An estimated 30 billion dollars are lost every year to financial elder abuse scams. Most of the time we assume the thief is a total stranger. But far too often, even trusted family and friends are the root of this form of abuse. And unfortunately, so many cases of financial elder abuse go unreported. It may be because the victims are too ashamed to report what happened. Or maybe they are unable to due to cognitive or physical limitations. Either way, spotting and preventing financial elder abuse can be done. Whether it comes from you or a trusted professional, always be on the lookout. Financial industries are making great strides in minimizing financial exploitation of seniors. Yet you can’t rely on this alone to protect you and your family’s finances. So it is always recommended to take matters into your own hands. Spotting financial elder abuse is not always easy.
There are a few steps you can take to start the process. Consumer Reports describes some of these ways. Financial planner Austin Frye says that the biggest risk factor is cognitive impairment and isolation. Therefore, it’s so important to keep in touch with your aging parents and ask questions. Know whether they are keeping up with paying bills. In addition, if they are in contact with any new strangers, this could also be a risk.
However, they may not be so eager to share the details of their finances. It may feel like you are suggesting they are incompetent. In this case, try utilizing the help of professionals, like licensed fiduciaries at Arizona Elder Care. They may be more likely to accept help from a trusted professional. Especially if the referral comes from their doctor or attorney.
On the same note, licensed fiduciaries can also help set up “checks and balances”. They can make sure your parents have all essential legal documents in place. This way, should they need more assistance, their agent can step up.
Of course, two sets of eyes are better than one. Having more than one person providing oversight is helpful. It could be you, a sibling, or a professional. But the more everyone is communicating with each other, the safer the senior’s finances will be.
We can never fully prevent financial elder abuse. There are con artists and thieves that are extremely skilled in scamming seniors. But at the same time, keeping track of your aging loved one’s finances is crucial. If you are unable to, hiring a licensed fiduciary is a great way to safeguard their finances. And above all, if you even suspect financial elder abuse, report it immediately.