Every year, older adults are subject to financial abuse. Financial abuse is when an individual illegally or improperly uses the assets, property, or funds of an older person. Financial exploitation of seniors is a federal crime under the Elder Justice Act enacted in 2010.
In addition to impacting their finances, this type of abuse can also make older individuals feel vulnerable, scared, and humiliated. Fraudsters often target seniors because many of them have accumulated assets or may not be as comfortable with technology as younger generations. Protecting seniors from the devastating effects of financial abuse requires people to work together. The responsibility does not lie on just one person or industry. While banks play a vital role in helping to protect seniors, they are not able to do it alone.
Here are some tips for keeping the seniors in your life safe from financial exploitation:
Signs of Financial Exploitation
There are a number of signs that can indicate someone is trying to abuse a senior financially. These include:
Sometimes perpetrators of financial abuse towards elders are close friends or family members. In other cases, they can be people completely unrelated to the victim. Scams involving strangers often take the form of phone or mail scams which may not be as easily detected as something going on in-person.
How Seniors Can Protect Themselves
There are some steps seniors can take to protect themselves from financial abuse as well. If a senior is not able to fully care for themselves, a trusted individual in their life should ensure these tips are followed for them:
If you are an older individual, or a family member or trusted contact of a senior, watch for signs of financial abuse and if you spot any, investigate them right away. You’ll want to figure out exactly what happened and who is involved. Then, you’ll want to report it and get it cleared up as soon as possible. If bank accounts are involved, notify the financial institution immediately as well.
Unfortunately, we live in a world where fraud is rampant, and scammers are always on the lookout for new victims – including seniors. While it’s impossible to eliminate these kinds of scams altogether, by being aware of them and the steps you can take to protect yourself or your loved ones, you can increase your chances of avoiding them. For the most up-to-date information on scams making the rounds with BankFive customers, visit our Security Alerts page.
In addition to impacting their finances, this type of abuse can also make older individuals feel vulnerable, scared, and humiliated. Fraudsters often target seniors because many of them have accumulated assets or may not be as comfortable with technology as younger generations. Protecting seniors from the devastating effects of financial abuse requires people to work together. The responsibility does not lie on just one person or industry. While banks play a vital role in helping to protect seniors, they are not able to do it alone.
Here are some tips for keeping the seniors in your life safe from financial exploitation:
Signs of Financial Exploitation
There are a number of signs that can indicate someone is trying to abuse a senior financially. These include:
- Unexplained bank account activity such as large or reoccurring withdrawals
- Bank statements no longer being delivered to the house
- Bills not getting paid, or insufficient funds in the bank
- Cashed checks with different or suspicious signatures on them, or cashed checks written as gifts
- Legal documentation, such as wills, being changed or altered
- The senior not talking for themselves at a bank or store, or not seeming comfortable with whomever they are accompanying
- A new person begins handing their finances without proper documentation or notification
- Accounts are suddenly closed with no regard for penalty charges
Sometimes perpetrators of financial abuse towards elders are close friends or family members. In other cases, they can be people completely unrelated to the victim. Scams involving strangers often take the form of phone or mail scams which may not be as easily detected as something going on in-person.
How Seniors Can Protect Themselves
There are some steps seniors can take to protect themselves from financial abuse as well. If a senior is not able to fully care for themselves, a trusted individual in their life should ensure these tips are followed for them:
- Understand Your Assets. First, it is helpful to have a general idea of the amount of money currently held in all accounts, including investments. Documents pertaining to your assets should be organized and easy to find, whether they be stored physically or digitally. Talk to a bank representative, financial advisor, or lawyer to ensure your wishes about property and money are understood and fully-documented.
- Appoint a Trusted Contact. Choose someone you trust to help with finances as you get older. This individual can help track funds, especially when you can no longer do so on your own. Financial records, statements, checkbooks, and other financial information should be kept locked away, especially if living in a retirement home. This can prevent someone from walking in and looking at or taking your documents. It can also help prevent unsolicited advice from someone you are not comfortable with. Depending on your personal situation, you may consider making your trusted contact official, either through a power of attorney or a living trust.
- Check Your Credit Report. Pull your credit report at least annually to be sure there is no suspicious activity. Unfortunately, some scams might only be recognized through a credit report. Look for common signs of identity fraud including accounts or addresses you don’t recognize or inquiries you didn’t make.
- Be Vigilant. It is crucial to never share personal information like account numbers, social security numbers, or financial information over the phone, or through email or text message. Scammers often target older individuals in these ways because they think they might not be as comfortable with technology as younger people. Scams can come in many shapes and sizes so it can be beneficial to stay up-to-date with common tactics. Here are some important things to keep in mind:
- Don’t answer calls from callers you don’t recognize, and don’t click on links in text messages or emails unless you are positive that they are legitimate.
- Caller ID isn’t always 100% accurate. Crooks can “spoof” their phone number to make it seem like the call is coming from a trusted source. The same is true of email “Sender” fields.
- Even if you recognize a caller or believe an email or text message is real, don’t give out any sensitive personal of financial information. If you suspect a real problem with your finances or accounts, contact the company directly yourself, through their publicly listed phone number.
- If there is a document you do not understand, do not sign it. Ask for advice from a lawyer or financial advisor before signing anything that is unclear.
If you are an older individual, or a family member or trusted contact of a senior, watch for signs of financial abuse and if you spot any, investigate them right away. You’ll want to figure out exactly what happened and who is involved. Then, you’ll want to report it and get it cleared up as soon as possible. If bank accounts are involved, notify the financial institution immediately as well.
Unfortunately, we live in a world where fraud is rampant, and scammers are always on the lookout for new victims – including seniors. While it’s impossible to eliminate these kinds of scams altogether, by being aware of them and the steps you can take to protect yourself or your loved ones, you can increase your chances of avoiding them. For the most up-to-date information on scams making the rounds with BankFive customers, visit our Security Alerts page.