According to the FBI's Elder Fraud Report 2023, the elderly are over five times more likely to report falling victim to a financial crime. Those scams can be incredibly costly, too.
Last year, the average victim of elder fraud lost $33,915 to scammers — with investment scams alone costing elderly individuals a combined $1.2 billion in 2023.
Fortunately, there are a range of actions you can take to protect your parents from scammers.
For example, partnering with a secure digital vault like Trustworthy enables you to protect your parents’ financial documents with bank-level encryption and keep them organized for the future — all while ensuring you have access to these crucial documents in case your parents need a helping hand.
We’ll talk more about Trustworthy in just a minute. First, let’s run through some common financial scams and how to avoid them.
To help you get started, we sat down for a Q&A session with Seth Persily, managing attorney at the Georgia-based law firm Persily & Associates and founder of Elite Litigators, a digital legal directory.
A cum laude graduate of Harvard Law School, Persily has a wealth of experience working as a criminal attorney, and his law firm specializes in complex plaintiff-side multidistrict litigation.
Read on to get his pro tips, learn about best practices, and explore different strategies to safeguard your parents’ assets from fraudsters.
Key Takeaways
Common financial scams that target the elderly include phishing emails, phone calls from criminals claiming to be the IRS, prize scams, and romance scams.
Regularly check elderly parents’ bank or credit card statements and set up fraud alerts so you’re notified immediately when a suspicious transaction takes place.
Enlisting the help of a financial advisor or an attorney can help safeguard assets and help set up legal protections like a power of attorney or a trust.
What Types of Financial Scams Target the Elderly?
Answer: From my experience as a criminal attorney, some of the most common scams targeting the elderly include phishing emails, phone calls claiming to be from the IRS, lottery or prize scams, and even romance scams.
Scammers prey on the elderly's sense of trust and vulnerability, often using emotional manipulation to gain access to their finances. These scams often lead to identity theft or the unauthorized withdrawal of funds from their bank accounts.
What Are the Signs Your Parent May Be a Target?
Answer: You’ll notice changes in their financial behavior. If your parent suddenly makes large withdrawals, seems confused about new financial accounts, or mentions unfamiliar people asking for money, these are major red flags.
Also, if they start receiving strange bills, express anxiety over unpaid taxes, or talk about winning a prize they didn’t enter, these can be signs they’ve been targeted.
How Can You Educate Your Parents About Financial Scams?
Answer: It’s crucial to have open, honest conversations. I always recommend explaining how these scams work, giving examples, and making them aware of how sophisticated scammers can be.
Show them what a phishing email looks like, or explain how no legitimate organization will ask for personal details over the phone. I’ve found that educating them about the "too good to be true" rule can be very effective.
What Can You Do to Monitor Potential Fraud?
Answer: Most banks and credit card companies offer fraud alerts that can be easily set up, and these should be enabled for all their accounts. You can also use credit monitoring services that notify you when there’s suspicious activity on their accounts.
In my experience, this is a simple but effective way to catch potential fraud early and prevent further damage.
When and How Should You Review Your Parent's Finances?
Answer: Regular reviews of these statements are key. I advise my clients to check for any unusual or unauthorized transactions.
This isn’t just about catching big withdrawals — small, consistent amounts can indicate fraud, too. Staying on top of these records helps spot issues early and can prevent long-term financial damage.
What Can You Do to Protect Online Accounts From Scammers?
Answer: Weak passwords are an easy way for scammers to access online accounts. I always suggest creating strong, unique passwords and using a password manager if needed.
Setting up two-factor authentication can add an extra layer of security. Ensuring your parent understands this and assisting them in setting it up can prevent unauthorized access.
What Should You Do if Your Elderly Parent Has Been Scammed?
Answer: If your parent has fallen victim to a scam, it’s important to act quickly.
Contact their bank or credit card company to freeze the accounts and report the scam to the local authorities and the FTC. If the scam involves identity theft, I also recommend contacting credit bureaus to place a fraud alert on their credit reports.
Can You Use a Power of Attorney to Protect Parents’ Finances?
Answer: A power of attorney gives you or another trusted person legal authority to manage your parent’s finances, which can help you oversee and protect their assets.
I always advise families to set this up early, especially if there are concerns about cognitive decline. This allows you to monitor transactions, make decisions in their best interest, and prevent them from being financially exploited.
How Do You Reduce Scam Attempts on Your Parents?
Answer: Blocking robocalls and spam emails can drastically reduce scam attempts.
There are apps that can block these calls, or you can register your parent’s number on the National Do Not Call Registry.
For emails, ensure their spam filters are set up correctly and help them identify phishing attempts. In my experience, teaching them not to click on suspicious links or share personal information online is key.
When Should You Get Professional Help With Your Parents' Finances?
Answer: If your parent shows signs of confusion with their finances, or if they’ve already fallen victim to a scam, it’s time to seek professional help.
A financial advisor can help safeguard their assets, and an attorney can assist with setting up legal protections like a power of attorney or a trust. Acting early ensures their finances are better protected from potential exploitation.
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Protect Your Parents’ Financial Information Using Trustworthy
When it comes to “acting early,” one of the easiest and most effective steps you can take to protect your parent’s financial information is to connect them with a platform like Trustworthy.
Trustworthy's unique Family Operating System® that enables families to upload important documents and create ultra-secure digital versions. You can support your parents in uploading everything from IDs and insurance policies to retirement information, contracts, bank statements, and everything in between.
From there, all of their digital documents are kept under lock and key thanks to robust password recipes, two-factor authentication (including hardware keys), and bank-level AES 256-bit encryption.
That being said, controlled access can be granted to collaborators — enabling your parents to share access to important documents with you, their attorney, or financial planner.
Better yet, you can also arrange to work with Trustworthy Certified Experts™ to help your parents upload their documents, get advice, and come up with strategies to stay organized and keep their financials safe.
Ready to learn more? Find out how Trustworthy can help you work with your parents to ensure their important information is protected.
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Trustworthy is an online service providing legal forms and information. We are not a law firm and do not provide legal advice.
