April 29, 2019 

consumer news 

FEDERAL DEPOSIT INSURANCE CORPORATION PHOTO: GETTY IMAGES

Protecting Seniors from Financial Abuse 

Be organized, 

proactive, and 

aware to protect 

yourself, family 

and friends from 

fnancial abuse 

It’s easier than ever to handle our 

finances without setting foot inside 

a bank with so many advances in 

technology, but these changes have 

also made fraud and financial abuse 

a prevalent problem for older adults. 

Most elder financial abuse involves 

scams, forgery, identity theft, or undue 

pressure to give someone access to 

property or funds by simply providing 

information over the phone. Older 

adults are often targeted for such 

exploitation because they may be 

perceived as trusting, they may be 

cognitively impaired, they may have 

more funds available after a lifetime of 

saving, and potentially less exposure to 

technological advances. 

Tips for Protecting Finances 

Seniors can protect themselves from 

fnancial abuse by making sure fnancial 

records are organized and being aware 

of how much money is in all accounts. 

In addition, you can protect your assets 

by talking to someone at your bank, an 

attorney, or a fnancial advisor to discuss 

your options for ensuring your wishes 

for managing your money and property 

are followed in the event you become 

incapacitated. Other activities to help 

protect yourself include: 

• Carefully choosing a trustworthy person 

to share your financial planning matters 

with so they can assist you with tracking 

your finances if you are unable to do so 

yourself. 

• Locking up your checkbook, account 

statements, and other sensitive 

information. 

• Ordering copies of your credit report to 

review for suspicious activity. (You are 

entitled to a free copy of your credit 

report from each of the three major 

credit bureaus once every twelve 

months. To order your free annual 

reports, go to AnnualCreditReport.com 

or call toll- free 1-877-322-8228.) 

• Never providing personal information, 

including your Social Security number, 

account numbers, or other financial 

information to anyone over the phone 

unless you initiated the call. 

• Asking for details in writing and getting 

a second opinion from a financial 

advisor or attorney before signing any 

document you don’t understand. 

• Paying with checks and credit cards 

instead of cash to have records of 

transactions. 
 

 

 

 

Tips for Family and Friends 

Family and friends can also help by being 

aware of the many ways in which an older 

person may be fnancially exploited. Tere 

are many scams and frauds that attempt 

to get bank account information or Social 

Security numbers from the elderly to 

steal their identity or money. Be on the 

lookout for signs of possible fnancial abuse, 

including: 

• Unexplained account withdrawals. 

• Another individual unexpectedly 

making fnancial decisions on the older 

person’s behalf. 

• Disappearance of funds or valuable 

possessions. 

• Unanticipated transfer of assets to 

another individual. 

• Sudden changes to a will or other 

important fnancial documents. 

• Suspicious signatures on checks. 

If you suspect elder fnancial abuse, talk to 

the victim to determine what is happening 

and who is involved. For instance, you’ll 

want to know whether a new person in their 

life is helping them manage their money or 

a relative is using their credit card without 

permission. If fnancial abuse seems likely, 

you may want to contact your state’s adult 

protective services and the local 

police for assistance. 

You should also contact any bank or other 

fnancial institution involved to notify them 

of the potential abuse, and they may be 

able to assist you. Tey may not be able to 

provide you with specifc information about 

accounts or transactions due to privacy 

laws, but they have the ability to review 

information for potential abuse as well as the 

resources to report abuse. 

Also be aware of consumer fnancial 

protection regulations that help protect 

funds withdrawn from an account without 

authorization. For example, most cases of 

fraud and identity thef are committed using 

an access device, such as when an individual 

steals an older person’s debit card and pin 

number to withdraw money from a 

checking account. 

Te Electronic Fund Transfer Act, which 

is implemented through Regulation E, 

protects consumers from losses that may 

occur as a result of certain unauthorized 

electronic fnancial transactions, such as 

unauthorized ATM withdrawals and pointof-sale terminal transfers in stores. If a debit 

card or the card number is used to make an 

unauthorized withdrawal from a checking

or savings account, you can minimize your 

losses by contacting your bank as soon as

possible. Your maximum liability under 

Regulation E is $50 if you notify your bank 

within two business days afer learning of 

the loss. Additionally, many credit card 

issuers have zero-liability policies, meaning 

that customers typically do not pay for 

unauthorized transactions, so contact your 

credit card issuer as soon as you

discover any. 

For more information on elder fnancial 

abuse, visit: 

https://www.consumer.ftc.gov/blog/2015/08/ 

spotting-elder-financial-abuse 

https://www.consumerfinance.gov/

consumer-tools/educator-tools/resourcesfor-older-adults/protecting-against-fraud/

For more help or information, go to www.fdic.gov or 

call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). 

Please send your story ideas or comments to Consumer Affairs 

at consumeraffairsmailbox@fdic.gov