November is National Family Caregivers Month - a time to honor those who provide care and support to loved ones. One critical aspect of caregiving is safeguarding your family member’s financial well-being. Financial exploitation of seniors is a growing problem, and caregivers play a vital role in preventing it.
What Is Financial Elder Abuse?
Financial elder abuse occurs when someone illegally or improperly uses an older adult’s money, property, or assets. It can be committed by strangers through scams or by trusted individuals such as family members or caregivers. Beyond financial harm, this abuse can leave seniors feeling vulnerable, scared, and humiliated.
According to recent reports, one in ten older adults experiences some form of elder abuse each year, and over 5% fall victim to financial exploitation. Losses can be devastating, averaging $34,000 per victim, with some cases exceeding $100,000. Alarmingly, it’s estimated that only 1 in 44 cases is reported, meaning the true scope is far greater.
Warning Signs of Financial Exploitation
There are a number of signs that can indicate someone is trying to abuse a senior financially. Watching out for these red flags can help protect seniors:
Fraudsters are using increasingly sophisticated tactics to target older Americans. Be on the lookout for the following scams:
How Seniors Can Protect Themselves
There are several steps that seniors can take to protect themselves from financial abuse. If a senior is not able to fully care for themselves, a trusted individual or caregiver should ensure these tips are followed for them:
Here is some additional advice for keeping the seniors in your life safe from financial exploitation:
Sometimes financial elder abusers are close friends or family members. In other cases, it can be someone completely unrelated to the victim. No matter who you suspect is perpetuating the abuse, it’s important to take action right away:
Financial elder abuse is preventable with vigilance and teamwork. Caregivers are the first line of defense. By staying informed and proactive, you can help protect your loved one’s hard-earned savings and peace of mind.
For the latest scam alerts and security tips, visit BankFive’s Security Alerts page or contact us for help setting up account protections.
What Is Financial Elder Abuse?
Financial elder abuse occurs when someone illegally or improperly uses an older adult’s money, property, or assets. It can be committed by strangers through scams or by trusted individuals such as family members or caregivers. Beyond financial harm, this abuse can leave seniors feeling vulnerable, scared, and humiliated.
According to recent reports, one in ten older adults experiences some form of elder abuse each year, and over 5% fall victim to financial exploitation. Losses can be devastating, averaging $34,000 per victim, with some cases exceeding $100,000. Alarmingly, it’s estimated that only 1 in 44 cases is reported, meaning the true scope is far greater.
Warning Signs of Financial Exploitation
There are a number of signs that can indicate someone is trying to abuse a senior financially. Watching out for these red flags can help protect seniors:
- Unexplained withdrawals or transfers from bank accounts.
- Bank statements missing or no longer being delivered to the home.
- Unpaid bills, despite sufficient funds.
- Checks with suspicious signatures or written as “gifts.”
- Sudden changes to wills or powers of attorney.
- A new person managing finances without proper documentation.
- Accounts closed abruptly, ignoring penalties.
- The senior appears fearful or avoids discussing finances, especially around certain individuals.
Fraudsters are using increasingly sophisticated tactics to target older Americans. Be on the lookout for the following scams:
- AI Impersonation: Scammers clone a loved one’s voice or generate a “deepfake” video to demand emergency funds.
- Tech Support Pop-Ups: Fake alerts that pop-up on a computer screen or mobile phone claiming your device is infected.
- Medicare & Health Insurance Scams: Calls requesting personal info for “new benefits.”
- Romance Scams: Online relationships that lead to requests for money.
- Fake Fraud Alerts: Messages urging you to divulge your bank credentials to prevent fraud.
How Seniors Can Protect Themselves
There are several steps that seniors can take to protect themselves from financial abuse. If a senior is not able to fully care for themselves, a trusted individual or caregiver should ensure these tips are followed for them:
- Know your assets and keep financial documents organized and secure.
- Appoint a trusted contact and consider a power of attorney or living trust.
- Check your credit report regularly for suspicious activity.
- Stay vigilant. Never share sensitive information via phone, email, or text. Verify any urgent request by contacting the person or company directly.
Here is some additional advice for keeping the seniors in your life safe from financial exploitation:
- Review bank and credit card statements regularly with your senior.
- Set up account alerts for unusual transactions.
- Discuss joint accounts or adding a trusted contact for oversight.
- Ensure their legal documents are current, such as a power of attorney or living trust.
- Educate your senior about new scams, especially AI-driven fraud.
- Secure their financial records in locked storage or encrypted digital files.
Sometimes financial elder abusers are close friends or family members. In other cases, it can be someone completely unrelated to the victim. No matter who you suspect is perpetuating the abuse, it’s important to take action right away:
- Notify the financial institution immediately.
- Report the fraud. Guidance can be found at https://www.justice.gov/elderjustice/find-help-or-report-abuse.
- File an Elder Fraud Complaint at https://www.ic3.gov/CrimeInfo/ElderFraud for internet-related scams.
- In emergencies, call 911.
Financial elder abuse is preventable with vigilance and teamwork. Caregivers are the first line of defense. By staying informed and proactive, you can help protect your loved one’s hard-earned savings and peace of mind.
For the latest scam alerts and security tips, visit BankFive’s Security Alerts page or contact us for help setting up account protections.