“Financial losses from elder fraud schemes skyrocketed by 43% in 2024, with Americans over 60 losing nearly $5 billion to scammers, according to the Federal Bureau of Investigation.”
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That’s a staggering number—and a reminder of just how important it is to stay a step ahead.
The truth is, scams are becoming more sophisticated. Even the most careful, tech-savvy individuals can be caught off guard. It might be a convincing email, a friendly voice on the phone, or a message that seems helpful but isn’t.
But here’s the good news: there are real, practical steps you can take now to help protect the people you care about. And the best time to do it is before anything happens—when your parent is still independent and you can work together as a team.
This guide is here to help. We’ll walk through straightforward, respectful ways to create financial safeguards that give your aging parent confidence—not fear. Think of it as building a safety net—one that keeps them empowered, but better protected.
1. Start with the Talk—Before Trouble Starts
If your parents are still sharp and independent, that’s the perfect time to talk.
But let’s be real—it’s awkward. You’re talking about money, power of attorney, scams, and mortality. Not exactly Sunday brunch conversation.
Here’s how to make it easier:
✅ Frame it as protection, not control.
Say something like, “Scams are getting so advanced these days—even I’ve almost fallen for one. I want to make sure you’re protected, just in case something ever happens.”
✅ Use a news hook.
Referencing the FBI stat above can be powerful. “I just read this article about elder scams—$5 billion in losses. It made me think we should have some safeguards in place, just in case.”
✅ Keep it two-sided.
Offer to set up safeguards on your own accounts too. This makes it less about “you’re getting old” and more about shared protection.
2. Review and Organize Their Financial Accounts
Before you can protect anything, you need to know what’s there. It’s time to map out the financial landscape.
What to gather:
- Bank accounts (checking, savings, CDs)
- Investment accounts (brokerages, IRAs, pensions)
- Insurance policies (life, long-term care)
- Credit cards and loans
- Recurring bills (utilities, subscriptions)
- Safe deposit box contents
- Digital accounts and passwords
Use a simple spreadsheet or secure password manager to document everything. If your parent is willing, you can even use tools like Everplans or Trustworthy to organize and share securely.
3. Set Up Account Monitoring
Scammers are smart. You need to be smarter.
Modern banks—including many community banks—offer tools to flag suspicious activity. Use them.
Key tools to set up:
- Text or email alerts for large transactions
- Daily or weekly balance updates via email
- Fraud alerts tied to debit and credit cards
- Read-only access so you can view but not change anything
For instance, Liberty Savings Bank customers can enroll in mobile banking alerts, get real-time debit card notifications, and set up secure access for trusted family members.
If your parent is tech-savvy, walk through the setup together. If not, do it with them in-person.
4. Establish a Durable Power of Attorney (POA)
No, it’s not just for when someone is on their deathbed. A durable POA is one of the most powerful and essential tools for financial protection.
It allows someone (you, a sibling, a trusted third party) to legally manage your parent’s finances if they become incapacitated.
Key tips:
- Make it durable, meaning it stays in effect if your parent becomes mentally impaired.
- Have an attorney draft it, or use your state’s official POA form and notarize it.
- Ensure all financial institutions recognize it—some require additional paperwork.
You don’t have to use it immediately. But if a medical emergency hits or cognitive decline begins, you won’t be scrambling.
5. Freeze Credit to Prevent Identity Theft
A credit freeze is one of the most effective (and free!) ways to prevent someone from opening fraudulent accounts.
It doesn’t affect existing accounts or credit scores—and it can be temporarily lifted if needed.
How to do it:
- Visit the three major bureaus: Equifax, Experian, and TransUnion.
- Freeze your parent’s credit at each one.
- Store the PINs or passwords somewhere secure.
If you’re managing this for them, a signed POA or legal documentation may be required.
6. Simplify and Consolidate Accounts
The more accounts, the more complexity. The more complexity, the more vulnerability.
If your parent has multiple bank accounts or credit cards they don’t use regularly, it may be time to simplify.
Benefits of consolidation:
- Easier to monitor for fraud
- Reduces forgotten or dormant accounts (a scammer’s favorite target)
- Makes financial tasks less overwhelming
Be cautious not to trigger penalties for early withdrawals, especially with CDs or investment accounts.
7. Use Trusted Contact Features
Many banks and brokerage firms now allow you to add a “trusted contact” to accounts.
This person doesn’t have access to the funds. But if suspicious activity is detected or the institution can’t reach the account holder, they can contact you.
Examples:
- Schwab, Fidelity, Vanguard, and others support this.
- Some local banks offer their own version.
It’s a simple, low-risk way to add a layer of oversight.
8. Set Up a Daily Money Manager or Financial Caregiving App
If your parent is already struggling with bills, math, or remembering due dates, don’t wait.
You can bring in professional help—or go digital.
Options to consider:
- Daily Money Managers: Professionals who help seniors pay bills, organize finances, and avoid fraud.
- Apps like Carefull or EverSafe: Monitor accounts, flag unusual activity, and alert family members.
Some of these tools also help track cognitive changes over time—subtle warning signs that your parent may need more support.
9. Consider a Trust or Joint Ownership (With Caution)
You’ve probably heard of adding your name to a parent’s bank account. But that comes with risk.
Alternatives:
- Revocable living trusts: Allows assets to be transferred and managed smoothly while alive and after death.
- Payable-on-death (POD) designations: Avoid probate without giving access while alive.
- Joint ownership with right of survivorship: Useful in specific, carefully planned scenarios.
Always consult a financial advisor or elder law attorney before making ownership changes. You could accidentally create tax problems, lose asset protection, or disrupt Medicaid planning.
10. Educate Them on Common Scams (Without Shaming)
Education is a key form of protection—but delivery matters.
Don’t lecture. Don’t condescend. Share stories, news articles, even videos. Role-play what to say if someone calls asking for money.
Top scams to warn about:
- IRS or Social Security “suspension” calls
- Tech support pop-ups
- Romance scams
- “You’ve won a prize!” emails
- Grandchild in trouble scams
Let them know they can come to you if something seems off—no judgment. Scammers thrive on secrecy.
Be Proactive, Be Respectful, Be Ready
No one wants to believe their parent could fall for a scam—or lose control of their finances. But it happens. Every single day.
By stepping in early, with respect and a clear plan, you protect more than just money. You protect their independence. Their dignity. Their peace of mind.
The tools are available. The conversations can happen. The safeguards can be set up today—before it’s too late.
And if you're a customer of Liberty Savings Bank, reach out. We’re here to help walk you through account protections, alerts, and fraud prevention tailored to your family's needs. Because when it comes to protecting those we love, every step counts.
