PROTECTING FAMILY WEALTH FROM ELDER FRAUD: PRACTICAL STEPS TO HELP AGING PARENTS SAFEGUARD ASSETS WHILE PRESERVING THEIR INDEPENDENCE
Older adults are increasingly targeted by sophisticated financial scams. Recent FBI data shows seniors suffered more than $7.7 billion in reported fraud losses, the highest total of any age group.
Protecting a family legacy involves more than making sure you have estate planning documents in place. It also means reducing present day risk before fraud can erode hard earned assets.
These conversations are uncomfortable. Try to avoid confrontation by focusing not on a parent’s judgment, but on how sophisticated today’s scammers have become.
Here are four practical steps families can take, ideally as part of their planning with an attorney:
- Use a second-review rule.
Set a threshold for large withdrawals or unusual transactions and agree that they should be reviewed with a trusted family member before funds are moved.
- Turn on account alerts.
Enable real-time alerts for bank accounts and credit cards so suspicious withdrawals, logins, or profile changes can be caught quickly. Ask your parent to consider adding you as an additional contact on the accounts so you can also receive these notifications.
- Create a family verification word.
Because scammers now use AI voice cloning and impersonation tactics, a private family code word can help verify whether an emergency call is real.
- Prepare a response script.
Give aging parents a simple script for unsolicited callers: “I do not make financial decisions over the phone. Please provide your information and my family will follow up.”
Make sure your parent know these red flags to watch for: pressure to act immediately, demands for secrecy, and requests for payment by wire transfer, cryptocurrency, or gift card.
Protecting a family legacy requires practical safeguards and should be part of broader planning with your attorney before a crisis occurs.