Unfortunately, when it comes to fraud, there is a perfect storm targeting senior citizens. Many of the scammers who target this population are extremely crafty and have compelling stories and displays to make it look as if their operation is legitimate. Steering clear of these situations can be difficult; read on to learn more.
As a result of longer living and the risk of cognitive decline, there are challenges facing the elderly population when it comes to fraud schemes. One major concern has to do with financial abuse, which is frequently underreported. There is a large gray area associated with inheritance versus abuse, meaning that very few cases actually come to light involving such scenarios.
Many states have become active in putting forth “pause laws” that mandate waiting periods for financial transactions accomplished by anyone calling themselves an elder advisor. In addition, all states but New York require some kind of reporting of any potential abuse. The key to preventing these schemes, especially with regard to financial abuse, involves early communication with family members and the possible creation of a trust to generate an “invisible fence” around assets that can help cut down on outside access.