An increasing number of families have observed that their senior loved ones' willingness to give away money—often referred to as financial altruism—becomes more prominent during the early stages of dementia, with some giving away money to strangers, leading to a higher risk of such potential scams.
In a recent survey, nearly 25% of Canadians (55+) said they had been targeted or fell victim to a financial fraud scam in the past. When pressed with specific examples of types of scams, the percentage of victims rose to 70%!!
With the onset of dementia, areas of the brain responsible for judgment and decision-making often get impaired. Such impairment can lead to poor judgment, and an inclination to be overly trusting causing seniors to misunderstand the consequences of their actions and give away money or provide sensitive information to scammers.
If you observe an increase in the risk of being scammed for an aging loved one due to dementia, you may want to consider the following steps before it’s too late:
- Engage Trusted Family members or Caregivers. Involving trusted family or professional caregivers will help with the supervision to block potential scams, monitor finances / spending activity, and educate seniors on the possibility of fraud. They can also help maintain regular communication to discuss any changes or concerns occurring in the behavior of a senior related to money matters.
- Set up Financial Safeguards. Consider setting up auto payments for bills to reduce the risk of having seniors believe that they must pay bills. Setting up limits on transactions and ATM withdrawals may also be a way to help avoid seniors falling prey to accessing unnecessary amounts of cash or making illegitimate transfers.
- Establishing a Power of Attorney (POA). Setting up a POA is an important step to have a trusted person manage the financial matters on behalf of the senior when cognitive impairment hinders their ability to make sound financial decisions.
- Blocking Phone Scams. Block unknown callers who may be potential scammers through phone settings or apps, as well as setting up email spam protection. Many banks also offer fraud prevention services in this regard (e.g. two factor authentication).
- Consult with Professionals. It’s a good idea to work with professionals, such as a geriatric care manager, elder law attorney, financial advisor, professional care manager to ensure that the financial wellbeing of seniors is kept safe and secure.
Seniors with dementia, especially those experiencing memory loss, are more vulnerable to scams and more likely to give money to strangers due to emotional sensitivity and a strong need for connection. These factors make them easy targets for fraudulent individuals or businesses seeking to exploit them. Therefore, it is crucial to implement specific measures to monitor finances and establish safeguards.
To understand more about financial scams targeting seniors or how professional caregiving can help prevent the same, contact the Health Experts at Home Instead
604-432-1139
