Protect Your Parents From Financial Scams

In what may feel like a role reversal, now is the time for adults to look out for their parents' well-being, as adults over 60 are losing billions to fraud each year. Here's how to prevent scammers from hurting your parents.

Talk to Them

By the time a person is old enough to collect Social Security, they have enough life experience to receive the benefit of the doubt concerning their judgment. Rather than making your parent or parents feel like you're worried about their decision-making skills, let them know that fraud is a real problem in this country.

It may help to approach the subject by citing a statistic you read that surprised you or a news story that caught your attention on the issue. However you ease into the subject, advise them not to share personal information, even if the person at the other end of the conversation feels like a friend. Encourage them to shred documents containing personal information or offer to do it for them.

The overall goal of the conversation is to remind your parents that some people make their money by scamming others, and older adults are a prime target. Whether your parents receive a pension, Social Security, or SSI, remind them that there's someone who may try to get their hands on it.

Set Up Safeguards

The safeguards that are most likely to protect your parents will depend on their specific situation. Here are some ideas, based on where they are in life:

• Don't automatically trust relatives or paid caregivers: Make sure there's backup — someone who looks out for your parents to make sure they're safe. It's not at all uncommon for a family member to suddenly become close to an aging parent, only to clean them out financially. There are plenty of stories about children, grandchildren, nieces, and nephews taking a senior's last penny.
• Talk to your siblings: Agree that two or more of you will regularly check in with your parents to be certain that they're not being taken advantage of. A scam perpetrated by someone they know is likely to start out small. For example, you may notice $100 is missing from your parents' emergency savings account, or they complain about cash missing from home. Keeping a close eye on them and their finances can help you head off a bigger scam.
• Monitor financial activity (if they agree to such an arrangement): Elderly parents, particularly those with memory issues, can benefit from having someone they love serve as their financial power of attorney or sign on as a joint account holder on their checking or savings account.

No parent likes the idea of being treated like a child. After all, they've spent decades parenting you. Let them know that you want to keep them and their money safe and you're willing to help in any way you can.

Learn more about Old National's commitment to fraud prevention.

This article was written by Dana George from The Motley Fool and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.