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Caregiving Con Artists: Beware Of Financial Abuse By Family Or Caregivers
Seniors are increasingly the targets of fraud by people they trust—family members and caregivers. Often the abuser is given power-of-attorney and then transfers assets for his or her personal use. Title to a home or other assets may be transferred then sold; funds from checking, savings or investment accounts may be withdrawn; wills may be changed. The National Center for Elder Abuse in Washington, DC reports that financial exploitation accounts for about 12% of all reported elder abuse cases, but some experts believe many cases go unreported, especially when the abuser is a close relative. Here are some precautions from Jan Walsh who serves as an adviser to the National Council on Aging: - Limit powers-of-attorney. A power-of-attorney is a legal document that authorizes a person to perform certain legal or financial actions on your behalf. Before assigning such powers, make sure the person who is to act as agent is someone who can be trusted. Powers may be restricted and an annual accounting to an outside party such as an attorney or financial planner can be required.
- Use direct deposit for Social Security or other benefit checks. The funds can still be at risk, however, if the abuser is a joint owner of the account.
- Use automatic bill paying through checking or savings accounts or consider hiring a bill-paying service.
- Stay in touch with the bank. Banks are often the first to see questionable financial activity and can alert the account holder or a relative to suspicious activity.
- Check the caregiver’s references thoroughly—this includes contacting your local police department to request a criminal background check.
- Be wary of the caregiver who tries to isolate the person they are caring for. It is not as easy to commit fraud with the prospective victim is in regular touch with family and friends.
This article first appeared in Volume 5, Issue 6 of "The Social Security and Medicare Advisor" newsletter (May/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here.
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