Each year in the United States, more than 369,000 cases of financial abuse against older adults are reported. This form of abuse involves the theft or misuse of money belonging to older individuals, often by someone they know. According to a study by Comparitech, a cybersecurity research company, these incidents result in estimated losses of around $4.8 billion.

However, these reported numbers likely don’t capture the full scope of the issue. Many experts believe that elder financial exploitation is significantly underreported, meaning there are likely many more cases that remain unnoticed or unreported.

Fortunately, there are proactive measures that can be taken to prevent financial abuse before it occurs. Here are some strategies to safeguard yourself or your loved ones:

• Designate a trusted individual as your financial power of attorney. This person will be authorized to make financial decisions on your behalf if you become unable to do so yourself. It’s crucial to choose someone dependable and responsible for this role. Consider appointing two individuals to share this responsibility, enhancing accountability.
  
• Appoint a trusted contact for your accounts and investments. This individual is authorized by you to be contacted by your bank or financial institution in case of suspicious activity or difficulty reaching you. However, they cannot conduct transactions on your behalf, ensuring the security of your funds.
  
• Utilize a monitoring service for your bank accounts, investments, and credit cards. Tools like EverSafe and LifeLock can detect signs of scams, fraud, or identity theft. These services not only provide protection but also offer assistance in recovering any losses in the event of victimization.
  
• Maintain regular communication with older loved ones. Social isolation increases the vulnerability to financial exploitation, so it’s essential to stay connected through visits, phone calls, emails, or texts. Encourage engagement in community activities or social groups to combat isolation. Be vigilant for signs of attempts to isolate or pressure them into making financial decisions.
  
• Familiarize yourself with your loved one’s caregivers. When hiring in-home assistance, opt for reputable agencies that conduct a thorough screening and take prompt action in cases of theft, including involving authorities and compensating for losses. Monitor the caregiver’s performance in ensuring cleanliness, providing healthy food, and administering medications. Caregivers are less likely to exploit older individuals when they know they’re being closely monitored. If you suspect any wrongdoing or feel uneasy, seek an alternative caregiver.

By implementing these proactive measures, you can significantly reduce the risk of financial abuse and protect yourself or your loved ones from becoming victims.

George Bain is a Reverse Mortgage Planner with Fairway Independent Mortgage