10 Tips to Protect Elders from Money Fraud

In today's world, where scams are everywhere, older people can often be the target. Scammers take advantage of their loneliness, trouble remembering things, and not knowing much about new technology to trick them out of their money. 

To stop this from happening, we need to take action, educate ourselves and others, and be aware of how these frauds work. Here are some tips that anyone can use to protect seniors from fraud and money scams and keep their finances secure.

1. Talk With Your Family
Start a chat with your family, and it doesn't have to be just about getting old. You can start by talking about your own situation. For example, you might say, "I want someone else to keep an eye on my money. Would you be okay with getting alerts if something goes wrong? I can do the same for you." It's like making a deal where you both help each other out.

One way to handle these talks is to think of it like a scale from totally secretive to totally open. Instead of demanding to know everything or nothing at all, you can ask, "How much do you want to share?" and "What do you want to keep private for now?" This way, you can start small and build up over time.

2. Prepare a Money Management Plan
When you're making a plan to manage money as a family, keep in mind that money is personal. Second, it's important to talk about the reality of the situation. Admit that this is new and challenging, acknowledge that you're in a different stage of life, and agree to work together for the future.

Third, take it slow and don't try to do everything at once. For example, in case of an emergency, do you know who your parents' financial experts are? Who are their lawyer, accountant, financial advisor, and broker? Do you have contact details for a neighbor or someone who regularly checks in on your parents if you're worried? Can you share access to online accounts so you can discuss money matters more openly?

3. Learn What Documents Are Needed
To start getting organized, figure out what's been sorted and what's still pending. Since losing some decision-making ability is a normal part of aging, it's smart to prepare for later in life. For example, if someone's comfortable handling investments and money, they should be given a financial power of attorney (POA).

It's okay to ask questions, but make sure to ask politely or wait to be invited: "Would it be okay if...?" or "How do you feel about...?" Then, find out if your parents have important documents like a will and if it's up to date. Check their insurance policies and see if they've named beneficiaries for their accounts and policies. Do they have a healthcare proxy or a living will? And where do they keep all these documents?

Tip: Here's a list of important documents to gather: a will, a living will, separate durable POAs for healthcare and finances, property deeds, insurance policies, investment and bank account details, income statements, retirement account info, loan documents, and current bills.

4. Take Notice of Sudden Changes in the Account
Stay vigilant for any changes in financial accounts because there won't be a clear signal when someone's starting to struggle with money matters. Build strong relationships later in life that keep the family in the loop. Make them comfortable with sharing their worries and learn to react with care if ever trouble arises. Reacting negatively or too strongly to an incident may likely lead to avoidance and hesitancy to discuss problems in the future.

Tip: Keep an eye out for warning signs like not knowing which bills are paid, sudden changes in spending habits, bounced checks, and late fees on credit cards.

5. Make Money Matters Easy to Understand
Simplify finances. Let’s say they had six credit cards, reduce them to one debit card linked to someone’s credit union and two credit cards---this is merely a suggestion among many compromises that can be made. The key idea here is to reduce the number of credit or debit cards to easily manage finances. Take note of what interests the elderly would like to keep and other significant matters that may require separate credit or debit cards.

Also make it a routine to check on their expenses, create a budget for them, and consider arranging for bills to be paid automatically if necessary. Another option would be to have someone take care of paying the bills. 

6. Be Updated With the Ongoing Scams
Stay updated on local scams and make sure your parents are aware of the latest tricks. One way to start the conversation is by simply asking, "Have you heard about the latest scam?"

Regularly remind them not to respond to any requests for personal information, whether by email, mail, or phone. This includes things like Social Security or credit card numbers, or offers to buy products or investments they didn't ask for.

Sometimes it's not a clear scam. It could be a simple request for a yearly subscription, or a donation of sorts to a charity that doesn’t actually exist. A suggestion is to turn scam spotting into a "family activity"—everyone can keep an eye out, share emails, talk about scams, and keep each other safe by staying informed.

You can find helpful information on identifying and avoiding scams on the Federal Trade Commission's website. If you or someone you know has been a victim, consider reporting it to the Department of Justice National Elder Abuse Hotline or the FBI Internet Complaint Center.

7. Get Connected With People
Staying connected socially is important because isolation can lead to financial problems. But staying connected isn't always easy due to distance, busy lives, or family dynamics. Sometimes our own guilt about not staying connected stops us from doing anything at all. 

Even small things like starting a family group chat, or calling just to talk rather than to solve a problem, can strengthen relationships. Any form of interaction is better than none, so if you feel the urge to reach out, just do whatever you can manage. And if you're unsure how to start or what to say, simply asking genuine questions and listening can make a big difference.

8. Assign Responsible Family Members
You can manage money more effectively by dividing tasks among family members. If for instance, there is a family member skilled in money management, then it would be practical to have them handle the more delicate financial affairs. The same person can also provide guidance and share knowledge to the rest of the family. Another example would be if a family member is good at organization, they can be in-charge of document keeping---it doesn’t always have to be a high-end skill. Even a younger relative or sibling who's good with social media can be assigned to look out for famous and ongoing scams.

Another option is to appoint a "trusted contact" for a parent or loved one—a person whom a financial institution can reach out to in specific situations, such as concerns about the elder person's account activity when they can't be reached. While this designation doesn't grant the contact authority to act on the account, it adds an extra layer of protection against scams.

9. Keep Constant Watch On Your Accounts
Keeping an eye on your accounts for any signs of fraud is crucial. There are useful tech tools available to help in this fight. One option to consider is FidSafe®, a secure online safe deposit box where you can store digital copies of important documents like bank statements, birth certificates, insurance policies, passwords, tax records, and wills.

Another tool, EverSafe, sends alerts for suspicious activity such as unusual withdrawals, missing deposits, strange charges, changes in spending habits, and more. You can choose 3 or 4 people to receive these alerts. You can grant access to friends, family members, or a lawyer, and you can keep the specific account balances private if privacy is a concern. Monthly fees vary depending on the number of accounts you have.

10. Routinely Discuss Money Matters With the Family
Setting up regular family meetings to discuss your parents' financial matters is essential for preventing elder financial abuse. Scheduled meetings, although may sound cumbersome, is the best way to keep everyone informed and involved. But take note to keep it focused so the discussion can be fruitful and productive.

Protecting elders from money fraud is a responsibility we all share. By following these simple yet effective tips, we can create a safer environment for our elderly loved ones to navigate the complexities of modern finance. Let's continue to educate, support, and advocate for the financial well-being of seniors, ensuring that they can enjoy their golden years free from the threat of exploitation and fraud. Together, we can build a more secure future for all generations to come.