How to Prevent Elder Financial Abuse: Educating Seniors, Establishing Trusts, and Monitoring Activity

Introduction

Elder financial abuse is a growing problem in the United States. It is defined as the illegal or improper use of an elderly person’s funds, property, or assets. It can include scams, frauds, theft, mismanagement, and exploitation. It is estimated that over 5 million seniors in the U.S. are victims of financial abuse each year, losing an average of $2.9 billion annually.

Educate Seniors About Financial Scams and Frauds

One of the best ways to prevent elder financial abuse is to educate seniors about the different types of scams and frauds they may encounter. Common scams include telephone scams, mail scams, internet scams, and door-to-door scams. It is important to remind seniors to never give out personal information or money to anyone they do not know or trust. Additionally, there are many resources available for learning about scams and frauds, such as the Federal Trade Commission’s website and the AARP Fraud Watch Network.

Establish a Trusted Person to Manage Finances

Another way to help prevent elder financial abuse is to establish a trusted person to manage the senior’s finances. This should be someone who is trustworthy and reliable, such as a family member or close friend. It is also important to make sure this person is qualified to handle the senior’s finances responsibly. This could include having them take a class on financial management or working with a professional financial advisor.

Utilize Safeguards

In addition to having a trusted person managing finances, it is also important to put legal safeguards in place. One option is to set up a durable power of attorney, which authorizes another person to act on the senior’s behalf in financial matters. Another option is to set up a living trust, which allows the senior to transfer their assets into a trust to be managed by a trustee of their choosing. These safeguards can help protect against elder financial abuse.

Monitor Bank Statements and Credit Reports Regularly

It is important to monitor bank statements and credit reports regularly to check for any suspicious activity. Seniors should keep track of all accounts and look for any activity that does not seem right, such as large withdrawals, transfers, or charges. If anything seems off, it is important to contact the bank or credit card company immediately to investigate further.

Join a Support Group or Network

Joining a support group or network can be beneficial for seniors looking to prevent elder financial abuse. Being part of a network can provide access to resources such as educational materials, advice from experts, and connection with other seniors who have experienced similar situations. There are many types of support groups available, including those specifically focused on preventing elder financial abuse.

Encourage Family Members to be Involved

Finally, it is important to encourage family members to be involved in the senior’s finances. Having family members involved can help ensure that financial decisions are being made with the senior’s best interests in mind. There are several ways to involve family members in decision-making, such as attending doctor’s appointments, helping to create a budget, and keeping track of bills and expenses.

Conclusion

Elder financial abuse is a serious problem that can have devastating consequences. By taking steps such as educating seniors about scams and frauds, establishing a trusted person to manage finances, utilizing safeguards, monitoring bank statements and credit reports, joining a support group or network, and encouraging family members to be involved, seniors can better protect themselves from becoming victims of elder financial abuse.