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Financial Protection Checklist

A comprehensive guide to protect your elderly loved one from financial exploitation and fraud

Understanding Financial Exploitation

Financial exploitation of older adults is a growing problem. It can come from strangers through scams and fraud, or from family members, caregivers, and other trusted individuals. Understanding the risks is the first step in prevention.

Common Types of Financial Exploitation

Phone and Email Scams

Fraudulent calls claiming to be from government agencies, banks, or tech support. Common examples include IRS scams, grandparent scams, and lottery/sweepstakes scams.

Identity Theft

Stealing personal information to open accounts, make purchases, or claim benefits in the victim's name.

Financial Pressure from Others

Family members, caregivers, or "friends" pressuring for money, loans, or control over finances.

Investment Fraud

"Too good to be true" investment opportunities with high-pressure tactics and promises of unrealistic returns.

Preventive Measures Checklist

Account Monitoring and Security

  • Set up account alerts

    Arrange for notifications for large withdrawals, unusual activity, or when account balances fall below a certain threshold.

  • Regularly review financial statements

    Check bank statements, credit card bills, and investment accounts monthly for unauthorized transactions.

  • Set up direct deposit

    Ensure that income sources like Social Security and pension payments are directly deposited into accounts.

  • Consider automatic bill payments

    Set up automatic payments for regular bills to prevent missed payments and reduce the need to handle checks.

Credit Protection

  • Consider credit freezes

    Freeze credit reports with all three major credit bureaus (Equifax, Experian, and TransUnion) to prevent new accounts from being opened.

  • Set up fraud alerts

    Place fraud alerts on credit reports to require additional verification before new credit is issued.

  • Regularly check credit reports

    Review credit reports from all three bureaus at least annually (available free at annualcreditreport.com).

Communication Protection

  • Register for Do Not Call lists

    Add phone numbers to the National Do Not Call Registry (donotcall.gov) to reduce telemarketing calls.

  • Opt out of prescreened credit offers

    Visit optoutprescreen.com to stop receiving prescreened credit and insurance offers in the mail.

  • Use a call-blocking device or service

    Consider installing a call-blocking device on landlines or using call-blocking features on mobile phones.

  • Establish communication protocols

    Create a family code word or phrase to verify legitimate family emergency calls.

Legal Protections

  • Establish a durable power of attorney

    Designate a trusted person to make financial decisions if your loved one becomes unable to do so.

  • Consider a revocable living trust

    Create a trust with a designated trustee to manage assets and provide oversight.

  • Add a trusted contact to financial accounts

    Designate someone financial institutions can contact if they suspect fraud or exploitation.

  • Consider representative payee arrangements

    For Social Security or other government benefits, a representative payee can be appointed to manage these funds.

Warning Signs of Financial Exploitation

Be alert for these potential indicators of financial exploitation:

  • Unexplained withdrawals, transfers, or changes in financial accounts

  • Unpaid bills, eviction notices, or utility shutoffs despite adequate income

  • Missing belongings or valuables from the home

  • Suspicious changes to wills, powers of attorney, or other financial documents

  • Unusual financial activity, such as large withdrawals or new joint accounts

  • Signatures on documents that don't resemble the older adult's signature

  • Sudden appearance of previously uninvolved relatives claiming rights to assets

  • Unexplained changes in spending patterns or lifestyle

What to Do If You Suspect Financial Exploitation

  1. Document everything

    Keep detailed records of suspicious activities, including dates, amounts, and people involved.

  2. Report to Adult Protective Services (APS)

    Contact your local APS office to report suspected elder financial abuse.

  3. Contact law enforcement

    File a police report, especially in cases of theft, fraud, or other criminal activity.

  4. Notify financial institutions

    Alert banks, credit card companies, and investment firms about suspected fraud or exploitation.

  5. Consult with an elder law attorney

    Get legal advice on protective measures and potential legal actions.

  6. Contact the Long-Term Care Ombudsman

    If your loved one is in a nursing home or assisted living facility, the ombudsman can investigate complaints.

  7. Report to the Federal Trade Commission (FTC)

    File a complaint at ReportFraud.ftc.gov for scams and fraud.

Important Resources

  • Adult Protective Services

    Find your local APS office: eldercare.acl.gov or call 1-800-677-1116

  • National Elder Fraud Hotline

    1-833-FRAUD-11 (1-833-372-8311)

  • Federal Trade Commission

    ReportFraud.ftc.gov or call 1-877-FTC-HELP

  • National Center on Elder Abuse

    ncea.acl.gov

  • AARP Fraud Resource Center

    aarp.org/money/scams-fraud