Preventing Elder Financial Abuse

Elder Financial Exploitation is defined by the Financial Crimes Enforcement Network as the illegal or improper use of an older adult’s funds, property, or assets for another’s personal benefit. Unfortunately, scammers or a trusted individual known to the elderly are often the perpetrators. Elder financial abuse is frequently devastating to victims due to their limited ability to recoup financial losses. Staying alert to unusual activity and reporting concerns promptly is vital to detecting and preventing elder financial abuse.

Here are a few tips individuals can follow to help prevent elder financial abuse. Regularly check your financial accounts. Being able to detect unauthorized activity or irregularities is an important first step in preventing abuse. 

• Be aware of scammers, and don’t let the shame of falling for a scam prevent you from seeking help. In today’s digital world, scamming has become easier for criminals. Scammers prey on emotions and overwhelm victims to cloud their judgment. They often pressure individuals into handing over money quickly for reasons such as paying a fine, collecting a prize, protecting a loved one from harm, or repaying an alleged overpayment the victim “received.” If you feel pressured or uncomfortable for any reason, hang up. Scammers will try to keep you on the phone until they get what they want.
• Legitimate companies rarely call unexpectedly to resolve issues. If someone claims to represent a government agency or business and you want to verify the situation, end the call, and independently look up the organization’s phone number. Most legitimate phone numbers are widely available online, on the back of a credit card, or on an official statement. Reach out to someone you trust to discuss the situation before taking action or sending money. 

Avoiding isolation is critical in preventing all forms of abuse, especially elder financial abuse. Check in regularly with others and allow others to check in on you. If you do not have a trusted individual, consider partnering with your bank to add an extra layer of oversight for suspicious activity.

For family members and friends, there are ways to help detect elder financial abuse as well. Watch for changes in behavior or financial patterns. These may include a new “friend” accompanying the individual to the bank, ATM withdrawals by someone who has never used a debit card, or signs of confusion, fear, or lack of awareness. Establishing a trusting relationship with your loved one helps ensure they feel comfortable discussing potential scams or abuse. This relationship also allows opportunities to educate them about common scams and the importance of verifying requests for personal information or money.

If you believe you or someone you know may be a victim of elder financial abuse, contact the individual’s bank and the State’s Adult Protective Services Department. Elder financial abuse is a growing concern, with billions of dollars lost annually. However, with the right preparation and support, we can help protect one another.

Germantown Trust & Savings Bank is proud to serve our neighbors with trusted, local banking and a commitment to protecting what matters most. If you or a loved one have concerns about suspicious financial activity, our experienced team is here to help. Stop by one of our locations in Breese, Germantown, Bartelso, or Beckemeyer, or visit us at www.gtsb.com to see how a strong banking relationship can add an extra layer of protection and peace of mind.