Preventing financial fraud and abuse

How to spot potential fraud

It’s frightening to think of scammers calling your loved ones to convince them to sign up for a predatory loan or to send money to a grandchild who has lost their wallet in a foreign country. Those types of scams do occur, but most of the financial fraud against elders happens at the hands of someone the victim knows.

Realise it can be embarrassing for your loved one to admit they were taken advantage of. And if someone you love is being financially abused, it may be hard for them to ask for help.

This subject may be scary to discuss with an aging parent, but you can start the conversation gently. Consider beginning by asking if they have noticed more telemarketing calls or requests from charities.

Key questions:

• Who manages your loved one's money on a day-to-day basis?
• How are these relationships going?
• Are there new or unusual credit card charges or cash withdrawals?
• Is someone else named as an authorised person on their bank or investment accounts?
• Has your loved one recently run out of money at the end of the month?
• Have they mentioned regretting or worrying about any financial decisions made recently?
• Does anyone else have access to their accounts or assets, or to their home (where sensitive documents and passwords may be)?
• Has anyone recently asked them to change their will or power of attorney in their favour?

Scammers often start small. You could enlist the help of other family members to increase transparency and minimise the potential for financial fraud. For instance, if one sibling is managing your loved one's day-to-day finances, have another sibling receive account statements in order to monitor cash flow.

Similarly, if you or another family member will receive payment for caregiving services—which can be perfectly appropriate—be sure to establish a plan for this upfront and be transparent about the details with the rest of the family to minimise possible surprise and concern.