How to Protect the Elderly from Financial Abuse

Financial exploitation is one of the most common forms of abuse committed against older Americans. As people age, they face a higher risk of exploitation, especially if they have cognitive challenges such as dementia. Not only are they at a higher risk for fraud, but it can also make it difficult for them to stay financially stable. The good news is that there are steps you can take to protect those you love.

What is Financial Exploitation of the Elderly

Financial exploitation, also known as financial abuse, is when someone manipulates or uses another person's assets or finances for their own personal gain. This abuse can happen in different ways, including:

• Coercing or pressuring someone to give away money or assets
• Taking money or property without permission
• Forging signatures on financial documents
• Exploiting trust to get access to credit cards or bank accounts
• Deceiving someone into signing over control of their finances

Signs of Financial Abuse

Sometimes, financial abuse can be hard to spot, or you may feel that something is wrong but don't know all the details. In these situations, always trust your gut. If you think something is wrong, it probably is, and there is nothing wrong with ensuring your loved one's finances are safe. Some signs of financial abuse include a caretaker or family member handling all of your loved one's finances and not allowing them access to their debit or credit cards and account statements, not allowing them to check the mail and doing it for them (to intercept any letters that say their credit card bill is overdue, for example), unpaid bills, or unusual attempts to wire or transfer money. Or, your loved one may have a new "best friend" out of nowhere; this person could be a legitimate friend, but they may be getting close to your loved one to try to take advantage of them. These are just a few signs, but there may be others. Act immediately if you hear or see something that doesn't make sense. Contact your state's adult protective services association for help and next steps.

9 Ways to Protect Seniors from Financial Abuse

We've provided nine ways to protect seniors from financial abuse, but there are four basic steps involved in any choice you make, which are prevent, recognize, record, and report.

1. Keep an Open Dialogue:
   Communication is one of the best ways to catch any abuse as early as possible, if not prevent it from happening in the first place. Have an open conversation about money in a way that respects their dignity and autonomy, express your concerns, and offer your support. Also, talk about the importance of keeping their personal information safe, how to recognize signs of financial abuse, and where to go for help if needed.
2. Educate Your Loved Ones About Scams:
   Let's face it, scams have gotten sophisticated, and it can be challenging to spot a scam while it's happening. Encourage them to never share personal information on the phone or online and to contact you if something they're unsure about comes up. For example, suppose they're told not to talk with anyone about what's happening or that someone else is in trouble (such as a grandchild in jail). In that case, that's a sure sign of a scam, and they should call someone they trust before doing anything about it. Read more in our article How to Identify Scams and Prevent Them.
3. Establish Legal Documents Wisely:
   If help is needed to manage the bills and other finances, establishing a financial power of attorney (POA) can be a good way to safeguard finances. Just be sure the designated person understands their responsibilities and will act in the best interest of the person granting them this authority. Consider creating a will, medical power of attorney, or other legal document to help and protect your loved one; work with a legal professional to get started and ask any questions you might have.
4. Monitor Financial Accounts and Credit Reports:
   At least monthly, look at your loved one's accounts for any unusual activity or unauthorized transactions. You can also set up alerts for specific activity so you can be notified right away of any abnormal account activity. Review statements together in person, if you can, for any red flags your loved one may miss. Finally, check their credit reports every year to ensure their identity has not been stolen. You can check credit reports with the three major bureaus (Equifax, Experian, and TransUnion) for free every 12 months at annualcreditreport.com.
5. Limit Access to Personal Information:
   Ask them to be cautious about sharing sensitive information, especially over the phone. If they don't know who is calling or the call is unexpected, ask them not to respond to the caller and contact you right away to help them figure things out. If something is truly wrong, there is always time to figure out what's going on. When it comes to physical records or sensitive documents like Social Security cards, a locking file cabinet or safe can help keep things secure.
6. Stay Involved:
   This is especially important as they age or if their cognitive issues worsen. Offer them help with paying bills, budgeting, and advising them on any financial decision-making to keep others from taking advantage of them. It might be hard to do, but try to help them preserve their independence and dignity as much as possible—it can be difficult to admit when help is needed. If you stay involved, it can be easier to accept help when they see they need it. Being present in their life can also help you recognize true friends and anyone who doesn't have your loved one's best interests at heart.
7. Vet Caregivers:
   Anyone in your loved one's home or caring for them in any capacity should be carefully vetted. You can run a background check on potential caregivers to see if they have a history of theft or fraud; there is a cost with this, which can vary, but you can request it from your state police or a private company, possibly from the same one you found the caregiver through. You can also find information for free through public records requests for criminal and civil cases in many cities, counties, and states.
8. Seek Professional Guidance:
   If you think your loved one might be the victim of financial abuse, get help from a trusted professional such as a financial advisor, attorney, or social worker. They can give you next steps, support services, and resources available to victims. You can also count on your banker for help—they are trained to look for signs of financial abuse and can also help you get in touch with those who can help.
9. Encourage Empowerment:
   Help your loved one assert their independence and advocate for their rights. Encourage them to ask questions, get second opinions, and set and keep boundaries with others, whether they are caregivers, financial institutions, or anyone else. This will help them better spot scams.

How to Report Suspected Financial Abuse

If you're concerned about your loved one's finances and if someone is taking advantage, immediately report your concerns and any information you have about the situation. Talk to someone at your financial institution, an attorney, or a financial advisor about resources and what to expect next—even better, if you can talk to your loved one's banker or financial advisor about your suspicions, they can keep on the lookout for any signs and make a report to the authorities if needed. You can also make a report directly to:

• The CFPB (Consumer Financial Protection Bureau)
• The adult protective services association in your state
• A long-term care ombudsman (they live in an assisted living facility or nursing home)
• Their local police station
• Their elder care advocate or social worker
• If a Social Security representative payee may be misusing your loved one's Social Security benefits, contact your local Social Security office or call the Social Security Administration directly at 800-772-1213
• If you believe a fiduciary (appointed by the Department of Veterans Affairs, or VA) may be misusing your loved one's benefits, contact the VA directly
• Lastly, if a guardian or conservator may be misusing your loved one's property or money, get in touch with the court that appointed them as conservator or guardian; most courts have procedures for taking and investigating complaints

To file a report, you will need to provide the following information:

• Time, date, and location of the incident(s)
• Names of anyone involved and anyone who observed the incident(s)
• Description of the suspected financial abuse and any other types of abuse or neglect
• Your loved one's disabilities or health conditions, including any information about decision-making abilities or memory loss
• Whether you believe there is an urgent risk of danger to your loved one or someone else

WaFd Bank is Here to Help

After more than 100 years in business, we firmly believe relationships are the heart of our business. Our friendly and knowledgeable bankers are here to get to know you and your needs, wherever you are in life. With checking and savings account options to fit your needs, you also get some of the best digital tools available to make banking easy, like Voice-Activated Banking. Contact your local branch, open an account online, or give us a call at 800-324-9375 to learn more and get started today.