The issue of financial exploitation of elders in the United States has been a concern for law enforcement for many years. Despite ongoing public education programs by various organizations, the problem seems to be getting worse. According to the FBI’s annual report, financial elder exploitation has increased by 14% in the last year, with tech support scams being the most common type of fraud reported. This raises the question of whether your own aging parents or loved ones could be at risk.
Many people over 65 are starting to experience a decline in financial judgment and short-term memory, which could be early signs of dementia. However, family members are often hesitant to step in and take over money management, fearing they may offend their aging parents. This leaves the elderly vulnerable to financial abuse, as they may not be able to keep track of their bills or investments. Research suggests that even in the early stages of dementia, financial judgment is already significantly impaired.
It is crucial to educate both elders and their families about the warning signs of financial abuse. Many elderly individuals may dismiss their memory loss as a normal part of aging, not realizing that loss of financial judgment is not a typical age-related issue. Family members need to be proactive in monitoring their loved one’s spending, especially if they spend a significant amount of time on the internet. Having legal authority over an elder’s accounts, such as a Durable Power of Attorney, can help prevent fraud and protect their finances.
To address the increasing threat of elder financial exploitation, family members should have open conversations with their aging parents about common scams and closely monitor their financial activities. By being informed about the tactics used by scammers and having a plan in place to access their elder’s financial information, families can take action to prevent fraud. Ultimately, the key to protecting elders from exploitation lies in proactive communication, education, and oversight of their finances.
