When most people think of elder abuse they often picture physical or emotional harm. However, financial exploitation is another form of abuse that can be just as harmful to the victims and its extent is more widespread than many realize. According to the National Council on Aging (NCOA), the annual losses of older adults who are victims of financial abuse are over $28 billion. Yes, that’s each year, on average.
While elder abuse rights are protected in law, making it illegal to exploit, defraud, or steal from older adults, unfortunately scammers still try to take advantage of them for their own gain. Below are some tips to help you protect your elderly loved ones from financial scams, so their hard-earned savings and assets stay out of the wrong hands.
Be Aware of the Latest Scams
Scammers are always coming up with new ways to exploit others. It’s terrible but true. Their strategies are often increasingly sophisticated and hard to detect. By staying informed about the latest scams you can help protect your loved ones from falling victim to these fraudulent schemes.
These schemes are often announced on the news or through investigative journalism programs or consumer rights programs. For instance, Grandparent Scams are a popular way for scammers to impersonate upset family members, such as grandchildren, in need of urgent financial help. These schemes are particularly bad as they play on the victim’s emotions to get money from them. That’s taking advantage of someone’s kindness, for sure.
By making your loved ones aware of schemes like this, they can be more alert to potential scams of these kinds. Knowledge is power, as the famous saying goes.
Implement Two-Factor Authentication (2FA)
Two-factor authentication (2FA) is a powerful security measure that can help protect your loved ones from online scams. It works by adding an extra layer of security to their accounts by requiring a password and also a second form of verification. That second form could be a code sent to their mobile phone or email. The idea is the extra step makes it much harder for unauthorized users to gain access and control of the respective accounts.
Encouraging your elderly loved ones to use 2FA on accounts, such as their online banking, email, and investment accounts, can help prevent unauthorized access by scammers. That significantly reduces risks to your elderly relatives of fraud and identity theft.
Set Up Alerts
Another valuable tip is to set up fraud alerts and credit monitoring for older loved ones. These alerts notify financial institutions if there are any suspicious activities or attempts to open new accounts in their name. That makes it much harder for scammers to successfully carry out their intentions.
By enrolling in credit monitoring services, you can also help track changes to credit reports and receive early warnings of any unauthorized activity. These activities could include new credit inquiries or accounts being opened in your loved ones’ names.
These services can provide your loved ones with protection and help detect fraud early. That allows you all to take quick action, if needed.
Conclusion
Following these suggestions can significantly reduce the risk of your elderly loved ones being successfully targeted by scammers. All to ensure their financial security and peace of mind for the family.