As our loved ones age, the responsibilities of caregiving often extend beyond healthcare and daily support. One crucial yet often overlooked aspect of caregiving is financial protection. With a rise in financial exploitation targeting older adults, it’s essential for families to be informed and proactive.
Understanding Financial Exploitation
Financial exploitation occurs when a scammer, whether a stranger or a person the senior trusts, manipulates or deceives them to gain access to their personal and financial information. Such scams can take many forms, including phone calls, emails, and online pop-ups, often leveraging urgency, fear, or confusion to pressure seniors into making hasty decisions.
Seniors may be especially vulnerable due to factors like unfamiliarity with technology, increased isolation, health changes, or the recent loss of a spouse who previously handled finances. Recognizing these vulnerabilities highlights the importance of approaching the topic with empathy and understanding.
Caregivers or family members wanting to help protect their aging loved ones from financial exploitation can start by providing the senior with practical strategies they can implement themselves.
What Seniors Can Do To Protect Themselves
1. Stay Aware Of Account Activity
Encourage seniors to regularly review their bank, credit card, and brokerage statements for any unauthorized activity. If they need assistance, they can consider appointing a trusted individual as a “financial caregiver” to serve as an extra set of eyes and help monitor their accounts.
2. Pause Before Responding
Scammers often create a false sense of urgency. Advise seniors to avoid sharing sensitive information, such as account numbers, passwords, or Social Security numbers, in response to unexpected communications. It’s essential to verify any request by contacting the company directly using a known phone number.
3. Organize Key Information & Contacts
Creating a secure, organized file of important financial, legal, insurance, and estate planning documents can streamline the process if issues arise. Seniors can include contact information for financial advisors, attorneys, and trusted family members. Additionally, they can often name a trusted contact at financial institutions. This contact generally does not have authority to make transactions unless separately authorized, but they may be contacted by the institution if there are concerns about fraud, exploitation, or unusual account activity, providing an added layer of protection.
What Loved Ones Can Do To Help
1. Start With A Conversation, Not Control
Financial protection generally should not begin with taking over. Start with calm, judgment-free conversations about what your loved one would want you to do if you noticed unusual account activity, who they would trust as an emergency contact, and where important documents are kept.
Approaching the topic with compassion is important. Many intelligent, capable people fall victim to scams. Removing shame from the conversation can make it easier for loved ones to speak up if something feels wrong.
2. Watch For Warning Signs
Financial exploitation is not always obvious at first. Warning signs may include unusual withdrawals, unpaid bills, sudden account changes, new financial “helpers,” confusion about recent transactions, or increased secrecy around money. If you observe something concerning, approach the situation with gentle inquiry rather than jumping to conclusions.
3. Strengthen Everyday Security Habits
Work together to review and enhance essential security measures. You can assist your aging loved one in setting up account alerts, creating strong passwords, and enabling two-factor authentication on financial and social media accounts to help bolster protection against potential scams.
4. Act Quickly If Something Feels Wrong
If financial exploitation or fraud is suspected, contact the financial institution involved as soon as possible. Depending on the situation, it may also be appropriate to contact local Adult Protective Services, law enforcement, or other relevant agencies.
Conclusion
Financial security in older age is not an isolated effort. By combining proactive self-defense with active family support, families can potentially reduce the risk of exploitation and help preserve both the financial well-being and legacy of older adults.
Financial exploitation is a difficult topic, but avoiding it can leave aging loved ones more vulnerable. The conversation does not have to be frightening or accusatory. It can be framed as part of a broader caregiving plan: staying organized, preparing for the unexpected, and making sure trusted people are ready to help if needed.
For more helpful content delivered directly to your inbox, sign up for our newsletter at the bottom of the page.
Marshall Clay CFP, J.D., is a Partner and Senior Advisor at The Welch Group, LLC, specializing in providing Fee-Only investment management and financial advice to families throughout the United States. Marshall is a graduate of the United States Military Academy in West Point, New York, the Cumberland School of Law in Birmingham, Alabama, and is a CERTIFIED FINANCIAL PLANNER™. In addition, Marshall is a frequent guest on local television stations as an expert on various financial planning matters.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Welch Group, LLC [“Welch”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, no portion of this discussion or information serves as the receipt of, or a substitute for, personalized investment advice from Welch contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Welch To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Neither Welch’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if Welch is engaged, or continues to be engaged, to provide investment advisory services. Welch is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Welch’s current written disclosure Brochure and Form CRS discussing our advisory services and fees is available for review upon request or at www.welchgroup.com. Please Note: Welch does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Welch’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a Welch client, please contact Welch, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
IMPORTANT VIDEO DISCLOSURE INFORMATION
The video segment by The Welch Group, LLC (“Welch) was intended for general information purposes only. No portion of the video serves as the receipt of, or as a substitute for, personalized investment advice from Welch or any other investment professional of your choosing. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy, or any non-investment related or planning services, discussion or content, will be profitable, be suitable for your portfolio or individual situation, or prove successful. Neither Welch’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if Welch is engaged, or continues to be engaged, to provide investment advisory services. Welch is neither a law firm nor accounting firm, and no portion of its services should be construed as legal or accounting advice. No portion of the video content should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Welch is engaged, or continues to be engaged, to provide investment advisory services. Copies of Welch’s current written disclosure Brochure and Form CRS discussing our advisory services and fees are available upon request or at www.welchgroup.com.