Talking to Older Loved Ones About Financial Scams

Common Signs of Elder Financial Fraud

Being aware of the warning signs can help you detect fraud before it’s too late. Pay attention if your parents exhibit unusual banking activity, such as large withdrawals, sudden transfers, or unfamiliar charges on their accounts. If a new “friend” or caregiver becomes overly involved in their finances, it may be a red flag. Signs of confusion about financial matters, including trouble remembering transactions or struggling with bill payments, could indicate exploitation.

Be cautious if your parents make unexpected changes to legal documents, such as their will, power of attorney, or beneficiaries. Scammers often pressure victims into making quick financial decisions, so take note if your parents seem rushed into transactions. Additionally, if they suddenly have unpaid bills or receive frequent calls from strangers asking for money, ask them about it.

How to Help Protect Your Parents

If you notice any of these warning signs, acting quickly can help prevent financial exploitation. Start with an open conversation, approaching the topic with care and reassurance to avoid making them feel embarrassed or defensive. Talk to them about common scams, such as IRS or Social Security impersonation calls, fake tech support schemes, grandparent scams, sweepstakes fraud, and romance scams. That can help them recognize threats before falling victim. The Federal Trade Commission (FTC) and AARP Fraud Watch Network provide valuable information on identifying scams.

Offer to help set up financial safeguards for additional protection. Make sure they know how to regularly monitor their bank accounts and set up alerts for unusual transactions. Reduce the risk of check fraud by ensuring Social Security and pension payments are deposited directly into their accounts. Review legal documents with an attorney to make sure that power of attorney, wills, and trusts are secure and updated. If they are unlikely to apply for new credit, suggest a freeze on their credit reports to prevent scammers from opening fraudulent accounts. Register their phone numbers on the National Do Not Call Registry to reduce the number of scam calls they receive.

Encourage safe technology practices. Help them recognize phishing attempts by advising them never to click on links from unknown senders. Help them understand how strong, unique passwords and multi-factor authentication on important accounts can add another layer of security. Caution them about sharing personal information online to further reduce their exposure to scams.

If you suspect fraud, take immediate action by contacting their bank or credit card provider to report unauthorized transactions. Report scams to the FTC or the Consumer Financial Protection Bureau. In some cases, you may also want to reach out to the local adult protective services agency for additional support.