Older Americans are losing nearly $13 billion every year to individuals who prey upon their vulnerabilities. But the dollar amount linked to elder financial abuse actually is much higher because not every case is reported.
Seniors are being victimized by a variety of sources, including trusted family members, caregivers and friends; phone, mail and internet scammers; business pros and home repair contractors; and money managers.
Ronald Long, Director of Elder Client Initiatives for Wells Fargo Advisors, said the increase is the result of many factors.
“Our seniors are living longer, and many of them are living alone or isolated from support systems,” he said. “They are often wealthier than the younger population, many times with steady and predictable funds coming in regularly. Research is finding even without diminished capacity, we are not as good in making financial decisions as we age. It may be that same declining financial decision making, coupled with the loneliness, causes seniors to rapidly allow ‘new best friends’ to access their important financial information.
Modern technology also is allowing bad guys to reach into a senior’s home from remote locations around the world. All of these factors together make for a potent cocktail of fraud and abuse.”
The key to stopping this epidemic. Long notes, is to report possible fraud situations to local authorities or anyone who can help once it is suspected.
Signs of financial fraud are subtle but noticeable.
Victims may be reluctant to discuss financial matters. There may be sudden or unexplained activities associated with their accounts or assets, including large withdrawals or home title transfer, unpaid bills, changes in the will, and sudden increased spending by family for friends.
To help protect yourself or a loved one from elder financial abuse, consider the following:
- Review power of attorney. Ensure the person is trustworthy. Add checks and balances by having another individual receives duplicate account
- statements.
- Consult with trusted family members or financial professionals before making major financial decisions.
- Use direct deposit for checks and automatic bill pay.
- Communicate with the bank.
- Hire a geriatric care manager.
- Check references for any hired care provider.
- Do not give credit cards to others.
- Shred bank statements, credit card offers and other financial documents.
- Do not give personal or financial information (Social Security numbers and online passwords, etc.) to anyone if you did not initiate the contact.
- Register for the national no-call registry.
“’See Something, Say Something’ is messaging that will tremendously help reduce the epidemic of elder financial abuse,” Long said.
To report elder financial abuse, Long recommends contacting a local agency such as Eldercare Locator, a state agency or the National Center on Elder Abuse. In Missouri, call the statewide APS hotline, 800-392-0210, or visit the Missouri Department of Health and Senior Services’ website, http://health.mo.gov/safety/abuse/.
This article is sponsored by Wells Fargo Advisors, LLC, Member SIPC
