3 tips to help protect older family members from financial scams

Senior woman using mobile phone while holding credit card — People 60 or older lost almost $5 billion last year

(Image credit: Alexandra lakovleva / Getty Images)

Seeing our loved ones age is not always easy, and now there is the added threat of ever-increasing financial scams that they may fall victim to. While fraudsters can and do target people of any age, seniors tend to be particularly vulnerable due to a combination of factors including less tech familiarity, greater amassment of wealth, cognitive decline and, in some cases, isolation.

Just last year, the Federal Bureau of Investigation’s Internet Crime Complaint Center “received nearly 150,000 complaints of cyber-enabled fraud against people 60 or older, with almost $5 billion in losses,” and with the average victim losing around $83,000, said The New York Times, citing the agency’s annual report. Often, it is seniors’ “adult children” who are the “first people to notice when something seems amiss,” but in many cases, “family dynamics can make it difficult to change their behavior.” Here are some tips for how to get through.

1. Open up lines of communication

Have financial conversations openly and candidly with your family members. Creating an environment where you have these talks can make it more likely that your family will give you insight into what is going on with them and their financial situation.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

If that sounds intimidating, remember these conversations can start slowly. “It’s really about just talking. Start with your own situation. You might say, ‘I want an extra set of eyes on my financial accounts. Would you mind getting alerts if something happens? I can do the same for you.’ You make it a two-way street,” said Elizabeth Loewy, the co-founder and COO at EverSafe, an online financial protection and monitoring service, to Fidelity.

Should a concern arise, it is also important to approach the topic with empathy and patience, as you may not make an impact immediately. “Don’t chide or correct, but instead ask questions in a respectful manner,” said the Times. This will also help ensure your elder family member does not stop talking to you going forward.

2. Educate them on the warning signs

Raising awareness can go a long way toward preventing scams from taking hold. Inform your elderly family members of the red flags to watch out for, from requests for personal information to pressure to act quickly, and “explain the types of scams specifically targeting them via channels such as phone calls, emails, text, social media and even letters in the mail,” said J.P. Morgan Wealth Management.

If you think the information would be better received if someone else delivered it, “banks, credit unions and other financial professionals may offer free trainings on how to prevent fraud or manage money,” said the Consumer Financial Protection Bureau.

3. Keep an eye on their accounts — and their cognitive health

Getting looped into your elderly family member’s accounts, whether through receiving unusual account activity alerts or copies of their bank statements, can allow you to keep a better eye on things. Then, if anything looks suspicious, you can stop it before it goes too far.

Beyond accounts, another proactive measure you can take is tracking your relative’s cognitive well-being, as troubles there, even prior to a formal diagnosis, can make people more susceptible to financial fraud. In fact, “one of the first signs of cognitive decline is a change in financial behavior,” said AARP, citing its senior vice president for policy and brain health, Sarah Lock. “You may notice that the person who’s been meticulous in their financial affairs suddenly becomes less so,” said Lock, with issues ranging from unpaid bills to unusual spending cropping up.

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.