunity for con artists to commit financial crimes. 

5.    Unauthorized Use of ATM Cards

Rogue caregivers or children may use ATM cards belonging to seniors without their knowledge.

Warning Signs To Look Out For

As an elderly child or relative in charge of a senior's finances, be on the lookout for the following warning signs that seniors have been financially exploited:

•    Bank statements are being hidden

•    Refusal to talk about money matters

•    Secretive behaviors

•    Unexplained withdrawals of money from bank accounts

•    A change in the senior's spending habits

•    Notices of unpaid bills

•    Missing assets or properties

•    Missing credit card statements

•    Unexplained purchases using credit cards

How Seniors Can Reduce The Risk Of Financial Exploitation

• Understand the Risk

Seniors should always remember that they are more vulnerable to financial abuse. They should learn about the common ways that seniors are being scammed. Seniors should be cautioned to take precautionary measures such as keeping their credit card numbers private. 

• Designate a Trustee

When seniors are incapacitated, they should give a trusted person the responsibility to manage their finances. A trusted person will notify the senior of any questionable activity in their accounts. 

• Regularly Review Financial Activity

Seniors should be encouraged to review credit reports bi-annually to look for inaccuracies or suspicious activity.

• Simplify Finances

Seniors can streamline their finances. They can easily manage and keep track of their money when they have fewer accounts. Seniors should be advised to use cash instead whenever there is suspicious use of debit and credit cards. 

• Set Up Email or Text Alerts

Elderly children can help their parents set up emails and text alerts on their phones. This will help the senior to monitor transactions easily.

• Learn To Detect Suspicious Activity

Senior parents can give their children authorization to monitor their accounts and spending activities on their behalf. Never send money to suspicious organizations or people.

Reporting Financial Exploitation

When a senior is a victim of financial exploitation, the following steps are helpful:

•    Contact the seniors' financial institution- they can freeze the accounts or block any future suspicious activity.

•    Consult a lawyer, especially one that understands financial abuse. A lawyer can be beneficial in giving way to avoid potential scams in the future. 

•    File an identity theft report.

•    Contact the local Adult Protective Services office.

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