Fighting Financial Elder Abuse

Improvements in medical care and technology mean that people are living longer than ever before. While this is encouraging news, it does open the door to age-related fraud. Financial elder abuse continues to rise at alarming rates, and it is leaving thousands of people in financial crisis each and every year.

Financial elder abuse is defined as the improper use of money or property belonging to an individual over the age of 60. It may involve theft, concealment, or fraud, and in many cases, the perpetrator is a close friend, family member, or caregiver of the victim. Extreme cases include forgery (such as to a will), identity theft (such as stealing social security checks), and threatening the victim to gain access to their money. Still, other cases of financial elder abuse are perpetrated by strangers – typically by phone or email.

A common tactic that scammers use is Tech Support Fraud where an imposter calls to assist with a non-existent issue that requires remote access to the user’s computer, purchase of software, or, more recently, credentials for online banking. The scammer may blackmail the victim into transferring funds, or they may continue to siphon money from them without their knowledge.

Another frequent scam is where the fraudster contacts the victim by pretending to be their grandchild who needs emergency financial assistance. They may claim to have been arrested or even kidnapped and they need a wire immediately to be released.

So, how can we help our friends and family members from becoming a victim of financial elder abuse?

·         Stay in contact with your elderly family members. An open line of communication can help shed light on potential scams before the damage has been done.

·         Remind your friends and family to never give information out over the phone or by email. This is especially true for financial information. NEVER give your PIN, Online Banking password, or social security number over the phone.

·         Verify, verify, verify. When in doubt, call the person back at a known, published number. Only then should you feel comfortable with providing details over the phone. Remember, a real institution will ask you to verify your identity, but they will not ask for your PIN or password – ever.

·         Use vetted caregivers and do not leave sensitive information out.

·         If your family member is incapacitated, or otherwise unable to manage their funds (including their estate, power of attorney, and medical directives), you can help protect them by stepping in and offering assistance. Aside from ensuring that the accounts are used as intended, you should also enroll all credit and debit cards in Purchase Alerts and Fraud Alerts, offered by just about every financial institution and card provider. Don’t forget to monitor all three credit bureaus for identity theft. All users are entitled to one free annual credit report per year, and we recommend that you stagger the requests to ensure accuracy.

Never be afraid to ask for help. Your credit union can be an ally in the fight against financial elder abuse. Do you have questions? I want to hear from you! Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they’ve always wanted.