Watch Out for Elder Financial Abuse
June 22, 2009 by Miranda Marquit
Filed under Finance
Regularly, my dad has to go through my grandpa’s mail and discard the many offers and “awards” that he receives. Additionally, scams (including one that is aimed at seniors receiving a bonus through Social Security ) are often aimed at our elders. It is vital that you pay attention to what is going on in your own family . The California Society of CPAs points this out about the desirability of seniors for scam artists :
Con artists can use hard-core social influence tactics to take them in, both on the phone and in person. The oldest generation in any family is vulnerable to scammers for a variety of reasons , none of which necessarily have to do with their mental competence. They’re typically home during the day – a prime time for con artists. Once they give up the financial security a paycheck provides, and begin living off the wealth they’ve accumulated for retirement, they are naturally mindful that the money has to last. This makes them more susceptible to investment schemes and the con artists who sell them on this fear. In addition, con artists target seniors because that’s where the cash is.
And, of course, one can’t forget scams and other schemes that come through the mail. One of the most blatant is one in which a check appears in the mail and is cashed. Unfortunately, cashing this check constitutes entering into an agreement that a certain amount of money will be removed from your account , either all at once, or in monthly installments. Investment schemes are also worrisome, since it preys on seniors’ concerns about how long the money will last.
Protecting your elders from these kinds of schemes can be difficult, especially since you do not want to seem patronizing or distrustful of your parents’ or granparents’ abilities with money at this point. Before you talk to your elders about money, consider these good points offered by Money Energy :
- Understand that their decisions are their own . You can warn your elders about scams, and help them with their finances, but unless they are declared incompetent, you have to realize that it is still their money.
- Make sure you understand the line between “helping” and “controlling” .
- Respect others’ boundaries .
- Examine your own position . Are you really in a place that qualifies you to be giving this sort of help?
Image source: U.S. government via Wikipedia.
I had to do this with my mom, as she developed Alzheimer’s, go through her mail and toss out all the solicitation. I also was concerned she might fall for some scheme from someone who came to her door. She never would have been susceptible before her Alzheimer’s years, but she seemed to think everyone else but me knew what was best.
My father-in-law, a very intelligent man financially throughout his life, also began to fall for scams, so one of his sons had to take over his finances. Fortunately Dad had given him power of attorney.