Safeguarding our loved ones is the number one priority for all heads of households. Whether mental, physical, or financial well-being, almost everything we do is to ensure the family is happy, healthy, and safe. Today, we’ve got more to contend with than ever, and I’m not talking about airborne viruses, bullies on the playground, or unwanted solicitors at the doorstep, no. With every part of our lives, including finances, being connected online, there’s an opportunity for scammers to hide behind false identities and prey on those most vulnerable.
Financial exploitation of vulnerable adults, particularly older people, is a big problem. Those in their twilight years, who’ve saved their whole lives and are entitled to certain benefits, are easy marks for those who want to take advantage of them. It’s sad but true, and not all unscrupulous characters preying on our aging parents come from across the world behind a computer; some have direct access to the home.
As a family financial planner, I provide the most relevant information on how families can safeguard their finances and prevent difficulties from blindsiding them. In this article, I will outline some areas in which older people are most vulnerable to deception and scams and how to help them guard against attacks preemptively.
Financial Exploitation of Vulnerable Adults – What to Watch Out For
- Telemarketing and phone scams
While telemarketing scams are not new, they are particularly effective because scammers can create a sense of urgency and manipulate the emotions of those who aren’t skeptical of fantastic claims. Fraudulent calls may involve offers of fake products, lottery winnings, or requests for charitable donations.
One particularly devious tact is called the “grandparent scam;” the grandparent scam is one of the more heartless frauds out there; scammers impersonate a grandchild or another family member in distress, claiming they are in urgent need of money due to an accident or legal trouble. The elderly victim, driven by concern, may wire money or provide personal information without verifying the situation.
Seniors should be educated about the risks of sharing personal information over the phone and encouraged to hang up on unsolicited callers. Implementing call-blocking tools and reporting suspicious calls can also help mitigate these scams. Also, families should establish a protocol for verifying such claims before sending any money or personal information.
- Cybersecurity risks – phishing and email scams
Email scams, also known as phishing, target older adults by using convincing emails that appear to be from legitimate sources, like banks, government agencies, or well-known companies like credit card companies; these emails will often ask recipients to provide sensitive information like passwords, credit card details, account numbers, or even Social Security numbers.
I have given seminars and instructed people of all ages about cybersecurity dos and dont’s – a great motto to live by – do not send sensitive information to any entity soliciting it through email! All financial and governmental institutions have protocols for gathering information from individuals, and it will never come through an unsolicited email. Using secure portals and brick-and-mortar locations is always recommended over email exchanges.
- Medicare fraud
Once senior citizens are eligible for Medicare benefits; there’s an onslaught of scammers calling, emailing, and texting to get their information. Scammers will use emails or fake websites to prompt seniors to enter their personal information, including account details, under the guise of updating their records or receiving benefits. Automated robocalls will offer new Medicare cards, benefits, or enrollment opportunities, aiming to collect personal information or defraud seniors.
- Direct access risks – guardianship/contractor abuse
Perhaps one of the most invasive/disheartening scenarios of elder abuse is when someone has direct access and chooses to defraud vulnerable adults right within their homes. While it’s not common, sometimes those put into guardianship roles, such as health caregivers, lawyers, or even contractors hired to fix issues around the home, may take advantage of older people who trust them; those with cognitive vulnerabilities, such as Alzheimer’s or dementia are at great risk for this.
Financial Exploitation of Vulnerable Adults – What Can Be Done?
I didn’t write this piece to fearmonger or ruin anyone’s afternoon, but rather to help sons and daughters understand how they can help their aging parents protect themselves. While it’s true that there are many avenues scammers/frauds can take to exploit our older citizens, defenses against these attacks all follow a basic set of guidelines that can be learned quickly.
As for caregivers/service providers with access to the elderly within their homes, do your best to vet anyone with direct contact. Don’t allow strangers to gain access without a thorough background check. When possible, ask to be included in all events related to finances or business transactions.
Negligence Is Not a Great Excuse
Protecting your elderly parents’ assets starts by educating them on what to look out for, what to be wary of, and having an accessible template outlined for them to follow whenever divulging sensitive information. An hour-long conversation with your aging parents could be all needed to safeguard them from scams.
Negligence is not an excuse if your parents get abused. We’ve all dealt with parental “stubbornness” now and again, but it cannot be that your parents are more open/trusting with the scammers than they are with you on financial matters. Insist on getting them into legacy planning with a professional they can be comfortable with. You have access to resources they do not, and you must help them understand. It’s possible to have these conversations and not infringe on their independence; I’ve helped many families do so.
To learn more about how to help safeguard your parents/ older loved ones, please reach out. I work with many families, up and down the entire family tree, and I’ve conducted many conversations around the subject.
