Elder financial abuse — the illegal, unauthorized, or improper use of an older person's funds, property, or assets — is the fastest-growing form of elder abuse. Seniors lose an estimated $36.5 billion annually to financial exploitation.
10 steps across 1 sections
1. Steps Guide
- Educate the senior about common scams — Review current fraud tactics: phone scams (IRS impersonation, tech support), email phishing, romance scams, grandparent scams, sweepstakes fraud, and Medicar...
- Set up financial safeguards — Arrange for trusted family members to receive duplicate bank and credit card statements. Set up transaction alerts on all accounts. Consider requiring dual signatures ...
- Choose the right power of attorney — A durable financial power of attorney is essential but must be granted to a trustworthy person. Consider naming co-agents or a professional fiduciary. Limit the...
- Lock up sensitive documents — Keep checkbooks, account statements, Social Security cards, and tax returns secured. Use a safe or locked file cabinet, especially when caregivers, contractors, or vis...
- Monitor finances regularly — Review bank and credit card statements monthly. Watch for unusual withdrawals, new accounts, missing deposits, unexplained transfers, or ATM withdrawals the senior coul...
- Set up a credit freeze — Place a free credit freeze with all three bureaus (Equifax, Experian, TransUnion) to prevent anyone from opening new credit accounts in the senior's name. Lift the freeze t...
- Establish a trusted contact at financial institutions — Many banks and brokerages allow you to designate a trusted contact person who can be reached if the institution suspects exploitation or cogn...
- Be wary of new relationships — Monitor for new "friends," romantic interests, or advisors who show unusual interest in the senior's finances. Romance scams are one of the fastest-growing forms of e...
- Review estate planning documents regularly — Sudden changes to wills, trusts, or beneficiary designations — especially those benefiting new acquaintances or one family member over others — are red ...
- Know how to report abuse — Contact Adult Protective Services (APS), local law enforcement, the state attorney general's office, and the Consumer Financial Protection Bureau (CFPB). Reporting is leg...
Common Mistakes
- Assuming family members are always trustworthy
- Giving too much power to one person
- Ignoring early warning signs
- Not talking about money
- Responding to unsolicited contacts
Pro Tips
- Use bank safeguards
- Register on the Do Not Call Registry
- Consider a daily money manager
- Set up mail-in ballot voting
- Use technology for monitoring
Sources
- Protect Older Americans from Financial Exploitation — American Bankers Association
- Guide to Prevent Financial Elder Abuse — First Business Bank
- Tips for Preventing Elder Financial Exploitation — NY.gov
- Elder Financial Abuse: Signs and Prevention — MoneyFit
- Protecting Older Adults from Fraud — CFPB
- Protecting Seniors from Financial Abuse — FDIC