Elder financial abuse is a growing problem, with scammers and even family members taking advantage of vulnerable individuals. Financial exploitation can devastate your savings and security, whether through fraudulent schemes, undue influence, or outright theft. This guide will help you recognize the warning signs and proactively protect yourself.
Common Scams Targeting Seniors
Scammers use a variety of tactics to deceive older adults. Some of the most common scams include:
- Fake IRS or Government Calls: You may receive calls from someone claiming to be from the IRS or Social Security, demanding immediate payment.
- Lottery or Sweepstakes Scams: Scammers tell you you’ve won a lottery but need to pay fees to collect your winnings.
- Tech Support Scams: Fraudsters claim your computer has a virus and request remote access or payment for unnecessary repairs.
- Romance Scams: Online predators pretend to be a love interest, then ask for money under false pretenses.
- Grandparent Scams: A caller pretends to be a distressed grandchild, asking for money urgently.
Tip: Never click on links in emails or download attachments from unknown sources. Scammers use urgency to pressure you into acting before you can think.
Family and Caregiver Financial Exploitation
Unfortunately, some seniors are financially abused by those closest to them. Family members or caregivers may:
- Coercing you into changing your will or power of attorney.
- Take money from your accounts without permission.
- Refuse to pay your bills or handle finances in your best interest.
How to Safeguard Your Finances
- Establish a Power of Attorney (POA)
A Power of Attorney (POA) allows a trusted person to manage your financial affairs if you become unable to do so. Choose someone reliable and discuss your expectations.
- Avoid Adding Family Members as Signers on Accounts
Adding someone as a co-signer or joint account holder may seem convenient, but it creates risks:
- They can withdraw money without your consent.
- The money could be subject to their creditors or legal judgments.
- It can lead to tax and inheritance complications.
Instead, consider a trust with a neutral third-party fiduciary to manage your assets.
- Work with a Licensed Professional Fiduciary
A licensed professional fiduciary serves as a neutral, ethical third party who can act as a trustee or conservator if you lose capacity. They are legally obligated to act in your best interest and can help ensure your finances are managed properly.
- Set Up a Living Trust and Will
A living trust protects your assets and allows a designated trustee to manage them if needed. A living will ensures your medical and financial wishes are honored.
- Secure Your Personal Information
- Never give out banking or Social Security information over the phone.
- Shred important documents before disposing of them.
- Use strong passwords for online accounts and enable two-factor authentication.
Stay Vigilant Against Scams
- Never click on links in unsolicited emails; log into accounts directly through official websites.
- Be wary of anyone urging you to act immediately – scammers rely on pressure tactics.
- If in doubt, consult a trusted friend, attorney, or financial advisor before sending money.
Final Thoughts
Protecting yourself from elder financial abuse starts with awareness and preparation. By setting up legal safeguards, working with a professional fiduciary, and staying alert to scams, you can safeguard your financial security and peace of mind.
If you suspect financial abuse, immediately report it to your local Adult Protective Services (APS) or an elder law attorney. Staying informed and proactive can make all the difference in keeping your assets and future safe. See more info here: https://loomerlaw.com/elder-financial-abuse-and-undue-influence-in-california-a-growing-concern-understanding-elder-financial-abuse/
https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/
https://www.fidelity.com/viewpoints/wealth-management/elder-fraud
https://www.aarp.org/money/scams-fraud/prevent-financial-elder-abuse/
https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/elder-fraud
