Protecting Older Adults from Financial Exploitation: What Seniors and Families Should Know
National Grandparents Day, happening every year on the first Sunday after Labor Day, is an opportunity to celebrate the older adults who have helped shape our families and communities. It’s also a good time to raise awareness about an issue that can have a devastating impact on older Americans: financial exploitation.
According to the American Bankers Association (ABA), elder financial exploitation is the illegal, unauthorized, or improper use of an older person’s money, property, or assets. It can threaten not only a person’s financial security but also their independence and overall well-being.
Unfortunately, the person responsible isn’t always a stranger. Financial exploitation can involve family members, friends, neighbors, caregivers, business associates, health care providers, or scammers the victim has never met.
Understanding the warning signs and taking a few proactive steps can help older adults and their families better protect their finances.
What Does Elder Financial Exploitation Look Like?
Financial exploitation can take many forms. In some cases, a scammer may contact an older adult by phone or online and attempt to convince them to provide personal information or send money. In others, someone the victim knows and trusts may improperly gain access to accounts or pressure the person into making financial decisions.
Because every situation is different, recognizing unusual changes in financial activity or behavior can be an important first step.
Warning Signs Family and Friends Should Watch For
Family members and trusted friends can play an important role in recognizing potential financial exploitation.
The ABA recommends watching for changes in an older adult’s normal financial habits or behavior. Some potential red flags include:
- Large, frequent, or unexplained withdrawals
- Transfers between accounts that the individual cannot explain
- Sudden unpaid bills or insufficient funds
- Unexpected attempts to wire large amounts of money
- Suspicious signatures or possible forgery on checks
- Checks written as unexplained “loans” or “gifts”
- Bank statements that suddenly stop being delivered to the individual’s home
- New powers of attorney that the individual does not understand
- A new friend, caregiver, or relative suddenly taking an unusually active role in the person’s finances
- Confusion, fear, embarrassment, or reluctance to discuss financial matters
One warning sign by itself does not necessarily mean financial exploitation is occurring. However, significant or unexplained changes are worth paying attention to and discussing with your loved one.
Steps Older Adults Can Take to Protect Their Finances
Being proactive can make it more difficult for someone to gain unauthorized access to your money or personal information.
Start by protecting sensitive documents. Shred bank statements, receipts, and unused credit card offers before disposing of them, and keep checkbooks, account statements, and other financial information in a secure location.
Be equally cautious about sharing information. Never provide your Social Security number, bank account information, or other sensitive financial details to an unexpected caller. If someone contacts you claiming to represent a trusted company or financial institution, consider ending the call and contacting the organization directly using a phone number you know is legitimate.
The ABA also recommends taking your time before making financial decisions. Be cautious when someone pressures you to act immediately, and ask for information in writing when appropriate. If you don’t understand a financial document or decision, consider seeking a second opinion from a trusted financial professional or attorney before signing anything. And if you have questions or concerns about your Legends Bank accounts, our team is always here to help.
And remember: if something doesn’t feel right, pay attention to that instinct. Scammers and financial exploiters can be convincing, and creating a sense of urgency or trust is often part of their approach.
Know and Monitor Your Accounts
Regularly reviewing your financial accounts can help you identify suspicious activity sooner.
Look through bank and credit card statements and pay attention to withdrawals, purchases, transfers, or other activity you don’t recognize. The sooner something unusual is identified, the sooner you can take action.
Legends Bank also uses fraud detection and monitoring tools designed to help identify potentially suspicious account activity. While these safeguards provide an additional layer of protection, it’s still important to stay aware of your account activity and reach out promptly if something doesn’t look right.
It can also be helpful to build a relationship with your banker. Having a trusted banking professional who understands you and your normal banking habits gives you another resource to turn to when you have questions or something doesn’t seem right. At Legends Bank, our team takes the time to get to know our customers and is here to help if you have questions or concerns about your accounts.
What Should You Do If You Suspect Financial Exploitation?
If you believe you or someone you know may be experiencing financial exploitation, don’t ignore the warning signs.
Contact your bank as soon as possible if you notice suspicious activity or believe your account information may have been compromised. Legends Bank customers can call us at 1-866-391-1925 for assistance.
The American Bankers Association also recommends talking with a trusted family member or friend and, when appropriate, reporting suspected exploitation to local law enforcement, Adult Protective Services, or the FBI’s Internet Crime Complaint Center (IC3).
Your Local Bank Can Be a Resource
Protecting your finances is about more than watching for scams. It’s also about having trusted people you can turn to when you have questions or concerns.
At Legends Bank, we believe relationships matter. Our team is here to help customers understand their accounts, answer questions, and provide a familiar local resource when something doesn’t seem right.
This National Grandparents Day, take a few minutes to talk with the older adults in your life about financial safety. A simple conversation today can help someone recognize a warning sign, ask the right question, or avoid making a costly decision tomorrow.
Your Community Is Our Community.
Source
American Bankers Association, “Protect Older Americans from Financial Exploitation”
https://www.aba.com/advocacy/community-programs/consumer-resources/protect-your-money/elderly-financial-abuse
