Have you been a victim of financial exploitation? You probably have, but didn’t know about it or too embarrassed to admit it.
Well, you are not alone. Statistics show that 26% of adult Americans have become victims of financial exploitation at some point in their lives, with 57% of them aged 50 and above.
That’s good news.
The bad news is that 58% of financial exploitation cases are committed by family members, while 17% are by close friends.
Here’s what it is…
“Financial exploitation” is the act by another person of taking your money or property, without your consent or knowledge and for his own benefit, depriving you of much-needed resources.
Sometimes called financial fraud, it comes in many forms, i.e., outright theft of money or property, making the victim alter important legal documents, living with an elderly rent-free, etc.
Elderly people are very vulnerable because they are very naive and trusting, and most of the victims are living alone.
Here are real-life examples:
– A grandma asked his grandson to withdraw money using her ATM. And he did. What she didn’t know was that he was withdrawing more than she asked him to. She found out later when she inquired about her bank balance.
– Another elderly was astonished to find out that her daughter changed her lease agreement and tried to take over her apartment. Not contented, she stole money from her aging mother.
You must have similar stories and thought they cannot happen to you. Don’t bet on it. They can if you are not careful.
These simple tips can help you avoid becoming a victim:
1. Be aware of the risk factors:
If you live alone, socially isolated, and starting to show a cognitive decline, you are potential prey to financial exploitation.
You can minimize your risk by getting connected with family, friends, neighbors or anybody you can trust to help you manage your resources.
Trust, however, is a fluid commodity where money is concerned. So keep them at arms’ length from your money by keeping accurate records of your transactions. This will deter anybody from thinking of doing something you will regret someday.
2. Don’t get into something suspicious:
More often than not, we do something against our better judgment.
If you think a proposal smells fishy, think about it a few days before jumping in. Better still, consult your family lawyer to understand its pros and cons.
Never rush into doing something you might be sorry for later.
Be very wary, especially about “double your money, or get rich schemes.” Most of the time, they are scams.
3. Don’t go into joint accounts:
Joint accounts give equal rights over an estate to the other party, creating the condition for financial exploitation.
Consult with your banker the pros and cons of such an agreement before going into it. Know the mechanics of how to manage your account in case of emergencies or if you get incapacitated.
4. Keep your home:
If you want to retire in place, never sign any document pertaining your home. You might end up living on the streets before you know it.
So many seniors became homeless this way.
5. Have a confidante:
Chronic loneliness is not good for your physical and mental health. It clouds your judgment, makes you careless and irrational.
To avoid this, have somebody to confide in regularly like a family member, a friend or a priest to keep your feet firmly on the ground.
They can assist you in making financial decisions; help you put in order your check balances, and help you identify potential problems before they happen.
6. Don’t be too trusting:
This may not be the best way to live a happy and stress-free retirement life, but when it comes to money treat everybody “guilty unless proven innocent,” especially phone callers.
For example, if you ask a relative to do ATM transactions, always ask for the printout. Don’t worry about offending his sensibilities. If he is well-meaning, he won’t. Only people with bad intentions get offended by this apparent show of distrust.
7. Set up a revocable trust:
A revocable trust is a trust whereby provisions can be altered ot canceled dependent on the grantor (owner). This provides excellent financial protection for seniors, says Bob Mauterstock, an elder care planning expert.
8. Set up a durable power of attorney:
This is a legal document giving someone you choose the power to act on your behalf should you become physically or mentally incapacitated.
But the person you choose to represent you must be someone you can trust your life on because the POA gives him unlimited access to your funds.
Falling victim to financial exploitation is very traumatic; it is like being robbed blind in broad daylight. It will affect your lifestyle, probably drive you to poverty.
So take all precautions not to fall into it. It is better to lose the goodwill of some family members or friends than lose your hard-earned money.
Please share to warn other seniors to be very careful in matters pertaining their finances.
Image: http://www.kcarplaw.com/financial-elder-abuse/
~oOo~
