As our loved ones get older we need to be more proactive in protecting them from the growing trend of elder financial abuse. The majority of elder financial abuse is committed by family members and caregivers, but there is a growing trend for strangers to target the elderly.
What is elder financial abuse? Abuse is defined in the Illinois “Elder Abuse and Neglect Law” as “causing any physical, mental or sexual injury to an eligible adult, including exploitation of such adult’s financial resources”. Elder financial abuse is a crime which may involve financial exploitation – the misuse or withholding of an older person’s resources to the disadvantage of the elderly person and/or the profit or advantage of another person. Elder abuse can also be in the form of fraud – using deception, trickery, false pretence, or dishonest acts or statements for financial gain.
Some examples of elder financial abuse by strangers:
- Grandparent scams – a “grandchild” calls in need of emergency funds
- Nigerian money offer scams – letters or emails from someone in a foreign country offering a large amount of money if you help them transfer money out of the country via your bank account
- Tax refund loans – offering an earlier tax refund for a high fee
- Bank examiner/auditor scam – a phone call from the bank needing your account number to help them catch a dishonest teller or other employee
- Telemarketing calls – using deception, exaggerated claims, etc. to get credit cards numbers or cash
How do we help?
First we need to know about loved ones financial situation. Discussing finances with our parents can be difficult. Some parents do not want their children to know about their financial situation. Others just do not want to talk about it. One way to get started is to explain that in order to help them, especially in the case of an emergency, you need to know where their important documents are located; i.e. wills, birth certificates, medical insurance, house title, etc. This often opens the door to more in depth discussion in the future.
You also need to educate with your parents about the scams and other situations where they might be taken advantage of. Remember, their generation is much more trusting of others. They grew up in a time when your word and a hand shake were all you needed to close a deal.
If you live close by it will be much easier to monitor bank accounts, credit cards, mail, etc. for unusual withdrawals, payments, requests. You also could monitor their accounts via on-line banking. If you do not live close by or you do not have the time you might consider hiring a Daily Money Manager to assist your parent. Daily Money Managers (DMMs) provide personal financial assistance to clients who have difficulty in managing their personal monetary affairs. The services meet a continuum of needs, from organizing and keeping track of financial and medical insurance papers, to assisting with check writing and maintaining bank accounts. DMMs work with senior citizens, people whose careers make it difficult for them to find time for their own paperwork, and with people whose medical issues simply make it difficult to keep up with their finances, among others. It is not uncommon for the adult child of an older person to seek the assistance of a DMM if the child does not feel they have the time or ability to maintain their parents’ affairs. To locate a DMM in your area visit the American Association of Daily Money Managers website at www.aadmm.com.
Terri F. Thompson
Details Management LLC
