As people over 50 years old control over 70% of the nation’s wealth, fraudsters are using new tactics to take advantage of retiring baby boomers and the growing number of older Americans. In 2021, senior financial abuse cost victims at least $2.9 billion, not only depriving them of their resources but their independence as well.
Taking simple steps to safeguard personal information and being aware of warning signs can protect the aging population from financial abuse.
Tips for Seniors
- Plan ahead to protect your assets and to ensure your wishes are followed. Talk to someone at your financial institution, an attorney, or financial advisor about the best options for you.
- Shred receipts, bank statements and unused credit card offers before throwing them away.
- Choose a trustworthy person to act as your agent in all estate-planning matters.
- Lock up your checkbook, account statements and other sensitive information when others are in your home.
- Order copies of your credit report once a year to ensure accuracy.
- Never give personal information, including Social Security Number, account number or other financial information to anyone over the phone unless you initiated the call and the other party is trusted.
- Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
- Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
- Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
- Pay with checks and credit cards instead of cash to keep a paper trail.
- Trust your instincts. If it sounds too good to be true, it probably is.
- Visit the American Bankers Association website for a complete list.
Tips for Caregivers
The key to spotting financial abuse is a change in a person’s established financial patterns. Watch out for these “red flags”:
- Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals.
- Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
- Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
- New “best friends” accompanying an older person to the bank.
- Sudden non-sufficient fund activity or unpaid bills.
- Closing CDs or accounts without regard to penalties.
- Uncharacteristic attempts to wire large sums of money.
- Suspicious signatures on checks, or outright forgery.
- Checks written as “loans” or “gifts.”
- Bank statements that no longer go to the customer’s home.
- A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation.
- Visit the American Bankers Association website for a complete list.
If you’re a victim, or know someone who is a victim of financial abuse, it’s important to report it to the bank and enlist their help to stop and prevent it from reoccurring. If you’re a Merrimack customer and are concerned your financial information was compromised, please call us directly at 603.225.2793 so we can assist with protecting your accounts and identity.
If fraud is involved, report it to your local police to investigate. You can also contact Adult Protective Services in your town or state for help. In New Hampshire, you can contact the Bureau of Elderly and Adult Services at 603.271.2903.