Billions of dollars are lost to financial scams every year, and seniors are particularly at risk. One widely cited study found that older Americans lose $36 billion a year to elder financial abuse. This includes exploitation, fraud and trust abuse.
It’s scary to think about. A time in life when people have the most assets under their care, is also the time that aging begins to take its toll on their bodies and their cognitive abilities. The legions of individuals actively preying on seniors to take advantage of them seems to be growing exponentially. What can you do?
Marketplace offers tips on how to best protect yourself and loved ones from scammers in its article “Concerned about financial scams? Here’s your guide.”
Stay in touch with family members, especially if they have lost loved ones to death or divorce. Isolation makes seniors vulnerable to scammers.
Try not to be judgmental and be empathetic, if someone reveals that they have been scammed. Seniors who have been scammed are embarrassed and fearful.
Talk about the scams that you have heard about with loved ones. They may not know about the scams, and this may give them better awareness when the call comes.
If anyone in the family calls with an urgent request for money—often about a grandchild who is in trouble overseas or a fee for a prize that needs to be claimed immediately—pause and tell them that you need time to consider it.
Don’t send or wire money to anyone you don’t know. Gift cards from retailers, Google Play, iTunes or Amazon gift cards are often used by scammers to set up fraudulent transactions.
Once one scammer has nailed down contact information for a victim, they are more likely to be contacted by other scammers. If a loved one is getting calls at all hours of the day, they may be on a list of scam prospects. Consider changing the number, even though that is a hassle. The same goes for email addresses.
You can prevent scams, by talking with people you trust about your financial goals. Talk with an estate planning attorney about creating an advance medical directive and medical power of attorney, then do the same for finances. A power of attorney for your finances allow someone who you know and trust to make financial decisions for you, if you become incapacitated, by illness or injury.
There are different powers of attorney:
General: A designated person can control parts of your financial life. When you return to normal functioning, the power of attorney ends.
Durable: This power of attorney remains in effect, if you become incapacitated.
Springing: This power of attorney is triggered by a life event, like the onset of dementia, an accident or disease, makes you mentally diminished or incapacitated. Certain states do not permit this type of power of attorney, so check with your estate planning attorney.
Reference: Marketplace (May 16, 2019) “Concerned about financial scams? Here’s your guide”
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