How to protect your parents from financial scams

As we age, our financial vulnerability increases. According to a 2019 study by the Federal Trade Commission, adults aged 60 and over are more likely to fall victim to financial scams than younger adults. Scammers often target older adults because they tend to have more savings and are more trusting. Protecting your aging parents from financial scams is important, and there are several steps you can take to prevent them from becoming victims.

1. Educate your parents

The first step in protecting your parents from financial scams is to educate them about the different types of scams out there. This includes phishing scams, where scammers try to obtain personal information such as passwords and credit card numbers, and investment fraud, where individuals are convinced to invest in a fraudulent scheme. By educating your parents about these scams, they will be better equipped to recognize them and avoid them.

2. Encourage your parents to be skeptical

It's important to encourage your parents to be skeptical when it comes to unsolicited phone calls, emails, or letters. They should be wary of anyone who asks for personal information or money. Encourage your parents to ask questions and to take their time when making decisions about their finances.

3. Monitor their accounts

Monitor your parents' bank and credit card accounts regularly to ensure that there are no suspicious transactions. This will help you catch any fraudulent activity early on and prevent it from causing significant financial damage. You can also set up alerts for unusual account activity to receive notifications of any suspicious activity.

4. Set up a power of attorney

Setting up a power of attorney is a legal document that designates someone to act on your behalf if you become incapacitated. This can be an important tool in preventing financial scams, as it allows you to take control of your parents' finances if necessary.

5. Stay in touch

Stay in touch with your parents regularly, and ask them about any suspicious activity they may have encountered. Encourage them to reach out to you if they have any questions or concerns about their finances. By maintaining an open line of communication, you can help prevent financial scams and protect your parents' financial well-being.

In conclusion, protecting your aging parents from financial scams is important. By educating them about the different types of scams, encouraging them to be skeptical, monitoring their accounts, setting up a power of attorney, and staying in touch, you can help prevent them from becoming victims of financial scams.