As people age they become more vulnerable to financial exploitation. Often, and sadly, this can come from individuals who have the easiest access to a senior’s monetary resources such as caregivers. Safe @ Home would like to share some ways for seniors and caregivers to ensure that finances are kept safe and secure.
According to Bloomberg, approximately $37 million dollars a year is lost due to senior financial exploitation. “Financial exploitation is a form of abuse that involves the taking or misuse of an elderly person’s financial resources.” (usbank.com) Often this exploitation is at the hands of someone that the senior has placed trust in such as a friend, neighbor, family member, or caregiver.
Types of financial exploitation:
- Theft, outright stealing of financial resources
- Manipulation, coercing the senior to give money or property to someone
- Credit card misuse, using cards to pay for perpetrators personal needs/wants
- Equity theft, borrowing against a senior’s home as a way to gain access to money
- Power of attorney, abusing control to gain access to finances
The internet has made it easy for individuals all over the globe to easily gain access money from seniors and others. “Business opportunities, online dating, chatrooms, and online shopping are some of the platforms that other perpetrators utilize to exploit elderly individuals who might be isolated, lonely, or just bored.” (usbank.com)
So how do you keep yourself or someone you love safe from becoming a potential victim of financial exploitation? The first step is an easy one – be aware that financial exploitation exists. Below are some steps that seniors and caregivers can take to protect themselves and others from becoming a victim.
- Ensure you have updated copies of important documents – wills, power of attorney, trusts, and health directives.
- Communicate wishes with those who you are placing in charge through the ways listed in step on. Make sure you communicate clearly your wishes and ensure that the individuals are aware of the role that they are taking on and ensure you are confident that they can handle the role.
- Review beneficiary designations for accounts to make sure they are correct – retirement accounts, bank accounts, insurance policies.
- Communicate clearly and early to chosen individuals of trust – goals, objectives, future plans, wishes.
- Learn about financial exploitation ploys and schemes and how they occur so you can be watchful for signs it might be happening to you. Learn to recognize them early and the steps you would need to take to get help.
- Monitor all financial statements for unapproved and suspicious transactions.
- Keep passwords, PIN numbers, devices, and sensitive information safe and secure. Update them on a routine basis.
- Talk to your financial institutions to see what products and services they offer to help guard you against identity theft and financial exploitation.
Capable Seniors
Seniors who are capable should be able to continue to handle their own finances on a day to basis until they become unable to do so. This includes writing their own checks, paying bills, opening mail, and monitoring and setting up accounts and direct deposits. All seniors are encouraged to use voicemail to screen calls, not to give information out over the phone to someone who calls from an unknown number, and monitor accounts closely. If you suspect the individual calling is not from your company hang up and call the company back from a phone number you know belongs to it such as off a monthly statement or listed on a secure website.
You can learn more from US Bank on how to recognize, report, and protect yourself and others from financial exploitation by following the links below.
Caregivers – Click this link if you are a caregiver
Yourself – Click this link for information on how to protect yourself
Safe @ Home Senior Care is proud to promote financial safety for seniors and offer education resources to keep our clients and others safe!