7 steps to prevent financial abuse of elders
1. Talk about moneyFINRA suggests easing into a conversation with your aging parents about money2 by using "I" statements instead of "you" statements. Also, it's important to share that you have your parent's best interests in mind, and you're having this conversation because you love and care about your parent.
2. Offer to assist your parents with monthly bill paying
This way, you can monitor account activity and keep an eye out for suspicious transactions.
3. Meet your parents' friends
The American Bankers Association recommends asking about new people in your parents' lives. Find out specifics, such as whether the new person is "helping" them with money management or has access to their bank accounts.
4. Be present in your parents' lives
Visiting or talking with your parents regularly allows you to stay tuned in to their financial situation. They'll also be more likely to confide in you if they suspect that someone is taking advantage financially.
5. Notify your parents' bank
If you suspect elder financial abuse, report suspicions to your parents' bank and enlist the management's help to stop future transactions by that person.
6. Carefully vet caregivers
Always run a background check on your parents' caregivers to ensure that person doesn't have a history of theft or fraud. You can purchase a background check from your state police or a private company. Alternatively, you can order specific types of background checks through Care.com, a company that connects families with caregivers. You can also look up free public docket information for criminal and civil cases in many cities, counties, and states.
7. Check credit reports regularly
Review your parent's credit reports from the three major credit bureaus — Equifax, TransUnion, and Experian. Each consumer is allowed one free annual credit report from each agency, which you can order from one central website. You can also sign up with sites, such as Credit Karma or Credit Sesame, for free credit report access and monitoring.