Caregiver’s Corner: 8 Signs of Financial Abuse

A couple years ago, my mom’s retirement community called to tell me that she was getting scammed. A caregiver overheard her giving out her social security number over the phone and reported it. I am so grateful to this day to that nameless caregiver who may have saved her financial life.

My mom had started showing some later stages of dementia at this point, and that was when I decided she probably shouldn’t have a cell phone anymore. We talked about it, and she agreed it would be ok to let go of that.

I immediately started locking down her credit and social security, securing her bank account, and changing all of her passwords. It took days, but it was time very well spent.

Financial abuse is scary for all of us: scammers are ruthless and heartless, and often completely anonymous thanks to the web.

(BTW: if you haven’t seen the Mission: Impossible-style movie Thelma, about a senior who fights back against a scammer, it’s fun and I highly recommend it!)

For vulnerable adults, particularly those with dementia, it is shocking just how easily a scoundrel can take everything they have.

There are signs you may observe that should put you on your guard when helping your loved one. These may not be comfortable conversations, but I can tell you from my first-hand experience that they are critical. Be on the lookout for:

1. Sudden or unexplained financial activities

   1. Are there large or frequent withdrawals, especially from previously inactive accounts?

   2. Have new joint accounts been created, especially unexpectedly, including credit cards?

   3. Are you seeing unpaid bills or checks returned due to insufficient funds?

2. Are there unexpected discrepancies or missing items? Jewelry or collections gone AWOL? Unexplained charges, transfers, or bill payments?

3. What about sudden document changes? Do you see revisions (especially secretive ones) to wills, trusts, POAs, etc? Are signatures showing up that look forged?

4. Is there sudden and undue influence from someone? Perhaps there is a new “best friend,” significant other, or other companion suddenly taking control of finances and attending money meetings? Are family members or caregivers doing unauthorized transactions?

5. Deprivation of necessities: are basic needs and expenses going unmet or unpaid even though there is ample funding? Are bills overdue or utilities disconnected?

6. Do you see behavior or cognitive warning signs? Perhaps your loved one is unaware of or confused about their finances. Do they avoid conversations about money, get unduly distressed, or show a sudden lack of interest?

7. Redirection of documentation: are documents and statements being rerouted to someone else so that you and your loved one cannot see transactions?

8. Are you seeing scams for bills or unnecessary services? Perhaps they have been targeted by scammers posing as charities, investments, or tech support. Are they giving money to a supposed significant other? Have they purchased services they didn’t ask for or know about?

📰 Know Your Scams and Scums 📰

• Elder Fraud (FBI): this resource from the Federal Bureau of Investigation breaks down the specifics of many of the most common current scams. Do you know about the “Grandparent Scam”? How about the “Home Repair Scam”? Find out at this link.

• Common Scams That Target Seniors (Senior Living): another great site with even more scams. Learn about the “Pigeon Drop” and the “Fake Accident,” and get more info on ways to avoid these scams and apps that help protect your loved one.