7 Ways to Protect Your Aging Parents From Financial Abuse

Even if your aging parents have always been financially savvy, they could still be in the cross-hairs of identity thieves and financial scammers. While it's upsetting to contemplate, it's important to realize that even trusted caregivers or family members may view your parent as a source of easy money.

Financial abuse of elders costs Americans around $36 billion each year according to a report by financial services firm True Link. Even with those daunting statistics, you can help your parents spot signs of financial abuse and take steps to prevent it.

Red flags for financial abuse of elders

• Unusual bank and credit card account activity: If you help your parents pay monthly bills, watch for substantial, frequent, or unexplained withdrawals from bank accounts. If your parents mention unexplained transactions, investigate.
• A new "best friend": Does Mom have a new friend you've never met who takes her shopping? Maybe Dad's neighbor mentioned an unfamiliar man stopping by frequently. These people could be legitimate friends, or they could be adept at spotting easy targets when it comes to taking advantage of senior citizens.
• Financial transactions without proper documentation: If a caregiver uses Mom's credit card to buy household groceries but never hands back a receipt, the caregiver could be making personal purchases. Cousin Bob may be helping your dad around the house, but he could also be withdrawing extra money from the ATM with Dad's debit card instead of just the amount requested.
• Sudden unpaid bills or insufficient fund notices: Your parents may not realize the actual balance of their bank accounts due to unauthorized withdrawals. Or perhaps a friend or relative hits them up for a "loan" or money gift. Your parent may even know that something is amiss but is embarrassed to tell you