Elderly people are becoming increasingly vulnerable to financial fraud instigated by scammers, family members and even unethical practices by some financial advisers. Being prepared and aware is the key to preventing this abuse.

Technology

While we may giggle at grandma’s inability to grasp the concept of Google, elderly people with very limited understanding of technology are at risk.

Recently, Sue received a call from a man checking how her new NBN service was working. In very little time, the scammer on the phone gained remote access to her computer and asked Sue to log into her bank account. Luckily, Sue recognised the danger and hung up the phone, but not before the caller became extremely angry and impatient.

Breach of financial safety can happen so easily and quickly. People are often unintentionally drawn into these situations by responding to scam phone calls or emails. And, before they know it, their funds have vanished and they don’t know where to turn. Often elderly people in this position feel embarrassed and ashamed, so they don’t seek help to fix the situation.

How to help:

o   Talk to your elderly family members and friends to make them aware of the dangers

o   Tell them not to click on any links or open up any emails that come from an unknown source, even if it look like their usual banks or service provider

o   Encourage them to speak up immediately if this situation does arise

Family and Friends

It is very common for elderly women, particularly widows, to struggle with their finances.

Their mental capacity to comprehend and remember may be significantly reduced through age or illness. Or they may simply not want to bother their children with their uncertainty. It’s not unknown for family members to squabble over inheritance, which can make the elderly resistant to asking for help. And the elderly who don’t have children are left alone to deal with their finances when they don’t really know how. They may trust friends or neighbours which doesn’t always go well.

Financial Advice and the elderly

While there are some financial advisers who only work with people with significant funds, (so they can charge higher fees), a good financial planner will protect their elderly clients from financial abuse and fraud.

Their role, as a trusted professional is to:

o Build a responsible, close and reliable relationship

o Respect the privacy of their client but be fully aware of their financial situation (Powers of Attorney, Wills, etc)

o Educate their clients about the risk of scam or unsolicited advice from friends and family members

o Create a simple, well-structured financial plan

o Be aware of the need to adapt the plan as their client’s life and cognition changes

As a client, it’s important to prepare early. When you’re young and ‘invincible’ is the perfect time to surround yourself with people you trust, before you become vulnerable and need their help. Build those relationships early. Test them. Because at some point you won’t be able to do it yourself.