By Henry Zupko, MBA, CFP®
For years, older adults have been losing money to scams or people they once trusted. In fact, elder financial abuse siphons off more than $28 billion a year, and around 1 in 6 people age 60 and older are victimized in some way, often without them even realizing it’s happening.
At Tranquility Path Investment Advisors, we recognize that aging brings not only new opportunities but also new risks, including the possibility of financial exploitation. We are committed to helping you stay informed, safeguard what you’ve built, and make decisions with greater confidence at every stage of life. This article shares some simple, practical ways to recognize the warning signs, protect your finances, and maintain control as you age.
Common Forms of Elder Financial Abuse
Elder financial abuse can take many different forms. Sometimes financial abuse is more subtle:
- Money vanishing from your account
- A check you never wrote
- A new credit card you didn’t open
Other times, it’s more straightforward, like valuable items disappearing from your home, or someone insisting you sign legal documents you don’t entirely understand.
Some warning signs you need to watch out for include:
- Unexplained withdrawals of cash or transfers of money
- New loans or credit accounts opened under your name
- Bank balance changing suddenly
- Changes to legal documents made without your knowledge or consent
- Someone else signing and cashing checks
Any of these signs could be an indication that someone is trying to exploit your trust.
Who Commits Financial Abuse Against Seniors?
Financial abuse often comes from people you know and even love. Most elder financial abuse cases are perpetrated by family members, typically adult children, followed by grandchildren and nieces or nephews. They might:
- Empty joint bank accounts.
- Make a promise to provide care in exchange for money or property and then vanish.
- Just take what isn’t theirs, confident you won’t notice or speak up.
Isolation often leaves seniors more vulnerable, particularly when someone appears to help or provide companionship but wants something in return.
Preventive Strategies for Seniors
Here are a few simple but powerful steps you can take.
Build a Trusted Circle
Find someone you trust completely, like a friend, family member, or advisor. While they don’t need full access to your accounts, they should be someone who can assist you if something doesn’t feel right.
For instance, if you have close family members you trust, involve them in your financial planning. Having regular family meetings to discuss major financial decisions or changes to accounts can help keep things open and make it more difficult for anyone to act in secret.
Lock Down Your Personal Information
Here’s how to guard your personal and financial information:
- Shred old bank statements, medical bills, or anything with sensitive information.
- Avoid giving account numbers, passwords, or your Social Security number to someone who calls you out of the blue.
- Use different strong passwords for each of your accounts.
- Enable two-factor authentication on your financial accounts, if possible.
These simple precautions can make a big difference in shielding your information and, ultimately, enjoying a comfortable retirement.
Stay Social and Connected
The more isolated you are, the more likely you are to be vulnerable. A lot of elder financial abuse takes place behind closed doors, especially when no one else is around. That’s why being socially active matters. Consider signing up for a club, checking out your local senior center, or just picking up the phone and calling a friend.
Regular social contact means more eyes and ears looking out for you, and more people you can call if something doesn’t seem right.
Work With Financial Professionals Who Understand Elder Financial Abuse
A trusted financial advisor can be one of your strongest lines of defense against elder financial abuse. They can work with you on creating a plan that safeguards your assets, assures your wishes are respected, and makes it more difficult for others to exploit you. At Tranquility Path Investment Advisors, we understand the unique challenges that come with aging, including the increased risk of financial exploitation. That’s why we’re committed to helping you protect your hard-earned savings, maintain your independence, and enjoy the retirement you deserve.
If you have concerns about protecting your finances as you age or simply want a second set of trusted eyes on your financial plan, we invite you to schedule a no-obligation conversation with us or call (908) 759-6322 to get started.
