Financial abuse is a common form of elder abuse. Many criminals target aging adults with complicated scams that take advantage of memory or cognition problems, ignorance of new technology, or simply their trusting nature.
In order to protect yourself or your aging loved one from financial abuse, here are 4 important tips:
1. Set boundaries with care workers and other hired help
Although home care workers and other hired help can be powerful allies in the aging process, make sure you set boundaries — even when it’s someone you’ve been employing for years. Don’t give them access to your bank account or other financial assets, and don’t share personal documents that might contain your Social Security Number.
If your home care worker performs weekly or monthly tasks that require spending money, such as buying groceries, give them a prepaid debit card to use. Prepaid debit cards like the Green Dot card are great options. They’re separate from your regular bank account and they’re also reloadable. If you are assisting someone who lives far away, you can set up automatic deposits onto the card too.
2. Create a communication plan to prevent financial abuse from family and friends
No one wants to consider the possibility that a family member or friend would ever take advantage of them. Unfortunately, people target the senior citizens in their life because they are more likely to be trusting and want to help.
For example, a family member or friend may invent a sad story or approach their target with a fake “investment opportunity” to steal money. Often, they try to convince seniors to get a reverse mortgage. The culprit then takes the money and leaves their victim with little or no equity in their home.
To combat this form of financial abuse, create a “communication plan”. Set a rule so that whenever someone asks them for money, they wait a few days before agreeing to give anything. During that waiting period, they call you to get your opinion.
3. Shred documents, always review bills and bank statements, and hire from reputable sources
These are also important steps to take to prevent financial abuse targeting senior citizens.
First, whenever you have a paper document containing personal information, such as a bill or bank statement, always shred it before you throw it away. Paper shredders are inexpensive, easy to use and one of the best ways to prevent identity theft.
Second, always review your bills and bank/credit card statements. Financial fraud often starts small. For instance, if a criminal has your credit card, they may “test the waters” with a few small purchases before going in for a big one. You’re less likely to notice an extra $10 charge than $1000. By checking all bills and statements line-by-line, you can catch a scam before it escalates.
Third, if you’re hiring help, always hire from reputable professional sources. Avoid sites like Craigslist. If the person you’re hiring isn’t associated with an agency, do a background check first. Also, if you do hire from an agency, always ask about liability insurance and go online to look at the agency’s reviews and Better Business Bureau profile.
4. Keep valuables locked and out of sight, and be careful who you let inside your home
When not in use, keep your wallet, purse, jewelry and other valuables hidden from sight and locked in a drawer or safe. We also recommend purchasing security cables (which are similar to a bike lock) for your computer or laptop. This will prevent crimes of opportunity if someone untrustworthy enters your home.
Similarly, be very careful about who you invite inside. In one type of scam, criminals will claim to be from a utility company. They’ll say they need to enter your home to look at a water heater or appliance. Legitimate companies are very, very unlikely to need access to your home without notifying you ahead of time.
If this happens, tell the person to wait outside while you lock the door and call the utility company. Use the number in the phone book or listed on your most recent bill, not any number the person gives you. (They may have a partner ready to backup their crime.) Also, listen to your gut, and if someone seems really suspicious, call the police.
Financial Abuse is Preventable!
Although it can be disheartening to consider the different types of financial abuse that prey on senior citizens, the good news is that it’s preventable. Use the tips above, educate yourself and talk to your loved ones to make sure no one loses their gold in their golden years!