This article is reprinted with permission from Esq. Wealth Management, Inc.
At EsqWealth, we understand that our clients are not only concerned about their own financial security but also the financial well-being of their aging parents and family members. The digital age has brought about a revolution in the way we manage our finances, offering convenience and efficiency. However, it has also introduced new risks, particularly for our senior population who may not be as tech-savvy. They are more susceptible to various forms of financial abuse such as phishing attempts, fraudulent lotteries, or exploitation by deceitful caregivers. These threats are not only becoming more prevalent but also more sophisticated.
Our team at EsqWealth, is committed to mitigating these risks. We believe in empowering our clients and their families with knowledge and tools to protect their loved ones. Here are five strategies we recommend:
- Promote Open Discussions: Prevention begins with awareness. At EsqWealth, we encourage families to have regular conversations about the different forms of financial abuse. This proactive approach educates seniors and fosters a supportive environment where they can voice their concerns. Sharing news stories, articles, or attending workshops on financial scams can be part of these discussions. We can also provide resources and materials to our clients to facilitate these discussions.
- Simplify Financial Management: Streamlining finances can significantly assist seniors in managing their money. This could involve reducing the number of credit cards, consolidating bank accounts, and setting up automatic bill payments. Simplification allows seniors to track and monitor their finances more effectively, reducing the risk of unnoticed fraudulent activity. At EsqWealth, we can provide personalized advice and assistance in this process.
- Monitor Finances Regularly: Consistent review of financial statements for suspicious activity is crucial. Unusual withdrawals or transfers, missing deposits, odd charges, and changes in spending patterns are key warning signs. Setting up alerts for these activities is beneficial. Seniors can designate trusted individuals—family members, friends, or a family lawyer—to receive these alerts. This network of trusted contacts ensures that if the senior misses something, someone else can catch it. Our team at EsqWealth can assist in setting up these alerts and monitoring systems.
- Secure Legal Documents: It’s essential to ensure that all legal documents (such as wills, trusts, and powers of attorneys) are regularly updated and securely stored. Our team at EsqWealth can assist with periodic reviews to maintain their relevance and understanding. Access to these documents should be limited to a few trusted individuals, while keeping the rest of the family informed about their existence and location.
- Exercise Caution in Sharing Information: We emphasize to our clients the critical importance of never sharing personal information, such as Social Security numbers, account numbers, or other financial details, over the phone unless they initiate the call. This is vital in preventing identity theft. We can also help educate seniors about scammers’ tactics, such as creating urgency or using threatening language, to prevent them from being manipulated into divulging sensitive information.
In addition to these strategies, we at EsqWealth believe in the power of community. We encourage our clients to reach out to local senior centers, law enforcement agencies, and financial institutions that often have programs and resources to help protect seniors from financial abuse. We also recommend our clients to consider professional services that specialize in daily money management for seniors. These professionals can help with paying bills, balancing checkbooks, and managing investments, providing an extra layer of protection.
By implementing these strategies, we not only protect our seniors from financial predators but also empower them with the confidence and tools to manage their finances safely. In doing so, we ensure that their golden years are marked by peace and security, rather than uncertainty and risk.
The information above is not intended to and should not be construed as specific advice or recommendations for any individual. The opinions voiced are for general information only and are not intended to provide, and should not be relied on for tax, legal, or accounting advice. To discuss specific recommendations for any unique situation, please feel free to contact us.