Expert advice to protect elderly loved ones from financial abuse
FBI: Typical loss for an elder fraud victim in 2023 was $33,915
(InvestigateTV) — According to the Federal Bureau of Investigation (FBI), elder fraud is a growing crisis, with America’s aging population losing more than $3 billion to scams in 2023.
Ric Edelman, founder of Edelman Financial Engines, warned that the problem isn’t slowing down.
“In the context of financial abuse, elder abuse is the fastest growing area that the FBI is dealing with for the protection of people,” Edelman shared.
He said it is crucial to understand the warning signs and who’s most at risk.
“The reason is simple. We have more old people than ever before! And older people are now today’s wealthiest,” he said. “Today, two thirds of all the wealth in America is owned by people over the ages of 65.”
Scammers often try to exploit conditions like Alzheimer’s and dementia, knowing older adults with these illnesses are especially vulnerable to manipulation.
“Somebody who’s in their 70s and 80s who has an awful lot of money and declining mental capacity, they’re not as sharp to beware that someone is trying to rip them off through some kind of scam, either online or personal,” Edelman explained. “And this is why there’s so much elder abuse in this country.”
He urged people who have a caregiver for their mother or father to stay involved. Set up cameras, monitor financial s, and check in regularly, especially if a parent lives alone.
It’s easy to assume scammers are strangers—but often, they’re not.
“Not strangers! But family ,” Edelman lamented. “Maybe they’ve been going through a divorce. Maybe they’ve got a drug or alcohol addiction themselves. Maybe they’ve got a job loss. They’re struggling financially. They turn to dad for some help and we’re seeing all kinds of nefarious behavior.”
He suggested several steps to protect against scams:
- Work with an attorney to design legal documents that can protect parents
- Consider powers of attorney that give legal authority to make financial decisions on behalf of elder parents
- Set up trusts to prevent the accidental or fraudulent transfer of assets
Anyone worried about elder scams, fraud or financial exploitation can the U.S. Department of Justice’s National Elder Fraud Hotline. They provide services for all adults over the age of 60 who may be victims of financial fraud.
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